Clean Energy Fuels Corp. and the state of Virginia have signed an agreement to expand the infrastructure and vehicles running on compressed natural gas (CNG) as part of a wider alternative fuel initiation for state/local government fleets. Separately, Blossman Gas would help convert vehicles and supply propane and related transportation services.

The two firms were selected from 14 separate bids Virginia received under an alternative fuel vehicle solicitation.

Virginia Gov. Bob McDonnell called agreements good for the state, the environment and ultimately, consumers. Separately he also signed a memorandum of understanding for Virginia to join 22 other states that have issued a multi-state request for proposals (RFP) from U.S.-based automakers seeking up to 1,800 CNG vehicles (see Daily GPI, Aug. 10). The initial response to the RFP is expected soon (see Daily GPI, Oct. 3).

Virginia “owns thousands of vehicles powered primarily by gasoline or diesel fuels blended from foreign oil,” McDonnell said. “The infrastructure created through this effort will be available to fuel passenger vehicles and other commercial fleets.”

Clean Energy has committed to build up to six CNG fueling stations while Mississippi-based Blossman would provide seven propane stations, said the governor Tuesday at the start of the three-day Governor’s Conference on Energy.

Clean Energy recently opened its first CNG station in downtown Richmond, VA, and said it expects to open a second station adjacent to Dulles International Airport outside of Washington, DC. The stations would be open 24 hours a day, seven days a week to the public and fleet vehicles. Clean Energy’s Mark Riley, eastern region vice president, said McDonnell had “put Virginia on a path to a more secure energy future.”

These state contracts ultimately may be used by local municipalities and transit authorities to convert their fleets. Commercial partners also may work with the state to consolidate demand for infrastructure as well, according to the governor’s office. “The executive directive [from the governor] issued sets out the steps state agencies must take to use these contracts and begin converting state vehicles to alternative fuel wherever practical,” the governor’s spokesperson said.

©Copyright 2012Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.