GE and Chesapeake Energy in pact to speed adoption of natural gas as transportation fuel

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GE and Chesapeake Energy in pact to speed adoption of natural gas as transportation fuel

Greentech Lead America: Diversified technology group GE
has signed an agreement with Chesapeake Energy Corporation to develop
infrastructure solutions to speed up the adoption of natural gas as
transportation fuel.

GE claims that this technology and services project marks
a significant milestone toward increasing energy independence in the U.S.
through the increased use of natural gas for consumers and commercial users.

“GE is fundamentally committed to natural gas. What makes
this project particularly exciting is that it paves the way to taking the
immense reserves of natural gas being discovered in the U.S. and using them
right here in the U.S. That paves the way for faster economic growth, energy
security, more jobs and reduced environmental impact,” said GE Energy President
& CEO John Krenicki.

As per the agreement, two companies will develop and
bring to market compressed natural gas (CNG) and liquefied natural gas (LNG)
transportation and natural gas home-fueling solutions.

By enhancing access to CNG, which is most used in light-
to medium-duty vehicles such as pickups, vans, SUVs, taxicabs, transit buses,
refuse and delivery trucks as well as consumer vehicles, along with LNG, which
is commonly used for heavy-duty industrial purposes, dependence on foreign
energy sources can be reduced while simultaneously lowering fueling costs and
vehicle emissions.

The collaboration is designed to leverage GE’s global Oil
& Gas technology portfolio with Chesapeake’s expertise in developing
innovative fueling solutions to lower the ownership and operational costs of
natural gas vehicle (NGV) fueling stations.

With the development of shale resources dramatically
increasing the amount of low-cost natural gas in North America, the
GE-Chesapeake collaboration can help incentivize operators to put more NGVs on
the nation’s highways.

“Both GE and Chesapeake are known for taking on tough
energy challenges and putting the best minds and technologies to work to develop
solutions,” said Aubrey K. McClendon, Chesapeake’s Chief Executive Officer.

GE will provide more than 250 modular and standardized
CNG compression stations for NGV infrastructure. These units, also known as CNG
In A Box, have gone through GE’s ecomagination-qualification process and will
provide the core infrastructure to enable expanded access to CNG at fueling
stations.

A vehicle using CNG can reduce annual fuel costs up to 40
percent, assuming 25,700 miles per year driven, gasoline priced at $3.50/gallon
and CNG at $2.09/gasoline gallon equivalent. This represents savings totaling
as much as $1,500 per fleet vehicle per year. In total, for each fleet vehicle
using fuel provided by CNG In A Box instead of gasoline, a fleet operator can
reduce CO2e emissions from fuel combustion by about 24 percent, or 2.2 metric
tons per vehicle annually, assuming an average fleet vehicle travels
approximately 25,700 miles per year.

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