Quantum and GAIN Partner on CNG Truck Financing Program

Posted by NGT Staff on May 06, 2015 No Comments
Categories : New & Noteworthy

Quantum Fuel Systems Technologies Worldwide Inc., a provider of natural gas storage systems, integration and vehicle system technologies, has announced a supply and marketing alliance with GAIN Clean Fuel, a brand of U.S. Gain, to package and offer compressed natural gas (CNG) trucks through existing dealership relationships.

The partners say this program is offered in conjunction with, and financed by, a CNG fuel contract provided by GAIN Clean Fuel, where fuel pricing can be fixed for up to five years. The program would initially include a Quantum 123 DGE back-of-cab system on a Kenworth 680 CNG truck and a CNG fuel contract with GAIN Clean Fuel.

The program would provide fleets and truck operators with two options for paying the incremental cost related to a CNG truck:

According to the companies, the first option would allow the fleets and truck operators to amortize the additional cost of the CNG fuel system and CNG truck cost into a CNG fuel contract with GAIN Clean Fuel so that the operators will pay no additional up-front costs.

The companies say the fleet operator would then purchase fuel from a GAIN Clean Fuel station under a long-term contract with the cost of the CNG system and the cost differential between a CNG truck and a diesel truck amortized in the CNG fuel price over the length of the fuel contract at prices as low as $1.99 per gallon equivalent.

The second option available is special pricing to assist reducing the differential cost for the CNG components on the new truck, the partners continue. The companies say the customer would pay the incremental cost at the time of the vehicle purchase rather than having the cost amortized in the price of the CNG fuel, thus allowing the fleet and truck operators to purchase fuel from GAIN Clean Fuel at preferred pricing levels.

The Quantum-GAIN Clean Fuel pricing program will leverage GAIN Clean Fuel's network of fueling stations throughout North America. The program will initially be offered in the following areas: Aurora, Colo.; Des Moines, Iowa; Charlotte, N.C.; Nashville, Tenn.; Dallas; Oklahoma City; and Kansas City, Mo. Additional locations will be announced later this summer.

‘This program gives the fleet and truck operators the opportunity to defer paying any up-front capital requirements for fleets to convert to CNG and provides them immediate payback and ongoing savings for up to five years,” says Brian Olson, president and CEO of Quantum. “We believe this opportunity to amortize the incremental cost of a CNG truck removes a challenging hurdle for fleets moving to CNG.”

‘This is the first-of-its-kind program that allows carriers of all sizes to take advantage of the benefits of CNG,’ adds U.S. Gain General Manger Bill Renz. ‘We are thrilled to be announcing this partnership and look forward to helping grow the use of CNG in the transportation industry.’

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