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Perspective: RNG Provides Stability for Fleets
Domestic Fuel Alternative Costs Less Than Diesel and Isn't Subject to Geopolitical Chaos, Writes Clay Corbus of Clean Energy
Key Takeaways:
- Corbus says diesel prices have jumped 40%-50% since the start of the Iran war, squeezing margins for U.S. truck fleets and independent drivers.
- He argues that renewable natural gas from dairies and landfills is a cheaper, more stable domestic option.
- Fleets including UPS, FedEx and Amazon are using RNG trucks, as Cummins’ X15N natural gas engine has helped boost RNG adoption.
For operators of truck fleets running on razor-thin margins, the recent diesel price spike isn’t just an inconvenience, it’s an existential threat. Routes selected based on fuel consumption, weight and type of loads and other measures drive decisions rather than customer satisfaction. Every fill-up with prices now 40%-50% higher since the start of the Iran war could be a gamble on a fleet’s profitability for the quarter or even whether it survives.
Some independent truckers are burning through $1,800 a week on diesel, and that is only compounded for larger fleets. The math doesn’t work for anyone anymore — large, medium or small.
But while diesel prices swing wildly because of Middle East conflicts and global supply disruptions, there’s a domestic fuel alternative that costs less and isn’t subject to geopolitical chaos. Renewable natural gas is already powering heavy-duty trucks on American highways, and it’s time the trucking industry paid closer attention.
Recently, a facility at East Valley Dairy in Idaho began injecting RNG into the country’s pipeline system. With 60,000 cows producing around 5.5 million gallons of manure daily, this single operation converts agricultural waste into the equivalent of 300,000 diesel gallons of RNG fuel every month.
East Valley isn’t alone. America’s dairy farms and landfills from Maine to California produce millions of tons of methane-rich organic waste annually. The United States has a domestic energy supply that’s immune to wars in Iran, blocked shipping lanes and OPEC production decisions. It is produced on American farms, processed domestically and sold in America.
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Corbus
The price stability alone should make fleet operators take notice. For truckers trying to budget in an era of volatility, price stability isn’t just a luxury — it could mean survival.
Kevin Keene, president of California-based Food Express, detailed the benefits his company has seen after transitioning most of its trucks to RNG.
“We switched a large portion of our fleet to RNG years ago because it aligned with how we want to run our business, and now we’re really seeing the payoff these last few months especially,” Keene said. “I know a lot of carriers are dealing with swings in diesel prices right now. We certainly are feeling the crunch for our routes that run on diesel. It’s out of our control, and we just need to take the loss or pass it on.
“For our RNG fleet, the fuel is produced here in the U.S., and that’s made a huge difference for us. We’ve been running on RNG for over 10 years, and today our fleet of 90 natural gas trucks is largely insulated from the fuel price spikes everyone else is experiencing.”
The recent introduction of Cummins’ 15-liter X15N natural gas engine has boosted RNG adoption by heavy-duty truck fleets. Some of the nation’s biggest retailers and logistics companies — including UPS, FedEx, Amazon, J.B. Hunt Transport Services, Schneider and Paper Transport — are running RNG-powered trucks, which fuel up in minutes and get back on the road. The number of natural gas stations is increasing too, with 1,400 nationally covering 47 states and Washington, D.C., according to a December report by The Transport Project.
Brian Antonellis of Fleet Advantage discusses how fleet leaders should be thinking about capital planning with the 2027 NOx emissions rules on the horizon. Tune in above or by going to RoadSigns.ttnews.com.
When diesel prices spike 40%, carriers and shippers can see an overall cost increase of around 10%. Fleets get crushed between margins they can’t control, and the entire supply chain strains under the pressure.
But there’s investment into American dairies converting manure into a fuel that’s cheaper, cleaner and immune to geopolitical chaos. The technology works. The infrastructure exists. The economics favor adoption.
The question isn’t whether RNG works for trucking. It demonstrably does. The question is how long carriers and shippers will struggle with volatile diesel prices while a stable, domestic alternative sits underutilized. It’s time the industry accelerated adoption before the next price spike puts more truckers out of business for good.
Clay Corbus brings 19 years of experience at Clean Energy to his new role as CEO.
