COLUMBUS, Ind. — Interest in natural gas trucks has waned, with demand falling well short of what was projected two years ago, according to a new report from ACT Research.
The rapidly declining cost of diesel has meant the return on investment when buying natural gas trucks has become less lucrative, ACT reports.
Original projections suggested there would be a 5% penetration of natural gas heavy-duty trucks, but based on 2014 actual results and the sharp drop in diesel prices, that initial projection is now labeled by ACT as “optimistic.”
“With the price differential between diesel and natural gas narrowing, the ROI to convert from diesel to natural gas is moving in the wrong direction: payback periods are lengthening,” said Ken Vieth, ACT’s senior partner and general manager.