ThyssenKrupp Elevator Rides Propane Autogas to the Top

ThyssenKrupp Elevator, the nation's largest producer of elevators in North America, knows the ups and downs of running a successful business. With more than 13,500 employees, more than 200 branch and service locations, and annual sales of more than $2.7 billion, remaining on top means being fiscally, socially and environmentally sustainable, even during the toughest times.

In 2010, ThyssenKrupp Elevator's fleet department started evaluating alternative fueled vehicles to explore ways to combat rising fuel costs, and to learn which fuels were sustainable now and for the next generation. Their quest resulted in the development of a protocol for analyzing alternative fuel vehicles - one that is service as a model for other companies seeking to make the switch.

The 'Five C's' Protocol
 

"We are challenged in today's marketplace to go green," said Tom Armstrong, director of fleet at ThyssenKrupp Elevator. "We were determined to reduce our fuel consumption and find sustainable vehicles that worked for us. With all the alternative fuel choices available today, we needed a tool to effectively analyze and justify each fuel or alternative fuel vehicle type."

The "Five C's" protocol of analyzing alternative-fueled vehicles was created:

• Is it clean?
• Does it conserve?
• Is it cost-effective?
• Does it make common sense?
• Can you commit?

According to Armstrong, the only product that qualified for all “Five C’s” was propane autogas. “When we laid out all the fuels available, including propane autogas, ethanol, biodiesel, compressed natural gas and electric, there was only one alternative fuel source that had a check mark in all five categories, and that was propane autogas,” explained Armstrong.

Propane autogas is clean, emitting up to 25 percent less greenhouse gasses, about 20 percent less nitrogen oxide, and up to 60 percent less carbon monoxide when compared to gasoline. Research shows propane autogas yields 60 to 70 percent less smog-producing hydrocarbons and 50 percent fewer toxins and other smog-producing emissions, especially important for areas with large population densities. In fact, the environmental benefits of using propane autogas have enabled ROUSH CleanTech trucks and vans to meet Environmental Protection Agency and California Air Resources Board certification requirements.

According to Armstrong, ThyssenKrupp Elevator’s Phoenix-area service vans travel, on average, 25,000 miles each year. This means that for each vehicle purchased, ThyssenKrupp Elevator is reducing its carbon footprint by 12,237 pounds of carbon dioxide each year for a total of more than 67 tons annually across the 11 vehicles already in use.

From well to wheel, propane autogas conserves natural resources by being a domestically produced fuel that is a byproduct of natural gas processing and petroleum refining. About 90 percent of all propane used within the United States is produced in this country. Additionally, propane autogas is safe, non-toxic and will not contaminate surface or groundwater sources in the event of a spill. Armstrong estimates the company will displace more than 2,000 gallons of gasoline each year per vehicle by switching to propane autogas.

As for cost effectiveness, Armstrong said the average price for gasoline has hovered around $3.75 per gallon (gasoline prices are based on ThyssenKrupp documentation in 2011), while the company’s price for propane autogas per gallon averaged $2.30 per gallon.  This alone provides over $35,000 in annual fuel cost reductions to the company’s bottom line across the 11 vehicles in Phoenix. Armstrong’s propane autogas vehicles also incur lower maintenance costs because the fuel burns cleaner in engines than gasoline and diesel, experiences significantly less carbon build-up and has the potential for increased engine life.

“The return on investment for the propane autogas vehicles in Phoenix should be roughly two years. With an estimated six-year vehicle life, this means that for the other four years we keep these vehicles in operation, we’ll see a positive return on our investment,” said Armstrong. “Our cost benefits in this region are tied not only to lower fuel cost, but lower vehicle registration and high occupancy vehicle lane access. Grants could easily improve a company’s rate of return, and we look forward to applying for these incentives in future markets.”

With so many pluses, common sense pointed the company to commit to propane autogas.

Stepping Aboard with ROUSH CleanTech
 

The path to propane autogas was methodical and well researched by ThyssenKrupp Elevator. The fuel met all the needed requirements, but as the company started its migration away from foreign oil, a new set of concerns arose.

“Once we decided on propane autogas, our next challenge was to identify the best partner for our propane conversions,” said Armstrong. “We needed a quality tier-one supplier committed to our long-term sustainable goals, which meant the product needed to be safe, and it needed to be supported by the vehicle manufacturer and not void of any manufacturer warranties. ROUSH CleanTech surfaced as our best solution and business partner.”

Today, the company is running eight ROUSH CleanTech Ford E-150 vans and three ROUSH CleanTech Ford F-150 pickup trucks. They have six more Ford E-150 vans and two medium-duty Ford F-450s chassis cab trucks on order. By second quarter 2012, ThyssenKrupp Elevator will have 19 propane autogas vehicles, which equals one-third of their fleet in Phoenix, running on this clean-burning alternative fuel. Their commitment to propane autogas extends farther west, with six Ford E-150 vans on order for Seattle, eight for Los Angeles, and 10 for San Diego.

Currently offered through authorized Ford dealerships around the country, the ROUSH CleanTech propane autogas fuel system delivers the same factory Ford performance characteristics and serviceability with a 5-year/60,000-mile limited warranty.

“For more than 35 years, ROUSH Enterprises has developed experience in OEM-level automotive engineering, design, manufacturing, certification and assembly,” said Joe Thompson, president of ROUSH CleanTech.“ROUSH CleanTech takes that experience and quality to the world of alternative fuels, delivering a ‘zero compromise’ alternative to gasoline and diesel.”

Opening the Door to Publically Accessible Refueling Infrastructure
 

At ThyssenKrupp Elevator, the company’s drivers are assigned dedicated vehicles, which are taken home each night and always available for customer emergencies. With 475 square miles alone in Phoenix, not counting its serviceable metro area, refueling infrastructure had to be plentiful and strategically placed.

“Since our vehicles go home with our drivers, adequate local fueling infrastructures are required for each city in which we select to use the propane autogas vehicles,” said Armstrong. “We partnered with Ferrellgas in Phoenix to develop infrastructure, and they did a great job of delivering for us before the first trucks even hit the road.”

The process included entering the home address of each driver into a system that Ferrellgas reviewed and then used to map out exactly where propane autogas fueling sites were needed. Ferrellgas upgraded 6 refueling stations throughout Phoenix to be 24-hour accessible, driver-operated, and equipped with a credit-card swipe machine. These features give ThyssenKrupp Elevator’s fleet drivers the convenience and ease-of-use that they’re used to when refueling with more traditional fuels like gasoline or diesel.

Initial results have been promising, Armstrong reports, and will be used as background data to expand propane autogas vehicles to other cities that either currently have or will be improving their propane autogas fueling infrastructures. Currently, there are about 2,500 public propane autogas refueling stations across the nation.

Doors Open to Other Markets

ThyssenKrupp Elevator has implemented many green initiatives, such as using GPS dispatching for service vehicles to minimize mileage and improve customer response times; providing unrea-formaldehyde-free elevator cab interiors; and developing regenerative-drive technology that uses gravity to regenerate energy and feed it back into the building.

According to Armstrong, the company is committed to leaving behind a sustainable future for the generations to come by operating a green fleet that minimizes impact on precious natural resources, conserves financial outputs related to fuel costs, and builds a foundation for moving their successes to other markets they serve.

“We have the best-kept secret in the industry, and we are changing the secret part,” said Thompson. “Propane autogas is quickly becoming the gold standard by which other alternative fuels are measured. Fleets across North America are deploying propane autogas vehicles because they make economical and environmental sense.”