5 Ways Flex-to-Green Prepares Today’s Diesel Users for Natural Gas Tomorrow

Alternative Fuels / Natural Gas Vehicles, Fleet Management
September 29, 2015

Natural GasWith a lower carbon emission and price per gallon, and a more favorable public impression, the arguments supporting natural gas are compelling. But for many carriers and fleet managers considering a switch from diesel to natural gas, those arguments can’t beat one reality: diesel’s continued low prices.

For diesel users looking for a way to embrace natural gas, Ryder’s Flex-to-Green (F2G) program could be the solution. It allows a fleet to take advantage of currently low diesel prices, while positioning the organization to easily convert to natural gas when the timing and circumstances are optimal, like diesel prices rising or other conditions calling for a move to cleaner and greener fuels.

Different from any lease program currently offered in the industry, Ryder’s unique Flex-to-Green program offers organizations the freedom and flexibility to enjoy low diesel prices now, with the option to change equipment with no penalty during the lease term.

Here’s how the program works:

With either new or renewal lease contracts, companies can opt to switch diesel vehicles for state-of-the-art CNG- or LNG-powered units at any time over the life of the lease after the first 12 months of the lease agreement.

With this unique degree of flexibility, companies now have several reasons to consider transitioning their fleets to natural gas…

  1. Get a traditional truck lease that leverages lower fuel costs today – with an out tomorrow. Those who already have a F2G contract enjoy the security of a hedge against possible rising fuel prices. As some fleet operators won’t switch from diesel to natural gas until the per-gallon cost of the two exceeds at least $1, some have negotiated with their natural gas suppliers discounts of a dollar or more per gallon equivalent off pump prices to accelerate the benefits.
  1. Tap the advantage of incentive programs. With state grants and incentives, like those found in Texas and California, for example, more carriers and fleet operators are finding financial incentives to make the move to natural gas.
  1. Eco-friendly is customer conscious. F2G is a simple way to jumpstart sustainability programs and earn green credibility. Switching to natural gas can reduce carbon dioxide (CO2) emissions by 20% to 30%, carbon monoxide (CO) emissions up to 75%, and nitrogen oxide (NOx) emissions by approximately 50%.
  1. Larger shippers are demanding natural gas options. Beyond consumer awareness increasing, some of the nation’s largest shippers, including the U.S. Postal Service, are submitting requests for proposals that require fleets run, at least in part, on natural gas.
  1. F2G is risk free – with benefits. If diesel prices don’t rise during the term of the lease, there’s no obligation to switch. Meanwhile, as with any Ryder Full Service Lease, you minimize your investment in equipment, improve your return on capital, manage maintenance costs as a more predictable monthly expense, know your vehicles will be maintained to ensure peak customer service, and keep costs low as the business grows.

Ryder first introduced F2G in 2011. With these enhancements, which debuted nationwide on July 1, 2015, Ryder will exchange up to 1,000 vehicles under the F2G program.

Under F2G, Ryder conveniently and cost effectively enables organizations to transition to natural gas. No fleet manager wants to be locked into long-term contracts tied to unpredictable and volatile fuel costs. Flex-to-Green is the industry’s first and only tool to leverage today’s fuel benefits and tomorrow’s greener solution.

 

Authored by Allen Nielsen

Allen Nielsen is Director of Business Development-Advanced Fuels with Ryder, where he provides full service natural gas solutions to customers and prospects throughout the West. Based in Salt Lake City, Utah, he’s spent his career in the logistics and energy sectors.

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