What’s behind the growth of the natural gas generator market?

Posted by Jack Barry on Mon, Jun 30, 2014

natural gas generator market growsHave you tried looking for a used natural gas generator recently? No one is letting them go. Even new equipment is sometimes on backorder as manufacturers struggle to keep up with increased demand.
There are many reasons why natural gas generators are predicted to produce about $10 billion in revenue in 2018, including stricter emissions standards that are stymying diesel equipment. Availability of natural gas, lower prices, and advantages for storage all factor into the growth in popularity.
Here is a closer look at what makes the natural gas generator so appealing:

  • More stringent emissions regulations
    Tier 4 standards for non-emergency, diesel-powered power generators have been going into effect from 2013 through 2015, forcing non-compliant companies to make some hard decisions about how to move forward. One option is to look more closely at a natural gas generator, as methane and propane don’t face the emissions standards as diesel-powered equipment built for primary use.

  • Greater natural gas availability
    Do the increased efficiency and reduced environmental impact of natural gas drive its development and increased use? Or is it vice versa? It’s both, really. But as natural gas resources become more plentiful, especially in North America, this is driving the price of the fuel down, making it even more attractive.
  • Other natural gas generator advantages
    For larger operations that store large quantities of fuel – and even for mid-size to small operations looking to keep emergency reserves on hand for emergencies – natural gas offers a distinct advantage. Methane and propane are both safer to store and they boast a longer shelf life than diesel. 

There are many operational considerations to weigh when deciding whether the shift to a natural gas generator is right for your outfit. For example, you may have already been proactive in purchasing diesel equipment that was future-proofed for the new emissions standards years ago. But there is no doubt that your peers and competitors are grappling with the decision, too.

Sources:

http://www.businesswire.com/news/home/20130212005210/en/Natural-Gas-Generator-Set-Market-Reach-10#.U2j-Q5UU_IU

http://press.ihs.com/press-release/energy-power/ihs-natural-gas-price-advantage-creates-opportunities-greater-use-and-con

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Tags: Natural Gas Generators, Natural Gas

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