Six years ago, Chicago-based Chicagoland Laundry and Dry Cleaners, a 72-year-old family-owned company, made the decision to cut overhead costs by fueling its 83-vehicle delivery fleet with compressed natural gas (CNG) instead of gasoline. In that time, Chicagoland has not only reduced fuel expenses, but fleet operations have improved and the environment has benefited.
"We made the conversion to CNG because it promised a savings over gasoline," said Martin Schaffner, Chicagoland's vice president. "We haven't regretted it." Chicagoland's savings equal about 35 cents for every gallon equivalent of natural gas it uses rather than gasoline.
About six years ago, Schaffner began investigating alternative fuel, as the country was recovering from the late-1970s petroleum embargo. He knew his fleet's characteristics supported a conversion to CNG, and his financial concerns demanded it. "The big question was, how long would it take for a natural gas system to pay for itself? We figured that altogether our vans traveled 1,100-1,500 miles daily, so the payback period would probably be pretty short," he said.
Chicago's gas utility, The Peoples Gas Light and Coke Company, put together a finely-detailed feasibility study for Schaffner. The utility itself was in the process of converting its service van fleet to CNG, putting them in a good position to advise Schaffner.
After careful review of the study, Schaffner also talked to manufacturers of CNG-conversion equipment. In late 1982, he decided to switch to natural gas. The total cost of outfitting the fleet, plus the cost of a compressor, came to more than $250,000. The cost per truck was $2,000 or $166,000 for all 83 trucks. Added to that expense was the compressor station cost of $90,000. According to Schaffner, the system paid for itself in fuel savings and maintenance reductions within four years. "Using CNG fuel for our delivery vans has contributed greatly to reducing our costs over the past few years. It has enabled us to remain competitive," he said. Oil and spark plugs last longer on CNG and engine life is extended. Other advantages to CNG cited by Schaffner were that natural gas burns cleaner and is pollution-free.
