Just about five months after the city of Hamilton opened the Greater Cincinnati area’s first public compressed natural gas station, the Utility Department is getting its first CNG contract customer.
City officials announced Friday that it has signed a letter of intent with Rumpke Waste and Recycling as the first contract compressed natural gas customer for service at the new city-owned fueling station at 2220 S. Erie Blvd.
Public Utilities Director Doug Childs stated in a press release that Hamilton would be partnering with Rumpke, who has been the city’s contract partner on waste and recycling collection for 20 years.
“Hamilton and Rumpke are strong proponents of the economic and environmental benefits of natural gas and its use as an alternative fuel source in vehicles,” he said, adding that the city is seeking other compressed natural gas sale opportunities for commercial fleets and personal vehicles.
Rumpke has been a vocal supporter of the fueling station’s construction since the city broke ground on the property in early 2014, and is currently converting its fleets of trucks to run on CNG instead of diesel fuel, which are filled at Rumpke’s private CNG fueling station in Colerain Twp.
Rumpke officials have called the Hamilton station “an exciting prospect.”
“It offers a back-up solution for our own fueling station,” communications manager Jonathan Kissell previously told the Journal-News. “There aren’t many fueling stations in Southwest Ohio, so having one in Hamilton would be good for us and other trucking companies running on CNG.”
According to the press release, Rumpke will receive a discounted rate on its purchase of CNG at the Hamilton fueling station, equating to 10 percent to 25 percent off the standard CNG price, which is currently $1.99 per GGE (Gasoline Gallon Equivalent). This discount is based upon the volume of CNG that Rumpke uses in a month, and there is also a minimum, “take-or-pay” requirement, where Rumpke is required to purchase a minimum amount or will pay a minimum charge per month.
Under the terms of the proposed agreement, Rumpke will be required to use a minimum of over 2,600 GGE per month, which could provide the city of Hamilton with up to $3,900 in revenue per month. The proposed agreement with Rumpke is for one year, with the option of the parties to extend beyond. The city of Hamilton is also in the process of converting some of its city vehicles to run on compressed natural gas.
Hamilton’s City Council members will decide at Wednesday’s council meeting to approve or disapprove the contract.
The $2.4 million project, which included the station and an enlarged employee parking lot for the Hamilton Municipal Parking Garage, was completed approximately $27,830 under budget. The city received $700,000 for a State of Ohio Congestion Mitigation and Air Quality grant for the station’s use.