Integrys Energy Inc.
) operating wing Trillium CNG announced plans to expand its
compressed natural gas ("CNG") fueling network by constructing
101 public access Class 8 accessible CNG stations by 2016. The
company intends to build these stations across 29 states and near
major interstate highways to meet customer demand.
For public access to these stations, Integrys Energy will
secure a fuel purchase agreement with an anchor customer for each
CNG station. The addition of fueling facilities will enable
Integrys Energy to supply CNG to a larger number of fleets
running on busy trucking routes.
The abundance of natural gas and its clean burning nature are
making it increasingly popular as a transportation fuel. CNG is
cost-effective and more eco-friendly than diesel. In fact, we
have already seen how cheap natural gas has gained traction at
the utilities, replacing coal, for the generation of
Meanwhile, the U.S. automotive manufacturing capacity is
projected to rise 4.4% in the period 2013 through 2018 while the
trucking industry will witness steady growth in the upcoming
years. In addition, by 2040, usage of CNG in heavy-duty vehicles
will climb to 1 trillion cubic feet per year which will displace
0.5 million barrels per day of diesel use as per the Energy
We believe Integrys Energy's CNG stations will capitalize on
the favorable auto and truck industry outlook. It has been
progressively developing its CNG operations over time. Last year,
the company inked a high-quality agreement with AMP Americas to
establish a network of CNG stations in America.
Currently, Integrys Energy retains a Zacks Rank #2 (Buy).
Other utility counterparts also well positioned at the moment are
Zacks Ranked #2 (Buy)
Alliant Energy Corp.
Black Hills Corp.
DTE Energy Company
Based in Chicago, Ill., Integrys Energy is a diversified
energy holding company engaged in regulated and non-regulated
energy operations in the United States.
BLACK HILLS COR (BKH): Free Stock Analysis
DTE ENERGY CO (DTE): Free Stock Analysis
ALLIANT ENGY CP (LNT): Free Stock Analysis
INTEGRYS ENERGY (TEG): Free Stock Analysis
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