The New Jersey Board of Public Utilities has approved a pilot program from New Jersey Natural Gas (NJNG) that will see up to seven compressed natural gas (CNG) refueling stations built around the state over the next year.
The $10 million project is aimed squarely at bolstering the natural gas vehicle (NGV) market in New Jersey, particularly among commercial fleets. NJNG intends to build at least five stations, and perhaps as many as seven. Right now, there are only three public-access CNG sites in the state.
NJNG's initial work will include identifying host sites for the stations by reaching out to organizations in Morris, Monmouth and Ocean counties that have deployed or plan to use NGVs in their fleets. NJNG is open to discussions with private companies, as well as public entities and municipalities.
NJNG notes that it will install, own and maintain the CNG infrastructure, and the host company will be required to make the station open to the public and use, initially, at least 20% of the refueling capacity.
The company plans on submitting a cost recovery filing in the first quarter of 2013. A portion of the proceeds from the utilization of the CNG equipment, along with any available federal and state incentives, will be credited back to ratepayers to help offset the investment.
‘With the availability and price benefit of today's natural gas, we have an opportunity to help grow our economy and protect our environment by encouraging the market for alternative fuel vehicles, and that's good for New Jersey and our future,’ says Laurence Downes, chairman and CEO of NJNG.