Author(s): Ohia N.P., Anyadiegwu C.I.C., Muonagor C. M.
Economic analysis of the use of compressed natural gas (CNG) for powering automobiles was presented. The data for costs of constructing and running CNG-powered vehicles were obtained for the study. Economic analysis of running the CNG-powered vehicles was performed. The initial costs of project and operating costs amounted to N3.71million and N1.31million for CNG respectively. The net revenue for CNG is N2.55 million. Figures were used to determine the pay-out of the project which is 1.45 years. The Net Present Value (NPV) and other parameters that make up the project economics were estimated for CNG. The NPV for CNG at an expected rate of return of 10% is N15.7 million. The summary of the result of the calculations of all the parameters examined for CNG was also presented. From the whole analysis done it is easily seen that using CNG for powering vehicles is economically viable.
Compressed Natural Gas, Economic Analysis, NPV, Pay-Out, IRR, Automobiles
- Go Natural Gas, Inc., “What is CNG?” 1644 N. El Camino Real San Clemente, CA 92672; firstname.lastname@example.org; (949) 340-7702, 2009.
- California Energy Commission, “Compressed Natural Gas (CNG) as a Transportation Fuel” Consumer Energy Center; retrieved www.consumerenergycenter.org, July 2013
- Wikimedia Foundation Inc., “Compressed Natural Gas” retrieved www.wikipedia.org, June, 2013.
- Mumtaz Alvi, "Pakistan has highest number of CNG vehicles: survey"; 2011-06-03
- International Association for Natural Gas Vehicles, "Natural Gas Vehicle Statistics: NGV Count - Ranked Numerically as at December 2009". Retrieved 2010-04-27.
- Consulate of the Argentinian Republic, "Market Studies Series, GNC", in Spanish. Retrieved 2011-01-03, Mumbai.
- The Engineering Tool Box, “Fuel Gases - Heating Values; Resources, Tools and Basic Information for Engineering and Design of Technical Applications” retrieved www.engineeringtoolbox.com July 2013.
- American Gas Association, “AGA Monograph on Underground Gas Storage”, Arlington, V.A.
- Mahanagar Gas Limited, “Compressed Natural Gas FAQ” E Vision Technologies Retrieved from www.mahanagargas.com, 2013.
- Nelson Irrigation Corporation, “800 Series Valve Resource Manual” 848 Airport Road, Walla Walla, WA 99362-2271; Fax: 509-525-7907; USA, 2013.
- Watt Glen, “Natural Gas Vehicles Transit Bus Fleets: The Current International Experience” International Association for Natural Gas Vehicles (Inc.) Review Paper; Gas Technology Services Australia, 2000.
- Wikimedia Foundation Inc., “Net Present Value” retrieved www.wikipedia.org, August, 2013.
Cite this Article:
International Journal of Sciences is Open Access Journal.
This article is licensed under a Creative Commons Attribution 4.0 International (CC BY 4.0) License.
Author(s) retain the copyrights of this article, though, publication rights are with Alkhaer Publications.