Quantum and Ryder Enter Agreement for CNG Truck Leasing
Quantum Fuel Systems Technologies Worldwide, a natural gas storage systems company, announced it has entered into a long-term agreement with Ryder System Inc. for the purchase and supply of complete compressed natural gas (CNG) fuel systems that will help reduce costs and increase vehicle uptime for businesses that lease CNG trucks from Ryder.
With the agreement, Ryder will purchase CNG tank systems directly from Quantum and install them onto CNG-powered vehicles with a team of Ryder technicians. Ryder's maintenance team has worked with Quantum to develop comprehensive procedures to ensure that tank system installations will meet the highest industry standards.
Natural gas tank storage systems are one of the most expensive components of a natural gas vehicle. By purchasing the systems direct, Ryder can pass savings onto its lease customers, ultimately delivering a faster return on investment for this natural gas vehicle technology.
Ryder will be the first transportation company to use Quantum's CNG systems on a national scale. In addition to the purchasing agreement, Quantum and Ryder will work together to improve future fuel system designs, based on Ryder's market leadership and experience operating CNG vehicles in commercial truck applications.
"Next to the limited commercial fuel infrastructure, the biggest barrier to the broad adoption of natural gas vehicles is the initial cost of the technology," stated Ryder President of Global Fleet Management Solutions, Dennis Cooke. "This relationship will help make compressed natural gas vehicles more affordable and reliable, so more businesses can take advantage of their environmental and efficiency benefits."
Ryder will be using Quantum's Q-lite CNG tank system, which is lighter than other tank systems on the market, making it highly effective in delivery applications where payloads have increased and on-board weight saving is essential. The high capacity systems are designed for superior reliability, helping to improve vehicle up-time. The adaptable model design is ideal for medium- and heavy-duty trucks, and provides exceptional cost, weight, and capacity (Diesel Gallon Equivalent - DGE).
Ryder's leasing and rental business model enables businesses to "test" the new technology with less risk of downtime, as well as insulate themselves from the unknown residual risk. Ryder's natural gas fleet includes more than 500 compressed and liquefied natural gas vehicles operating more than 20 million miles, and serving over 40 customers in California, New York, Texas, Arizona, Michigan, Utah, Georgia, and Louisiana. Ryder also operates two Liquefied to Compressed Natural Gas (LCNG) fuel stations at its maintenance facilities in Orange and Fontana, Calif.