The CNG Advantage

WHY COMPRESSED NATURAL GAS (CNG)?

CNG empowers you or your business by providing a cleaner, more cost effective and more secure gateway to next-generation energy.

  • Natural gas offers a cleaner, more cost effective alternative to petroleum
  • Typical cost savings are around 33% or more when compared to a DGE (Diesel Gallon Equivalent)
  • Domestic natural gas distribution systems are already in place, making the switch to CNG easy and seamless
  • Fast fill dispensers allow you to fill your tanks in the same amount of time as traditional fuels

GUARANTEED SAVINGS

  • Fuel savings of up to 60%
  • Reduced emission
  • Start saving on day one!

Business situation

In an effort to confront energy inflation, save on escalating fueling costs, burn cleaner fuel, and be less dependent n foreign oil, the Partners of Johnson Melloh(JM)/Johnson Melloh Solutions (JMS) determined a need/desire to reduce the gasoline consumption of its vehicle fleet of 60+ vehicles via an investment in compressed natural gas infrastructure and vehicles. In addition, the leadership of JM/JMS desired to not only reduce current fleet fuel expenditure, but secure JM/JMS’ future by taking control of their fleet’s fuel production and therefore stifling inflation. JMS researched both the fueling infrastructure and the fleet up fits, secured the necessary materials and subcontracted to its sister company, Johnson Melloh, Inc for the installation. The key to eliminating our dependence on traditional gasoline was providing onsite fueling capable of effectively and efficiently fueling JM/JMS fleet. JM/JMS purchased new, used and also convert existing vehicles to CNG as its strategy to replace its gas vehicles. In 2013, JM/JMS constructed an internal CNG fueling station on site to service approximately 20 of its vehicles. JM/JMS has realized savings of over $2/gallon and is ready to expand its fueling infrastructure to meet the demands of its entire fleet. JEM Energy, LLC (owned by Nick & Andy Melloh) will be selling the fuel to JM/JMS and public vehicles. In order to make the station available to public fleets, JEM Energy must obtain permits, and a variance of use as its current zoning of I-S-3 allows for production and wholesale distribution of natural gas, but does not address retail sale.

Technical situation

JM/JMS fleets currently consume over 100,000 gallons of gasoline annually at a current annual cost of over $350,000. Gasoline will continue to experience not only volatile pricing, but rapid inflation. Our current investment in our CNG infrastructure and vehicles reduced JM/JMS’ dependence on foreign oil and the related risks, and also is currently saving nearly $100,000 annualized on the 26 vehicles we have converted. It is imperative that JM/JMS provide a reliable fueling station in order for JM/JMS to realize the projected savings. Owners invested $100,000 in the current fueling infrastructure, but the demand has outpaced its ability. Most of the materials in the current facility will be used in the new CNG facility.

Johnson Melloh Solutions performed energy audits on the JM/JMS fleet, and engineered an alternative energy solution utilizing Compressed Natural Gas (CNG) to fuel its 60+ vehicle fleet. Fueling the JMS fleet with CNG (in lieu of gasoline) will save just over $2.05/gallon, which equals over $200,000 in annual fuel savings based on 2012 consumption.. The owners of Johnson Melloh, Nicholas and Andrew Melloh, desired to sell fuel to their fleet via a new LLC called JEM Energy, LLC. JEM Energy, LLC owns and operates the fueling infrastructure which is located on the JM property located at 5925 Stockberger Place, Indianapolis, IN 46241. The fueling post is accessible to public fleets. Both JM & JMS will sign fueling contracts with JEM Energy, LLC. It is expected the savings on the CNG will pay for the fueling infrastructure inside of 7 years.

Compressed Natural Gas Benefits for JM Fleet

  • Fuel Cost Savings, whereas current fueling inflation is eating into the operating margins of the companies, and is not sustainable; Made in USA
  • 2.5 million gallons of gasoline displaced over 25 years; greatly reducing many tons of CO2 from being expelled into the atmosphere; safe, reliable, onsite fueling experience
  • Hedge against gas inflation (3.5% to 4.0% inflation expected annually)- JM/JMS is moving to CNG which has a 2.0% inflation and an average cost of $1.30/gge