Business Case for CNG in Chesapeake Virginia Municipal Fleet

April 13, 2011

The City of Chesapeake, Virginia has 53 vehicles and is considering converting them to use CNG. This case study is an economic assessment that was done for a potential future projects. Specific variables for the locality were considered, such as purchasing schedule specific fleet costs and vehicle miles traveled. This document establishes a feasibility scenario for CNG usage in the municipal fleet in Chesapeake by calculating the life cycle cash flow of investing in the vehicles and infrastructure and paying it back through savings in fuel expenditures. Decisions made on equipment purchases, capital upgrades, and fuel contracts have long-term impacts on the operational success of the fleet. NREL has modeled the impact of these decisions and other fleet parameters with its VICE model and analyzed fleet projects.

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