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Freight carriers increasingly turn to natural gas power

In increasing numbers, major US contract freight carriers are deploying heavy-duty natural gas-powered trucks to support their customers’ supply chain transport requirements.

Clean Energy Fuels Corp (Nasdaq: CLNE) contracts with carrier fleet operators to provide compressed natural gas (CNG) or liquefied natural gas (LNG) fueling services at public access stations nationwide.

Among the most recent for-hire fleet operators to opt for natural gas fuel are: C R England, Salt Lake City UT; Ryder Dedicated Logistics, El Segundo CA; Transplace, Frisco TX, and Glacier Transportation & Logistics, Atlanta GA; and Werner Enterprises, Omaha NE.

C R England

One of America’s largest contract freight carriers, C R England has deployed a new fleet of Peterbilt LNG trucks to transport products out of Southern California to the Las Vegas area. The trucks have 15-liter Cummins-Westport LNG engine systems and fuel in Clean Energy’s Southwest Corridor of LNG fueling stations. C R England operates a fleet of 4,000 trucks and uses more than 70 million gallons of fuel per year.

Ryder Dedicated Logistics

Ryder provides product transportation services for Fresh & Easy, a western US chain of retail grocery stores. Fresh & Easy is a subsidiary of Tesco, which is among the world’s leading retailers. Ryder operates a regional fleet of CNG tractors for Fresh & Easy’s Moreno Valley distribution center. The fleet is expected to consume more than 400,000 gallons of CNG fuel annually.

Transplace and Glacier Transportation & Logistics

Third-party logistics provider Transplace and Sunny Delight Beverages Co have partnered with Glacier Transportation and Clean Energy to deploy a new CNG-powered truck fleet. The five-year agreement will transport products such as Sunny Delight and Fruit2O beverages to customers across Southern California. Glacier expects the transition from diesel power to CNG fuel for its fleet operations will result in substantially less greenhouse gas emissions and reduced fuel costs.

Transplace has been Sunny Delight’s 3PL (third-party logistics) provider since 2006.

Werner Enterprises

An early adopter of natural gas vehicles, Werner is deploying both CNG and LNG trucks in the Los Angeles area. Werner is the nation’s 11th-largest for-hire carrier, operating more than 7,000 tractors in reefer truckload, dry van, flatbed, expedited, dedicated contract carriage, and across-the-border services. The combined fleet consumes more than 100 million gallons annually.

Currently priced up to $1.50 or more per gallon lower than diesel or gasoline, natural gas fuel reduces costs for vehicle and fleet owners, and lowers greenhouse gas emissions up to 23% in medium to heavy-duty vehicles. Natural gas is a secure North American energy source, and 98% of the natural gas consumed is produced in the United States and Canada.

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