Companies Team to ‘Reduce Monthly Payments for Truck Fleets’
GE Capital, Canada is promoting a new partnership with Shell Canada Products designed to make it easier for private fleets to deploy liquefied natural gas-fueled trucks. The two “will work together to reduce monthly payments for truck fleets that lease natural gas vehicles,” GE Capital says.
Fleet owners would sign natural gas fueling contracts with Shell and, separately, secure leases for LNG vehicles via GE Capital. The agreement covers operators agreeing to fuel their trucks at Shell facilities.
The program will initially focus on western Canada, as Shell has established LNG fueling facilities in Calgary and Edmonton.
Addresses Residual Value Issue
“Through this agreement, we’re giving over-the-road trucking companies the financial incentive to make the shift from diesel to natural gas,” François Nantel, who leads GE Capital, Canada’s transportation business, said in a release.
“Working with Shell will help address truck operators’ concerns regarding the trucks’ value and incremental capital investments and allow them to access the benefits of LNG vehicles from day one,” he said.
Dual Fuel? Yes
The program essentially eliminates the LNG truck re-sale value question that troubles operators, says Montreal-based Veronique Hache, natural gas strategic initiative leader at GE Capital, Canada. “He doesn’t have to worry about the residual value of the equipment,” she told F&F. “We take care of the re-sale.”
“We’re totally brand-agnostic,” she says, indicating that the program can apply to any manufacturer’s trucks. It also applies to dual fuel vehicles, she says, with terms adjusted accordingly.
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Source: GE Capital with Fleets & Fuels follow-up