Wednesday, January 16, 2013

Natgas-to-Gasoline a Better Mousetrap for Consumer Auto Market

And while I'm at it, yet another benefit to the proposed natural gas-to-liquids plants by G2X Energy and Sasol is that GTL is a more effective way for natural gas to penetrate the market for consumer automotive fuel.  While natural gas engines are penetrating the markets for trucking, buses, garbage trucks, fleet vehicles and the like, consumer NGVs are a long, long way off.

The commercial market offers better economic prospects, but the consumer market seems oh so tantalizing for so many.  But the likelihood of Mr. and Mrs. America converting their vehicles to run on natural gas or buying a natgas vehicle is slim.  While there will be some market penetration, there is too much of a change in mindset and infrastructure required to make any real penetration into consumer CNG.

But by converting natural gas into liquid gasoline, the fuel would integrate nicely into the consumer vehicle market without any need to add fueling infrastructure or change vehicles.  GTL doesn't offer the same economics to the end user and is probably not quite as clean, but from the perspective of natural gas producers, it is a shorter hill to climb to get natural gas into my car.

No comments: