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A Perfect Guide to Strategic Procurement Process for Clean Energy Fuels

Aug 23, 2018

Clean energy fuels are modifying the way the world fuels its vehicles. Minimizing pollution from the transportation industry is one of the important objectives for every nation today and every corner of the globe is just trying to figure out how realistic and attainable that goal is with the aid of clean energy fuels. These fuels are abundant and economically viable. Every country around the world is increasingly adopting these fuels for improving the health of the planet. Additionally, augmenting fuel costs and concerns for the environment and energy inContact USdependence and its conservation are a few things that come on the top of the priority list of every nation. Reduction of carbon footprint and greenhouse gas emission is a priority worldwide, and all these factors contribute to the rising popularity of these fuels. But let’s pause a bit before digging deeper and understand the fundamentals of clean energy fuels.

What are Clean Energy Fuels?

Fuels that are derived from renewable and zero emission sources are termed as clean energy fuels. These are derived from natural processes that can be regenerated in a short span of time and cannot be depleted. The most common clean energy Fuels are ethanol, natural gas, electricity, propane, hydrogen, biodiesel, methanol and P-series fuels.

Clean Energy Fuels 

Ethanol

It is derived through the fermentation and distillation of crops such as corn, barley, or wheat. It is then blended with gasoline to enhance the octane levels and emission quality.Request Demo

Natural gas

Natural gas is found in deep below earth reservoirs, landfills, ocean floors, or other waste sources. Natural gas is formed by the decaying of organic matter and comes largely from plant and animal remains.

Electricity

Electricity can be used as an alternative fuel for transportation for fuel-cell vehicles and battery-powered electric vehicles.

Propane

Propane is also called as liquefied petroleum gas, or LPG, which is a byproduct of crude oil refining and natural gas processing. Propane is widely used as a fuel for cooking and heating and is also one of the very popular alternative fuels for vehicles.  

Biodiesel

Biodiesel is popularly used as an alternative fuel. It is based on vegetable oils or animal fats that arerequest proposal recycled after restaurants have used them for cooking. Biodiesel can be blended with petroleum diesel and used in engines that are unmodified.

Methanol

Methanol is one of the clean energy fuels that is also known as wood alcohol. It can be used as an alternative fuel in fuel vehicles that are flexible.

P-series fuels

P-Series is one of the clean energy fuels that is a blend of ethanol, methyl tetrahydrofuran (MeTHF), and natural gas liquids – a co-solvent derived from biomass. These fuels can also be used in flexible fuel vehicles.

Here is the complete guide for the procurement process for clean energy fuels:

Procurement process 

Defining Goals

When it comes to the procurement process of clean energy fuels for an organization, setting clear goals is very important. There are a few questions, which an organization must consider while procuring clean energy fuels, such as:

  • Why is the organization considering purchasing these fuels?
  • What are the expectations of the organization from it?
  • What are the important selection criteria for the organization? (e.g. resource type, visibility, independent certification and verification, low involvement, and low cost)
  • Does the organization have significant experience and expertise in clean energy procurement and management?

An organization’s goals in the procurement process will be driven by its motivations for procuring these fuels. These questions will facilitate management objectives and stakeholder inputs for fulfilling the objectives.

Key Decision-makers must be identified

Identifying key decision-makers is very important for the organization. These decision makers can approve the procurement process of these fuels. They will Contact USalso assess the fuel market data to identify options that are feasible.

Collecting clean energy fuels and facility data

The next step in the procurement process of clean energy fuels involves collecting reliable data for developing goal metrics. It also helps in the management and opportunities of clean fuels in the procurement process for better efficiency. Such data is important to check whether the organization is interested in procuring clean energy fuels or pursuing off-site or on-site self-generation.

Choosing ‘green’ clean energy fuels

The final step in the procurement process of these fuels is to determine the clean energy solutions that meet the organization’s objectives. Also, an organization functioning at multiple locations must determine whether to procure clean energy fuels from one supplier for all their operations, or from different suppliers for each site. Selecting only one supplier tends to reduce complexity and transaction costs associated with multiple contracts; whereas, selecting an individual supplier for each site might increase utility bill savings.


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