Alternative Financing: Will your lender buy in to alternative fuel?
MONTREAL, QC -- Trucks that run on alternative fuels promise to be easier on the environment, but the equipment itself can be tougher on a capital budget. Consider natural gas. It’s historically cheaper than diesel, but the trucks that use it can cost an extra $50,000 to $100,000 over the price of their conventionally fueled counterparts, depending on the spec’s.
Context: Understanding electric trucks
Electric trucks seem to be all the rage today, just as natural gas was to be the industry's salvation just a few years back. There's not much excitement in natural gas today, though it remains a viable alternative fuel. Electric trucks, on the other hand, are just beginning their climb to prominence. Interest in electric trucks peaked in November with the world's first look at Tesla's Electric Semi. Whether Tesla can carry the torch for battery-powered heavy trucks remains to be seen, but Elon Musk isn't only player in the market. Transpower's electric Class 8 tractor uses a conventional drivetrain, but with a 400-horsepower electric motor. It has a range of up to 160 kilometers at full load. I drove a fully electric plug-in Transpower USA Class 8 tractor back in 2015. That truck had been in field tests at the port of Long Beach, California, for two years prior to that. The company made headlines recently announcing a partnership with Meritor that will make its technology commercially available in the spring of this year.