The price at the pump for gasoline and diesel fuel is a major concern for many contrators working in both the landscape and snow removal industries. Last winter in Wayne, N.J., we experienced average fuel prices that ranged from $2.75 per gallon to more than $3 per gallon. While I realize that landscape and snow removal contractors in other parts of the country saw steeper prices, for Canete Landscape and Garden Center those prices translated to about $100,000 in diesel fuel costs alone last year.
Rising fuel prices cut into my bottom line and, outside of limiting the routes and clients my company serves, I was powerless to do anything about it.
Or so I thought.
Two years ago, a heavy-equipment broker turned me on to the possibilities of converting some of my diesel engine trucks over to an alternative fuel mix, mainly using cooking oil in lieu of diesel fuel. I was intrigued by the idea, specifically the cost-savings potential.
Now, the process is not as simple as popping the top on a bulk-size container of Wesson oil and filling up the tank of a ¾-ton plow truck. But it’s not far off.
Before I did anything I first conducted a thorough investigation of the concept and technology, as well as researched and sought out testimonials from business owners around the country who were using alternative fuels. Also, a colleague recommended the site www.dieselsecrets.com, which offered a lot of great information. I then talked one of my snow removal subcontractors into investing into the necessary equipment to convert two of his trucks from diesel to cooking oil for the winter. Seeing the potential in the technology, he agreed.
The conversion involved a $2,000 investment for a secondary fuel tank, heating elements and electrical switching supplies to transfer from diesel to cooking oil while the truck was operating. With some additional searching on the Internet you may be able to find some of the same conversion systems and supplies for less. Besides the additional equipment, the conversion required I cut 20 percent of the cooking oil with kerosene and start and shut down the truck each day with diesel fuel. While this procedure may seem involved, the cost savings was intriguing enough to keep me interested in the technology.
However, after some additional research I located a company selling a specialized fuel additive for about 46 cents per gallon of oil. This additive eliminates the need for the additional conversion equipment. Instead, I can add the oil-additive mixture directly into my diesel trucks’ fuel tanks. In addition, if I find myself out on the job and running low on fuel, I can pull into a service station and fill up with diesel without any adverse effects to my truck. This no-hassle solution is the way to go.
I did strike upon a bit of good fortune during this process. A local restaurant owner was paying an outside company to dispose of his cooking oil. I saw an opportunity here for a win-win situation for both of our operations. I approached the restaurant owner about a possible barter – snow removal services for his cooking oil. He was very receptive to the idea. I collect the oil with a truck equipped with a storage tank and transport it back to my shop where I filter out the impurities so it can be used in my trucks.
This arrangement has proven so successful that in the coming year I plan to make hauling away used cooking oil a side venture in addition to my snow removal and landscape businesses. The side company, which will be run by my garden center manager, will contract with local businesses to collect their cooking oil for a fee – around 25 cents per gallon. I’ll then use this oil as the fuel for my diesel fleet.
To date, I’ve had only positive experiences with using cooking oil as an alternative to diesel fuel in my truck fleet. When using cooking oil, as long as it is filtered correctly, I have witnessed no reduction in power or performance. Likewise, my equipment maintenance manager has observed no ill effects on the trucks or their components.
By next year I plan to convert all of my diesel trucks over to cooking oil and I estimate this move will potentially save my operation $80,000 per year in diesel fuel costs. This cost savings will allow me to invest in future equipment upgrades as well as remove the fuel surcharge language from my service contracts, both of which will give me a competitive advantage in my market. And, at this time, none of my competitors are converting to or experimenting with an alternative fuel.
The only drawback, and a rather humorous one at that, is our truck’s exhaust now smells like a cross between french fries and Chinese food, which, depending on your tastes, may not necessarily be a bad thing.
Tom Canete is owner and president of Canete Landscape and Garden Center in Wayne, N.J. He can be reached at 973/616-5008 or tom@canete.com.
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