Republic Services, Inc. (RSG - Free Report) , the second largest domestic non-hazardous solid waste company in the U.S., expanded its fleet of compressed natural gas (CNG) solid waste collection trucks with the addition of 62 such trucks in Broward and Dade counties.
These new CNG trucks will replace the previously used diesel-powered collection trucks. This initiative by the company will accelerate the total number of natural gas vehicles operating in South Florida to 127.
Pollution is a growing concern in today’s world, and keeping that in mind, the company has been taking initiatives to reduce carbon emission. Being one of the renowned operators of a large vocational fleet in South Florida, Republic Services strives to make a positive impact on the environment. The expansion of its CNG truck fleet on Earth Day is symbolic of the company’s efforts.
CNG emits lower levels of pollutants than diesel in every aspect. Derived from waste material, CNG’s net emission is zero. In fact, renewable natural gas offers a 72–97% well to wheels emission reduction in greenhouse gases as compared to diesel.
Per the U.S. Environmental Protection Agency (“EPA”), the use of each CNG truck is equivalent to planting over 600 mature trees annually. This indicates that Republic Services’huge CNG- powered fleet is equivalent to planting 76,200 mature trees per year. Thus, the company’s efforts are helping to reduce carbon emission drastically in South Florida.
The company serves approximately 117,000 residential customers and more than 10,500 commercial customers with employee strength of over 220. It comprises a CNG fueling station in the Fort Lauderdale area, which is expected to provide support to the company in its CNG fleet expansion drive.
In the U.S., Republic Services operates approximately 2,500 CNG vehicles and 38 natural gas fueling stations. The company’s CNG-powered fleet helps save around 18 million gallons of diesel fuel annually.
Furthermore, on an energy equivalent basis, natural gas is also less expensive than oil. Despite the sharp fall in crude prices, natural gas maintains its cost advantage. So, the conversion of its diesel vehicles to CNG will help the company reduce operational cost, thus improving margins.
Republic Services carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include Quest Resource Holding Corporation , US Ecology, Inc. (ECOL - Free Report) and Waste Management, Inc. (WM - Free Report) . All three carry a Zacks Rank #2 (Buy).
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