ACE Hardware Tests Alt Fuel For Truck Fleet
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OAK BROOK, Ill. – June 6, 2005 – Searching for alternatives to reduce use of traditional fossil fuels is gaining in popularity, according to many in the supply chain business. And bio-diesel fuel, a blend of traditional #1 and #2 diesel fuel and soybean and other oil crops, may lead the way along with new hybrid technologies.
Ace Hardware Corp. is taking advantage of the new technologies, starting with its fleet of tractor-trailers. At the hardware cooperative’s retail support center (RSC) in Princeton, Ill., for example, logistics managers recently completed a six-month test of bio blend with bio-diesel supplier Ag View FS and Ryder Transportation Services, which leases trucks to Ace. The bio blend tested is 79 percent #2 diesel, 10 percent #1 diesel and 11 percent crop oil. For warm weather conditions, a different blend will be used: 89 percent #2 diesel and 11 percent crop oil.
“We began talking about bio-diesel fuel as early as two years ago,” said Chuck Angela, logistics manager for Ace’s center in Princeton. “Once we determined that the tractors we use could operate on either conventional or bio-diesel fuel, we were ready to roll, so to speak.
“The test has proven that bio-diesel is a financially viable alternative to conventional fuel, and we came through the winter months with no gelling or freezing,” he added.
Ace now plans to increase usage of bio-diesel fuel in other tractors operating from the Princeton facility and may expand the program to its 14 other RSCs. The cost savings along with fewer emissions are key among incentives.
Kevin Cassidy, general manager for Sapp Brothers Truck Stops in Peru, Ill., and supplier to truck drivers and companies in the area, said the idea is catching on. “Since we added bio-diesel fuel, we haven’t seen any ill effects,” he noted. “Some customers have seen an increase in power and an increase in efficiency.”
On average, bio-diesel users are expected to see between _- and _-mile per gallon increases in efficiency. “For a tank that holds from 100 to 150 gallons of fuel, and in this industry in general, that translates to major savings,” added Cassidy.
Illinois currently offers sales tax breaks on purchases of bio-diesel fuel, thereby offering users additional savings. If the blend contains 11 percent or more crop oil, the 6.25 percent sales tax is waived. The federal government instituted an additional $09.9 per gallon tax credit in January 2005 as well.
Ace has incorporated additional ways to help ease the price at the pump and to lower emissions among its fleet by placing six Toyota Prius hybrid automobiles to evaluate and analyze that new technology.
“Ace is making a concentrated effort to explore the hybrid market and match the technology to our needs,” said Paul Motylinski, director of distribution and transportation for Ace. “We are currently on the waiting list for the Ford Escape hybrid, which we will evaluate for its efficiency.”
Toyota Prius cars burn less fuel – the manufacturer indicates that the EPA-estimated combined city/highway average rating is 55 miles per gallon. Since the introduction of the hybrid vehicles into the fleet in May 2004, Ace has used 1,080 fewer gallons of fuel.
Though that translates to approximately $2,430 in cost savings, “the more significant benefit is in the lower emissions as a result of burning so much less gasoline,” said Motylinski.
“Ace plans to continue to test different vehicles and other alternatives to minimize our dependence on fossil fuels and to contribute to a cleaner Earth,” he added.
Ace Hardware Corp. is the largest retailer-owned hardware cooperative in the industry. Annual retail sales for Ace’s hardware, home center and lumber and building materials locations top $13 billion. Headquartered in Oak Brook, Ill., Ace currently operates 15 distribution centers in the United States and its retailers’ stores are located in all 50 states and 70 countries. More information on Ace can be found at www.acehardware.com.
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