Behind the Costs of CNG Conversions
In my recent post – How Much Natural Gas to Replace Gasoline? – I mentioned that it is quite expensive to convert a gasoline-powered vehicle to natural gas. If you drive a tremendous number of miles each year – as many fleets do – the conversion will pay for itself relatively quickly. For most of us, the savings wouldn’t be enough to justify the conversion.
Today I received an e-mail from Marc J. Rauch, Exec. Vice President/Co-Publisher of The Auto Channel, who shed a bit more light on why the conversion is so expensive. I found this information quite useful, and I received his permission to post his e-mail, seen below.
Hi Robert -
Thanks for the work you did on figuring out how much natural gas we actually seem to have (according to current knowledge) and for the related cost comparisons. It’s a great and value tool for those of us that believe in CNG (and propane) as a viable engine fuel alternative.
One thing that I would like to add (assuming that you didn’t already know this or learn it since posting your piece), is that the cost of CNG conversions for existing vehicles is as high as it is because of EPA licensing requirements. For an individual (or shop) to be licensed to do a conversion, the person must pay $10,000 per year, per engine type, per year of manufacture. So that if a conversion shop wanted to do conversions in 2009 for Camrys for the years 1995 to 2005, the shop owner would have to pay the government $100,000 in licensing fees. Then, if he wanted to do conversions on the same models in 2010, he would have to pay the $100,000 again, even though they are the exact same models and engines that he has been licensed on already. And if there is more than one engine involved, i.e., a 6-cylinder and 8-cylinder, the cost would double.
Therefore, if a shop owner wanted to do 10 model years of Camrys and Corollas and Celicas, and well as Honda Accords and Civics, unless there were common engines being used in these five models the licensing cost (for just one engine per) would be a half million dollars, which would have to be paid again in 2010. These fees are, needless to say, ridiculous and are only there to ensure that many don’t get done (thanks to the gasoline lobby). The cost of the conversion kits are actually relatively inexpensive. If there was a sensible licensing fee (or no fee) the cost for the work could be just a few hundred dollars.
To be fair, there is a second part of the cost equation that has to be addressed: trained CNG conversion mechanics. An argument is typically made by those that want to make argument against CNG that there aren’t enough trained mechanics. This is somewhat true, but of course there really is no shortage of new and old mechanics that would be willing to learn. So the issue is where can they be trained? The University of West Virginia has a great automotive program that they’ve “syndicated” to other colleges around the country. In California, two schools (Rio Hondo in So. CA and Yuba College in No. CA) teach the UWV curriculum. They can and do teach CNG conversions.
I hope the above wasn’t too redundant for you. If you have other information or newer information I would love to hear of it.
Marc J. Rauch
Exec. Vice President/Co-Publisher
THE AUTO CHANNEL