Commercializing an alternate transportation fuel: lessons learned from NGV

An alternate transportation fuel, compressed natural gas, was adopted in Canada in the mid-1980s due to the unique conditions present at the time. The factors that had an impact on the limited acceptance of the fuel, keeping its rate of adoption below the critical point were examined in this paper. It was revealed that a lack of infrastructure to support converted vehicles was the deciding factor. Existing refueling stations failed to become profitable, preventing further investment in refueling facilities and resulting in depressed sales of converted vehicles. Excessive parts markup by conversion dealers was another major hurdle, as was exaggerated claims for environmental and economic benefits. In addition, promotional programs were poorly designed. In the late 1980s, the relative values of oil and natural gas shifted, lowering the momentum from sales of conversions. The consequence was major players leaving the market and natural gas remained on the fringe in both Canada and the United States. Different alternate transportation fuels, including electricity and hydrogen, are being favored by new technologies and driving forces. The growth to commercial viability for those fuels will likely be influenced by some of the factors that played a role in the fate of natural gas as a transportation fuel. 4 refs., 1 fig