Blog Compressed natural gas will save the company millions.

The vehicle fleet of MOTOR JIKOV Group a.s. has been expanded with 6 Passat Variant TSI EcoFuel cars powered by compressed natural gas (CNG). The Czech company is very closely connected to CNG. Its subsidiary, MOTOR JIKOV Strojírenská a.s., has been manufacturing small refueling stations in Soběslav since 2010, enabling the benefits of CNG operation even in areas where no public refueling stations currently exist.

Environmental and financial factors play a significant role here. Modernizing the fleet will reduce CO2 emissions by about 65 tons annually compared to current levels, and the annual savings on fuel costs for using CNG in approximately 40 percent of personal and commercial vehicles and forklifts could reach up to CZK 2 million. After a complete fleet renewal over two years, the projected savings could total up to CZK 4 million annually.

The company trucks fuel at its own CNG stations in Českých Budějovicích and Soběslavi. "A small CNG refueling station is an ideal solution for cost-efficient vehicles used by tradespeople and entrepreneurs, such as bakers serving specific regions. We also offer them to larger entities, because they can be combined into various configurations as needed. That’s a major advantage. For example, two stations side by side with an integrated quick-fill tank. Our own company demonstrates that this system truly works, as we can seamlessly service our entire fleet," says Miroslav Dvořák, CEO of MOTOR JIKOV Group a.s.

With the increasing number of public refueling stations, one might expect a rising interest in fuel-efficient CNG cars. However, progress hasn't been as smooth as initially anticipated.

"The issue is that the number of public refueling stations in the Czech Republic is growing slowly – currently only 34 are operational. In comparison, Austria has around 300 stations. The Czech Republic is at about ten percent, and a full national network covering the entire country is still a long way off," explains Miroslav Dvořák.

This gap presents a strong business opportunity for Motor Jikov. Its CNG refueling stations aim to fill the market void. "Recently, we have observed increasing interest, albeit still only in dozens of units. But the progress is evident," says Jiří Slíva, director of MOTOR JIKOV Strojírenská a.s. By 2012, the company plans to manufacture two hundred mobile refilling stations.

The rising demand for CNG is also confirmed by Martina Kudláková, fleet manager at Volkswagen – Passenger Cars, Volkswagen Group Import. "The number of CNG vehicles sold is increasing year by year. In the first nine months alone last year, we sold 38 CNG cars; this year, that number has already reached ninety. About 70% of these are Passats. It’s a vehicle for managers, and if a company wants to build an eco-friendly image, it starts with managers – and CNG is a perfect opportunity. I believe this trend will grow as more refueling stations appear. We are therefore seeking cooperation with gas companies, such as E.ON," Kudláková states.

The fuel economy is roughly 50%, with additional savings from exemption from road tax. Cost calculations show that driving 1 km on CNG costs about CZK 1. But trust in this fuel remains a problem.

This is confirmed by Dvořák, who notes that many still associate the term "gas" with explosions. In reality, compressed natural gas (CNG) is different from propane-butane, i.e., LPG. People often confuse the two and do not distinguish between types of gases. "That’s probably logical. Gas is perceived as dangerous, toxic, and explosive. But that’s not entirely true. It’s mainly a matter of information, so people understand what CNG really is, because even some experts sometimes confuse CNG with LPG," says Miroslav Dvořák.

Motor Jikov has showcased refueling stations in Germany, where over a thousand gas stations are actively supporting gas vehicle use. Its new partner there is Schwelm Anlagentechnik, which holds a 50% stake in the development of public refueling stations. In turn, Motor Jikov represents Schwelm in the Czech market.

"Our small refueling station is the key to integrating Schwelm’s offerings into the German market. This opened the door to cooperation in the Czech Republic, where we can now also offer large refueling stations," explains Slíva. This collaboration effectively complements both companies’ portfolios, and they already presented together at the NGV (Natural Gas Vehicles) exhibition in Berlin.