Waste Management, Inc.
) recently announced the launch of a new fleet of 25 compressed
natural gas (CNG) trucks and unveiled the first public-access,
24-hour CNG fueling station in Louisville, KY.
The new fleet of state-of-the-art vehicles will replace the
existing heavy-duty collection trucks and will run on CNG, a
cleaner fuel compared with to conventional gasoline or diesel fuel.
The new fueling station will provide first-of-its-kind
infrastructure to supply CNG fuel in Louisville.
Waste Management will likely add up to 25 CNG-powered collection
vehicles in Louisville and plans to roll out additional CNG-powered
collection vehicles in the area in the future. The public fueling
station will serve Waste Management's local fleet as well as other
corporate fleets and other vehicles running on CNG,
Waste Management, with its current fleet of approximately 1,700 CNG
vehicles is the largest owner and operator of clean-running, heavy
duty refuse trucks in North America. The company's goal is to
develop the cleanest fleet of heavy duty trucks in the
In 2012, natural gas vehicles are expected to represent 80% of
Waste Management's new truck purchases and intends to sustain this
trend for the next five years. Each of the natural gas fueled
collection vehicle is expected to reduce diesel usage by 8,000
gallons annually and also reduce greenhouse gas emissions by an
average of 22 metric tons.
Waste Management has opened 13 CNG stations across the country in
the first half of 2012, of which 9 have public accessible fueling
stations. Waste Management currently operates 31 fueling
stations in North America and expects to bring an additional 17
fueling stations online by the end of the year.
Waste Management owns the stations, purchases the fuel and
finances the construction of the stations. It also enters
into maintenance contracts with third party companies. This
strategy allows the company to secure better natural gas prices in
the long run.
CNG is one of the cleanest fuels currently available for use in
heavy-duty trucks and also offers cost savings and runs quieter
than diesel trucks. Its helps reduce particulate matter emissions
to approximately 86%, carbon monoxide emissions by 80%, nitrogen
oxide emissions by up to 32% and carbon dioxide emissions by 25%.
The natural gas fleet is part of the company's environmental
sustainability initiative to reduce its fleet emissions by 15% and
increase the fuel efficiency of its fleet by 15% by 2020. We
appreciate Waste Management's commitment to reducing greenhouse gas
emissions through increased recycling, use of alternative
transportation fuels, and beneficial use of landfill gas.
Houston, Texas-based Waste Management provides collection,
transfer, recycling and resource recovery, and disposal services to
nearly 20 million residential, commercial, industrial and municipal
customers. The company is also a leading developer, operator and
owner of waste-to-energy and landfill gas-to-energy facilities in
Waste Management competes in niches with
Casella Waste Systems Inc.
Republic Services Inc
). The shares of Waste Management currently retain a Zacks #4 Rank
(short-term Sell recommendation).
CASELLA WASTE (CWST): Free Stock Analysis
REPUBLIC SVCS (RSG): Free Stock Analysis Report
WASTE MGMT-NEW (WM): Free Stock Analysis Report
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