By Greg Rayburn/Staff Writer
Friday, August 19, 2011 3:33 PM CDT
From left, North Little Rock Mayor Patrick Hays and Ward 2 Alderman Maurice Taylor examine the new city-owned natural gas fueling pump at the CNG station at 320 Curtis Sykes Drive in North Little Rock. The station is open for public use and the facility had its open house Tuesday afternoon. (Greg Rayburn)
The city of North Little Rock held an open house Tuesday for its first condensed natural gas fueling station open to the public at 320 Curtis Sykes Drive.
The station’s opening was the result of three grants procured by the city, including a $300,000 state grant from the Department of Agriculture and $100,000 grants provided by Chesapeake Energy and Southwestern Energy. The city’s taxpayers contributed $250,000, according to Mayor Patrick Hays.
About 90 people attended the open house, mostly from the city, state and federal legislators, natural gas providers and local automotive dealers in the business of selling CNG vehicles.
Hays said now North Little Rock-area residents can pay the equivalent of $1.44 per gallon for compressed natural gas to fuel their vehicles, while people who have gasoline-powered cars and trucks are paying nearly $3.50 per gallon.
Hays said the city will be paying between 88-95 cents per gallon for compressed natural gas from CenterPoint Energy. Revenues earned above fuel costs will go toward station maintenance and the eventual construction of another CNG fuel pump that would cost between $70,000 and $80,000. The station also will allow patrons to use self-service debit cards. The city is charged debit card fees by the card holders.
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Five percent of revenues generated at the CNG pumps will be returned to state coffers in the form of sales taxes, Hays said.
“We want to put in another fuel pump as demand dictates,” Hays said.
Hays said the city’s three CNG-powered vehicles will use the station and he plans on asking other local governments such as cities and school districts to purchase CNG vehicles.
Hays said the state is planning a grant program under which 50 percent of the cost to convert municipal vehicles to compressed natural gas will be provided by the government.
Hays said he believes many other CNG stations will open in the state.
U.S. Rep. Tim Griffin, R-Little Rock, said communities such as North Little Rock are helping the country move forward to meet its energy needs.
“It is clear that CNG is a part of the solution,” Griffin said. “It is abundant, clean-burning, American and is from Arkansas. It means jobs.”
Ray Talley, Crain Automotive’s CNG operations manager, said his goal is to sell 1,500 CNG-powered trucks and cars in about a year, but he would be happy if he sells between 700-800.
The cost of converting a gasoline-powered vehicle to run also on compressed natural gas can be about $10,500.
“The benefits are you pay 60 percent less in fuel costs and CNG is 90 percent cleaner than gasoline or diesel,” Talley said.
Several officials spoke about the benefits to the state because Arkansas is a supplier of natural gas. Some noted that having more CNG vehicles on the road will help the country become more energy-independent.
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