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Leasing allows for quick conversion to CNG
Leasing trucks has allowed his fleet to go green quicker and save money at the same time, according to Bill Osteen, senior vice president of business operations at Golden Eagle Distributors in Tucson, AZ. The company is returning its diesel delivery vehicles to the leasing company with whom they've done business for 40 years and getting compressed natural gas (CNG) vehicles in their place.
"We had an existing lease which was not at term, but the leasing company thought it was important to get it done now," Osteen says. "If we owned the trucks, we probably wouldn't make this move. … Buying 75 CNG trucks all at once would have been a stiff investment."
The company, which is the exclusive distributor of Anheuser-Busch products and other craft beers and imports, will lease 23 CNG trucks for its entire Tucson fleet by year's end. With six branch operations and a total of 75 delivery trucks in all, the entire fleet will eventually be converted to CNG. The company also owns a support fleet of around 200 vehicles—vans, cars and pickup trucks—some of which will be converted to CNG. According to the U.S. Dept. of Energy, CNG vehicles produce 95% less particulate matter, 80% less nitrogen oxide, and provide a reduction of 23% in greenhouse gas emissions compared to diesel engines.
Golden Eagle has a commitment to environmental awareness as part of its business plan. It was named Arizona's Greenest Workplace in 2010 by Mrs. Green’s World, an environmental website that promotes sustainability. In 2010, Golden Eagle recycled over 4 tons of aluminum, 62 tons of glass, and over 420 cu. yd. of cardboard, plastic, and paper.
Osteen says that his company had considered hybrids, but for its operation, hybrids did not provide a return-on-investment the company was comfortable with. "The payback could be immediate with CNG, but we’re building a fueling station on site which extends the break-even to 3 to 3-1/2 years instead." He says Golden Eagle prefers to control fueling itself through its own fueling station, which is how diesel is dispensed. "We want fueling on-site instead of sending our drivers out to refuel," Osteen says. He adds that eventually the company will open up its CNG fueling station to the public.
Not only is going to CNG good for business, it's also good for the leasing company. "We look at it as a partnership," Osteen says. "They stepped up their part by converting their shop to CNG for us. They can use us as a test case and see how well they can make it work. CNG up to now has been used only in refuse trucks and school buses but not in commercial fleets.
"As soon as there are success stories out there about how you can not only go green but save money, more fleets will move to CNG," Osteen adds. "It's the way to go."
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