Colorado Gov. Ritter seeks grant to boost natural gas demand

July 7, 2009 -- Colorado Governor Bill Ritter announced today that his Energy Office, in partnership with Clean Energy, a major supplier of compressed natural gas for transportation, and the Southern and Northern Colorado Clean Cities Coalitions, has applied for a $10 million grant from the U.S. Department of Energy to dramatically expand the use of compressed natural gas as a fuel source for industry, transit and public vehicles in Colorado.

The grant would help fund a $27.6 million project to deploy 68 heavy duty natural gas vehicles in key industry fleets - such as those employing waste disposal trucks and transit buses - as well as construct five new compressed natural gas (CNG) fueling stations across Colorado. The remaining cost would be picked up by project partners.

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"Natural gas plays a key role in Colorado's growing New Energy Economy," Gov. Ritter said. "With abundant supplies of clean-burning natural gas in Colorado, this project will help industry and consumers further benefit from home-grown energy sources and build a more sustainable transportation sector.

"We are working closely with our industry partners to increase natural gas demand in Colorado with efforts like this one," Gov. Ritter said. "We applaud Colorado-affiliated companies, like Clean Energy, for being national leaders in alternative fuels and for making this investment in our state's future."

Running a vehicle on natural gas cuts CO2 emissions by 30 percent and nearly eliminates other harmful emissions such as sulfur dioxide, nitrous oxide, and volatile organic compounds. Colorado currently has 18 fueling stations selling clean natural gas for as low as 80 cents per gallon.

The project's success could open the door to greater use of compressed natural gas to fuel heavy-duty vehicles in various Colorado industries, potentially extending to thousands of vehicles that travel Colorado streets and highways every day. The project would also boost the state's important natural gas industry, reduce harmful emissions and increase Colorado's energy security.

"Converting vehicles to clean-burning natural gas is one of the quickest ways to clean up Colorado's Rocky Mountain air," said Colorado Oil & Gas Association President Meg Collins. "Unlike other very promising, but still emerging, alternative fuel options, natural gas is a proven fuel that we produce right here in Colorado. With gasoline and diesel prices once again on the rise, clean natural gas is quickly becoming a low-cost, low-emission alternative."

Should the Governor's Energy Office and its partners be awarded the grant, the project could save an estimated 666,500 gallons of petroleum per year and up to 2.66 million gallons over the four-year life of the contract. The project could also reduce more than 145,000 pounds of greenhouse gas emissions per year.

The project is also designed to extend the regional CNG markets by linking two of the five fueling stations planned for Colorado to those in others states; Wyoming along the Interstate 25 corridor and in Utah along the I-70 corridor.

Source: Colorado Governor