Rapid development of new engines, the United States natural gas truck market is getting better

A few days ago, according to Reuters, GM CEO Dan Exxon made it clear that: "In the field of automotive natural gas engine and component development, GM needs to return to the North American market."

Generic Betting for Natural Gas Engines In early July, General Motors and Westport signed an agreement to reach agreement on the strategy for developing natural gas engine control systems, emissions and overall performance. According to the agreement between GM and Westport, Westport plans to establish a new technology center in Michigan. There are currently about 15 Westport personnel working in Farmington, Michigan. With the increase in the demand for vehicles that use natural gas as an alternative energy source, Westport plans to increase more R&D personnel and infrastructure.

Westport, which manufactures natural gas engines for large trucks, is currently working with Caterpillar to assess the feasibility of natural gas fuel system technology being applied to Caterpillar's large engines, and to jointly develop natural gas for mining trucks and large earth excavators. engine. Subsequently, Westport will begin cooperation with GM to manufacture natural gas engines.

Jack Robinson, chief investment officer of the Wins Land Green Growth Fund, which owns 4% stake in Westport, said: “The cost of manufacturing a natural gas engine for a large truck is between US$200,000 and US$300,000. Westport will directly Or through its partners indirect investment of about 1 billion US dollars." At the same time, he also predicted that in the next 3 to 5 years, the average annual growth rate of green technology companies will be 20% higher. “The 20% growth rate is a good result, especially in the stagnant economic environment. At the very least, the current US economy has not grown and it has not improved.”

R&D of natural gas engines is the trend of the times. According to relevant data, at present crude oil is trading at nearly US$95 per barrel, and natural gas is only US$4 per million Btu, which is $4/mmBtu (1 ton of coal = 24.06 million Btu).

As the automotive industry is committed to reducing its dependence on oil and is working to develop the vast natural gas market in North America, natural gas engine and component manufacturers (such as the Westport Corporation) will stand out in this round of innovation. Sean Swenson, an analyst at market research firm Think Equity, said: “Natural gas is a clean, cheap energy sourced from the United States. It further provides an effective guarantee for national energy security,” he added. Look at R&D companies that invest large amounts of capital in natural gas engines and components, such as Fuel Systems Solutions (FSS) and Landi Renzo of Italy, and they all begin to enjoy returns. The alternative energy solution provider company has already worked closely with GM to install natural gas engines for its trucks."

Analysts pointed out that no matter which car manufacturer, whether the company needs it or not, must invest in the field of green fuel. If you do not do this, it will eventually be eliminated by this industry.

Many factors fueling natural gas engines Natural gas-fueled vehicles are considered more environmentally friendly than all-electric vehicles because the electric power required for electric vehicles is usually provided by fossil-fuel-fired power plants. Compared with gasoline vehicles, natural gas is cheaper, so it is increasingly being used on buses and heavy trucks.

According to reports, many U.S. households use natural gas for heating and cooking, but there are only 900 gas stations that can supply natural gas in the United States. This means that the widespread promotion of natural gas vehicles at this stage is not yet very realistic. However, with the promotion of the market and the encouragement of policies, it is only a matter of time before a large number of vehicles in the United States replace natural gas as fuel.

Many factors help fuel the natural gas engine. The natural gas truck market is getting better. Some experts have suggested that hybrid vehicles can be produced first, which will make it easier for owners to use domestic natural gas supply devices.

This vehicle requires two fuel tanks, one for compressed natural gas and the other for gasoline. In this way, natural gas fuel can be used as a daily short-distance, and fuel tanks are prepared for long-distance travel and can be refueled at existing gas stations along the way.

According to the U.S. Energy Act, the U.S. government has created incentives and incentives for trucks to change their natural gas power. It is expected to spend about US$4.1 billion, so natural gas engines and component manufacturers are also encouraged. Recently, 187 members jointly submitted a proposal to the U.S. Congress, the new version of the US Alternative Energy Transport Program (NAT GAS), and requested the government to provide rebates for gas-powered car buyers. According to this proposal, the purchase of natural gas-powered vehicles can save up to 80% of the purchase cost, and the purchase of heavy trucks can receive up to 64,000 US dollars in tax deductions.

In addition, the proposal also requires tax rebates for purchases of natural gas and gasoline or diesel hybrids, and subsidies for the construction of natural gas filling stations. If this bill is finally passed, it will certainly inspire and promote the existing natural gas truck industry in the United States.