Military Alternative Fuel Fleet Spending to Hit ‘$926m by 2020’

Navigant Research alt fuel military vehicles

by | Jul 8, 2013

Navigant Research alt fuel military vehiclesUS military spending on alternative-drive vehicles for the non-tactical fleet will increase from more than $435 million in 2013 to $926 million by 2020, Navigant Research forecasts.

This includes hybrid electric vehicles (HEVs), plug-in electric vehicles (PEVs) and ethanol-powered vehicles, as well as vehicle-to-grid (V2G) technology.

A majority of the growth will be made through spending on HEVs and PEVs, the report says.

The US military is the largest single consumer of energy and fossil fuels on the planet. Estimates place the total energy consumption of the Department of Defense to be on par with the state of Oregon and greater than two-thirds of all countries.

To capture the economic, environmental and strategic benefits offered by alternative fuels, the military is investing heavily in various types of alternative drive vehicles. Some 55 percent of the military fleet can run on alternative fuels, Navigant Research says. However, according to the US General Services Administration, gasoline accounts for about 70 percent of the non-tactical fleet’s fuel consumption.

The report forecasts annual fuel consumptions in the non-tactical fleet will decrease by a 2.5 percent compound annual growth rate as the military increases its use of alternative fuel vehicles. This translates to more than 81 million gasoline gallon equivalents (GGEs) this year to less than 70 millions GGEs in 2020.

Near-term strategies are focused on the adoption of microgrids, ADVs, and V2G technologies within the military’s non-tactical vehicle fleet. By the end of the year, the military plans to spend $20 million to test a fleet of 500 V2G enabled trucks and buses, the report says.

In April, the GSA said it will expand the number of hybrid vehicles in the federal fleet by up to 10,000 vehicles, resulting in the reduction of about 1 million gallons of fuel per year for the life of these vehicles. The GSA fleet consolidation initiative moves the federal government closer toward its goal of buying 100 percent light-duty alternative-fuel vehicles by the end of 2015, a GSA spokesperson told Environmental Leader.



Stay Informed

Get E+E Leader Articles delivered via Newsletter right to your inbox!

Share This