All:
Another report;
Friday September 12 5:41 PM EDT
Natural gas-fueled buses to cruise Mexico City
By Timna Tanners
MEXICO CITY, Sept 12 (Reuter) - Smog-choked Mexico City will get an experimental fleet of cleaner, natural
gas-powered buses by the end of the year, industry and government officials said.
The new buses are part of Mexico's efforts to comply with its own strict new environmental laws that come into effect in
1998. Vehicle exhaust is a major pollutant in Mexico's cities.
``The first CNG (compressed natural gas) station will be up and running before Christmas,'' Penn Wilson president John
Weber told Reuters this week at a conference on natural gas powered vehicles.
He said Penn Wilson, a subsidiary of Penn Octane (POCC), is working with Mexico's government to build the stations so
natural gas-powered passenger and utility vehicles can hit the streets by year-end. Buses have already been ordered,
Weber said.
Mexico's drive for the new vehicles stems from ``evidence of greater energy efficiency in natural gas vehicles, the opening
of the fuel to the private sector and the positive environmental impact of the techology,'' Energy Savings Commission
spokesman Odn de Buen Rodrguez said.
The roughly 400-600 new buses will not replace Mexico's current fleet, but will be added to it, an industry source said.
Ford Motor Co (F), General Motors Corp (GM) and Grupo Dina(DIN - news) (DIN.MX) displayed natural gas-powered
sedans, cargo and passenger vehicles at the conference here this week.
But industry officials said the government must first set up the necessary infrastructure to supply the fuel before the vehicles
could take off in Mexico.
Gerard Roussel, engineer at Ford, told Reuters the company will wait on the sidelines to see how demand for natural
gas-powered cars develops.
``We're not selling in Mexico at this point, but when the market takes off in Mexico we'll be more than ready,'' he said.
``I think it depends on how quickly refueling infrastructure gets into place because demand will depend on lower fuel cost.''
The cost of converting standard cars to natural gas is between $3,000 and $4,500 per car, Mexico's Energy Regulatory
Commission President Hctor Olea said. He added that the Finance Ministry was working on incentives for businesses and
car owners to shoulder the conversion costs.
The government is also tendering a concession for private natural gas distribution in Mexico City, a move aimed at boosting
residential uses of the fuel.
Automakers said natural gas is a more cost effective fuel than gasoline when used in larger quantities, such as in utility
vehicles. Engines of the vehicles are equipped with dual tanks for natural gas and gasoline.
About 60,000 natural gas-fueled vehicles are operating in the United States and one in more than five buses is powered by
CNG, Weber said. The natural gas-fueled cars can cost just $1,000 more than standard gasoline versions, he said. |
