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Cummins (CMI +2.3%) CEO Norm Linebarger is scheduled to appear tonight on Jim Cramer's CNBC show...

Cummins (CMI +2.3%) CEO Norm Linebarger is scheduled to appear tonight on Jim Cramer's CNBC show to discuss the national move to use more natural gas in transportation vehicles. UPS plans to increase the number of natural gas trucks in its fleet to 800 by the end of 2014, from 112 now, using engines developed by Cummins and Westport Innovations (WPRT +0.8%).
Comments (3)
  • dan_james
    , contributor
    Comments (4) | Send Message
     
    The pace of switching to natural gas, cng and lng, seems to me to be at a snails' pace. All, or most, of the seers and analysts have been saying this is the year for natural gas to explode in use in transportation. However, these 600, 900, 800 and other purchase announcements for natural gas engines are only a drop in the bucket of what is really needed. CLNE may get its clock wiped with Shell and ENN, a private company, when it comes to providing natural gas because they have moved so slowly. Westport Innovations has never made a dime and are going to have to get a lot of engines sold soon or they, too, will be locked out of the market by Cummins and others. Also GE has an add-on that can be put at already existing gas stations to provide cng and lng. CLNE may have been the first mover but they may end up finishing last.

     

    Daniel J. James
    24 Apr 2013, 12:31 PM Reply Like
  • dormouse
    , contributor
    Comments (67) | Send Message
     
    Dan......
    "existing gas stations" is not the market that CLNE is playing in. CLNE supports fleet vehicles (UPS, taxis, waste haulers, FedEx, buses, etc. because CNG takes too long to fill the big tanks at a "gas station". They are fueled overnight at their home stations. In addition, CLNEs big focus is on the 8 million class 8 trucks that deliver over the road.....thus their build out of the LNG stations with Pilot/Flying J. In addition, when consumers finally catch on and buy pick-ups and cars that use CNG......they'll be able to tap into their home natural gas lines and pump their own fuel in their garage using small compressor stations being developed by GE and others. 2013 won't be a boom year but it is the year that some of the larger Class 8 engines are coming on line and CLNE has stations in place that will allow early adopters a place to fuel.....coast to coast via ANGH.
    24 Apr 2013, 02:51 PM Reply Like
  • layzredfox
    , contributor
    Comments (10) | Send Message
     
    Dan,

     

    Making the transition from diesel to LNG is no small undertaking for the transportation industry. Movement has been relatively slow because both the railroads and trucking segments have basically been waiting to see who would step up and be the guinea pig in a real world environment. With BNSF's main line trials planned for this year, and this activity by UPS in it's linehaul function, those two segments will be able to see how well reality compares to theory.

     

    Either they come away with a warm and fuzzy, or it's back to the drawing boards.
    24 Apr 2013, 03:55 PM Reply Like
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