AT&T is abandoning reliance on gasoline and diesel as motor fuel for its corporate fleet of vans and passenger vehicles.

The main fuel will be compressed natural gas (CNG) when the changeover’s completed in 2019. And, the company will get credit for cutting greenhouse gas (GHG) emissions because CNG produces 25% fewer global warming emissions than gasoline-powered engines.

The company says it will invest $565 million over the next ten years to switch to alternative fuels to power its 15,000 vehicles.

At least 8,000 of AT&T’s vans will run on CNG while another 7,100 corporate passenger vehicles will run on other alternative fuels, CEO Randall Stephenson announced March 11. The company hopes to put nearly 800 alternative fuel vehicles (AFVs) on the road this year.  Most will run on CNG while others will be hybrid-electric vehicles.

AFVs do cost more than standard gasoline- and diesel-powered ones, but AT&T says lower fuel costs will offset the up-front investment.

The AT&T switch to CNG and alternative motor fuels will be the nation’s largest investment in AFVs. United Parcel Service and California power company, PG&E Corp., have been putting CNG vehicles into service for several years.

When the switch to alt fuels is complete, the telecommunications giant can claim credit for reducing 211,000 metric tons of carbon dioxide emissions. The company also plans to grab as much green PR as possible with a prolonged print and TV ad campaign. It will also plaster its vehicles with green technology logos.

T. Boone Pickens, who promotes use of natural gas, solar and wind power as alternatives to imported foreign oil, calls AT&T’s switch to CNG a game changer for the alternative fuels industry. “When other fleet operators put their transportation teams on this, you’re going to see a major shift away from imported diesel and into domestic natural gas,” he says.

Pickens stands to gain in the deal as a natural gas supplier. His company, Clean Energy, already supplies a network of CNG refueling stations in the Southwest. His plan is detailed here.

Tags: AFVs, alternative fuels, AT&T, CNG, GHG emissions, T. Boone Pickens