For those of you working on fuel station roll-outs and initiatives in 2020, remember to include alternative fuel in your programs. Previously on-track to expire at the end of last year[1], The Alternative Fuel Infrastructure Tax Credit has just been retroactively extended—an opportunity owners can take advantage of while helping our global footprint. Fueling equipment for natural gas, propane, liquefied hydrogen, electricity, E85, or diesel fuel blends containing a minimum of 20% biodiesel installed through December 31, 2020, is eligible for a tax credit of 30% of the cost, not to exceed $30,000… Fueling station owners who install qualified equipment at multiple sites are allowed to use the credit towards each location.[2]
Alternative fuels are expected to grow their market share over the next few years. I’ve outlined the anticipated growth of each type below.
Electricity (EV Charging Stations): The population of electric vehicles will reach 3 million by 2025.[3] This market is expected to grow 21.1% between 2019-2030.[4]
Liquefied Hydrogen: Used by fuel cell vehicles, the only waste product is water vapor.[5] This market is expected to grow 67% from 2019-2026.[6]
Diesel Fuel Blends Containing Minimum of 20% Biodiesel: Biodiesel is a renewable fuel made from biomass (vegetable oils and animal fats).[7] There was a 111% increase in biodiesel use in the U.S. between 2012 and 2018.[8] The global biodiesel market is expected to increase by 5% between 2019-2024.[9]
E85: Made from crops and agricultural waste,[10] this fuel allows for more power without the cost of expensive race fuels.[11] This market is expected to grow 5.79% between 2019 and 2023.[12]
Natural Gas (CNG): Natural gas runs cleaner, more efficiently, and is cheaper than gasoline.[13] This market is expected to increase to 17% between 2019 and 2023.[14]
Propane: Cleaner-burning than gasoline, it is used by buses[15] and agriculture equipment. This market is expected to increase 3% between 2020 and 2025.[16]
I wish you all luck on meeting your companies’ roll-out goals in 2020.
[1] “Biofuels Explained.” U.S. Energy Information Administration, September, 2019, https://www.eia.gov/energyexplained/biofuels/biodiesel.php. Accessed 29, Jan. 2020.
[2] “Diesel Trends.” REG, June, 2019, https://www.regi.com/blogs/blog-details/resource-library/2019/06/10/diesel-trends. Accessed 29, Jan. 2020.
[3] https://www.businesswire.com/news/home/20200128005387/en/2019-2024-Global-Biodiesel-Market—Featuring-Profiles. Accessed 29, Jan. 2020.
[4] “019-2024 Global Biodiesel Market – Featuring Profiles on Archer Daniels Midland Company, Wilmar International Limited & Renewable Energy Group Among Others – ResearchAndMarkets.com.” Business Wire, January, 2020,https://www.slipstreamre.com/blog/2016/2/16/what-is-e85-and-why-is-it-important-for-racers. Accessed 29, Jan. 2020.
[5] “Running On Corn: Pros and Cons to E8.” American Muscle, https://www.americanmuscle.com/pros-and-cons-to-e85.html. Accessed 29, Jan. 2020.
[6] “Global Automotive Flex Fuel Engine Market Overview 2019-2023: Segmented by Geography Trends and Opportunities Growing with CAGR of 5.79%.” MarketWatch, October, 2019, https://www.marketwatch.com/press-release/global-automotive-flex-fuel-engine-market-overview-2019-2023-segmented-by-geography-trends-and-opportunities-growing-with-cagr-of-579-2019-10-09. Accessed 29, Jan. 2020.
[7] “The Advantages and Disadvantages of CNG Conversion Kits.” CNG United, https://www.cngunited.com/advantages-disadvantages-of-cng-conversion-kits/. Accessed 29, Jan. 2020.
[8] “Global Compressed Natural Gas Market 201-2023| Increase in Supply of Natural Gas to Promote Growth| Technavio.” Business Wire, https://www.businesswire.com/news/home/20181214005456/en/Global-Compressed-Natural-Gas-Market-2019-2023-Increase.Accessed 29, Jan. 2020.
[9] “Propane Vehicles.” U.S. Department of Energy Alternative Fuels Data Center, https://afdc.energy.gov/vehicles/propane.html. Accessed 29, Jan. 2020.
[10] “Propane Market-Growth Trends, and Forecast (2020-2025)” Mordor Intelligence, https://www.mordorintelligence.com/industry-reports/propane-market. Accessed 29, Jan. 2020.
Diesel Fuel Blends Containing Minimum of 20% Biodiesel: Biodiesel is a renewable fuel made from biomass (vegetable oils and animal fats).[1] There was a 111% increase in biodiesel use in the U.S. between 2012 and 2018.[2] The global biodiesel market is expected to increase by 5% between 2019-2024.[3]
E85: Made from crops and agricultural waste,[4] this fuel allows for more power without the cost of expensive race fuels.[5] This market is expected to grow 5.79% between 2019 and 2023.[6]
Natural Gas (CNG): Natural gas runs cleaner, more efficiently, and is cheaper than gasoline.[7] This market is expected to increase to 17% between 2019 and 2023.[8]
Propane: Cleaner-burning than gasoline, it is used by buses[9] and agriculture equipment. This market is expected to increase 3% between 2020 and 2025.[10]
I wish you all luck on meeting your companies’ roll-out goals in 2020.
[1] “Renewing the Biodiesel Tax Credit Can Be a Bipartisan Win.” Morning Consult, November, 2019, https://morningconsult.com/opinions/renewing-biodiesel-tax-credit-can-be-bipartisan-win/. Accessed 29, Jan. 2020.
[2] “Biodiesel Laws and Incentives in Federal.” U.S. Department of Energy Alternative Fuels Data Center, https://afdc.energy.gov/fuels/laws/BIOD?state=US. Accessed 29, Jan. 2020.
[3] “Quantifying the electric vehicle charging infrastructure gap across U.S. markets.” The International Council On Clean Transportation, January, 2019, https://theicct.org/publications/charging-gap-US. Accessed 29, Jan. 2020.
[4] “Electric Vehicle Market by Vehicle (Passenger Cars & Commercial Vehicles), Vehicle Class (Mid-priced & Luxury), Propulsion (BEV, PHEV & FCEV), EV Sales (OEMs/Models) Charging Station (Normal & Super) & Region – Global Forecast to 2030.” Markets and Markets, December, 2019, https://www.marketsandmarkets.com/Market-Reports/electric-vehicle-market-209371461.html?gclid=EAIaIQobChMIiszfisap5wIVD9bACh3hggLTEAAYASAAEgLZ7_D_BwE. Accessed 29, Jan. 2020.
[5] “Advantages & Disadvantages of Alternative Fuels.” Sciencing, August, 2019, https://sciencing.com/advantages-disadvantages-alternative-fuels-4779842.html. Accessed 29, Jan. 2020.
[6] “Hydrogen Fuel Cell Vehicle Market by Vehicle Type (Passenger Vehicle and Commercial Vehicle) and Technology (Proton Exchange Membrane Fuel Cell, Phosphoric Acid Fuel Cells, and Others): Global Opportunity Analysis and Industry Forecast, 2019–2026.” Allied Market Research, January, 2020, https://www.alliedmarketresearch.com/hydrogen-fuel-cell-vehicle-market. Accessed 29, Jan. 2020.
[7] “Biofuels Explained.” U.S. Energy Information Administration, September, 2019, https://www.eia.gov/energyexplained/biofuels/biodiesel.php. Accessed 29, Jan. 2020.
[8] “Diesel Trends.” REG, June, 2019, https://www.regi.com/blogs/blog-details/resource-library/2019/06/10/diesel-trends. Accessed 29, Jan. 2020.
[9] https://www.businesswire.com/news/home/20200128005387/en/2019-2024-Global-Biodiesel-Market—Featuring-Profiles. Accessed 29, Jan. 2020.
[10] “019-2024 Global Biodiesel Market – Featuring Profiles on Archer Daniels Midland Company, Wilmar International Limited & Renewable Energy Group Among Others – ResearchAndMarkets.com.” Business Wire, January, 2020,https://www.slipstreamre.com/blog/2016/2/16/what-is-e85-and-why-is-it-important-for-racers. Accessed 29, Jan. 2020.
[11] “Running On Corn: Pros and Cons to E8.” American Muscle, https://www.americanmuscle.com/pros-and-cons-to-e85.html.Accessed 29, Jan. 2020.
[12] “Global Automotive Flex Fuel Engine Market Overview 2019-2023: Segmented by Geography Trends and Opportunities Growing with CAGR of 5.79%.” MarketWatch, October, 2019, https://www.marketwatch.com/press-release/global-automotive-flex-fuel-engine-market-overview-2019-2023-segmented-by-geography-trends-and-opportunities-growing-with-cagr-of-579-2019-10-09. Accessed 29, Jan. 2020.
[13] “The Advantages and Disadvantages of CNG Conversion Kits.” CNG United, https://www.cngunited.com/advantages-disadvantages-of-cng-conversion-kits/. Accessed 29, Jan. 2020.
[14] “Global Compressed Natural Gas Market 201-2023| Increase in Supply of Natural Gas to Promote Growth| Technavio.” Business Wire, https://www.businesswire.com/news/home/20181214005456/en/Global-Compressed-Natural-Gas-Market-2019-2023-Increase.Accessed 29, Jan. 2020.
[15] “Propane Vehicles.” U.S. Department of Energy Alternative Fuels Data Center, https://afdc.energy.gov/vehicles/propane.html. Accessed 29, Jan. 2020.
[16] “Propane Market-Growth Trends, and Forecast (2020-2025)” Mordor Intelligence, https://www.mordorintelligence.com/industry-reports/propane-market. Accessed 29, Jan. 2020
Written By:
Tim Perrien |LinkedIn profile: linkedin.com/in/tim-perrien-b1839522
Biography: https://core-states.com/about/tim-perrien/
Director of Fueling Programs
D: 479.986.4450 E: tperrien@core-states.com
Core States Group | www.core-states.com
1700 Industrial Drive | Suite B | Rogers, AR 72756