Interstate takes delivery of first two LNG trucks

Interstate Distributor said it has taken delivery of the first two LNG trucks last week in Tacoma.

Interstate purchased in August 20 LNG tractors for regional trips along the Interstate 5 corridor out of the company’s yards in Tacoma, Washington and Fontana, California in August, making it the first national freight carrier in the Pacific Northwest to “go green.”

The trucks, 10 LNG-fueled Kenworth T680 day cabs based in Fontana and 10 52-inch regional sleepers in Tacoma, are more expensive than traditional diesel tractors, between $40,000 and $80,000 more, depending on the vehicle, but the company will cut its fuel costs virtually in half. Even with roughly 20% fewer miles-per-gallon, company’s CFO James Reed said he expects the LNG tractors to pay for themselves in two years. The trucks are also safer to fuel, as LNG simply evaporates upon contact with air, and each reduces greenhouse gas emissions by the equivalent of 324 vehicles, according to industry analytics.

Reed said Interstate jumped at the opportunity to engage in an ongoing, national conversation on building a natural gas fueling infrastructure. The Port of Tacoma approved a lease in August for plans by Puget Sound Energy to build a $275 million LNG facility at the Port to supply Totem Ocean Trailer Express, another Saltchuk company, with LNG to fuel its two Orca-class cargo ships.

“The PSE site should help in as much as its presence will provide a local supply point,” Reed said. “The largest portion of our LNG cost is getting to the fuel. With our nearest supply point upward of five hours away, this will lower that cost significantly.”

Meanwhile, Blu LNG, based in Salt Lake City, operates a national network of LNG fueling stations, including one in Sumner, Washington. And while more stations are under construction, the company’s aggressive growth strategy has been slowed while it waits for more fleets to make the conversion to LNG.

Reed said another option is to use Clean Energy Fuels, a California-based company that built and supplied 27 natural gas fueling stations during the first six months of 2014, nine of which were placed along highways. Clean Energy has offered Interstate a temporary mobile fueling station, or “harpoon,” that it will maintain and keep full on Interstate’s yard.

“There are some real challenges there,” Reed said. “Especially in the Northwest, the availability of fueling stations is not widespread. California has much more substantial fueling options.”

[mappress mapid=”16191″]

Press Release; Image: Interstate Distributor