Examples of potential fleet costs savings
A CNG gas station can be financed in several ways:
1. Buy the capital equipment outright.
2. Lease it through the cost of the fuel (we call this "through the nozzle" pricing and is charged in the form of a pence per litre or pence per Kg of fuel used).
The main capital elements of any CNG project are as follows:
- Compressor station (compressor, dryer, motor, canopy, control system)
- Storage cylinders (including control panel)
- Dispenser (and any fuel monitoring equipment)
- Gas & electricity supplies
- Civil groundwork (bases, fences, gates, ducts, refuelling islands etc.)
- Interconnecting pipework and electrics
There are then a number of Operating costs that need to be determined:
- Gas (the primary fuel)
- Electricity (to run the compressors & control systems)
- Maintenance (scheduled & breakdown service cover)
- Project management costs (to design, install, operate & manage the station)
- Fuel duty (road fuel government tax, currently 13.7 p/Kg)
The customer will have a good idea of how much fuel they are likely to use in a year, and it is this amount that primarily determines the amount and type of equipment needed, its capital value, and therefore its cost as a ratio of its throughput.
GCNGSL believe that for most CNG projects where the customer has a sensible sized fleet (say 20-30 vans, or 10-15 trucks) then the typical fuel price that can be achieved is in the region of 80 p/Kg (60 p/litre diesel equivalent).
This 80 p/Kg is fully inclusive and covers all costs associated to the capital equipment, fuel, maintenance, installation, and duty - i.e. this is all they pay for their gas station and fuel, no upfront capital (GCNGSL or its partners will finance the whole thing).
This would be typically for a 5 year term (fits with most vehicle purchase/lease terms), and would be subject to a minimum take contract and penalty clauses to protect both sides.
Annual fuel savings, over diesel, would typically be in the region of 30% although this value would reduce due to the slight increased cost of the CNG vehicles (15-20% Net savings are typical).
To see some example project costs please click on "Example savings" from the Potential Savings sub-menu.