Second Northwest Arkansas CNG Station to Receive Funding

The Arkansas Energy Office, a division of the Arkansas Economic Development Commission, has announced new funding that will support a second compressed natural gas fueling station in Springdale.

The $400,000 rebate will go to Kum & Go to assist the company in making compressed natural gas (CNG) available at its location near Interstate 49 and Elm Springs Road.

Kum & Go earlier this year received a grant from the Gaseous Fuels Rebate Program to make CNG available at its location on U.S. 412 (Robinson Road) near the Springdale Municipal Airport. That station is expected to be open by the end of this year.

At the request of some of its members, the Northwest Arkansas Council in April last year established a new strategic action focused on informing public entities and private companies about the cost-saving advantages provided by CNG. Since that time, Council staff has remained in communication with companies, school districts, local governments, state officials and legislators about CNG.

CNG isn't currently available as a public fueling source in Northwest Arkansas, but there are CNG stations in other regions of the state. Stations are operating in Damascus, Conway, Little Rock, North Little Rock, Fort Smith and Jonesboro. A station is being developed in West Memphis.

The latest announcement by the state’s Energy Office includes two other actions that should lead to expanded CNG availability in Arkansas.

The first was a $200,000 rebate to Arkansas Oklahoma Gas Corporation so it can open a second Fort Smith location where CNG is sold.

The second action was the Energy Office making $150,000 available through its Clean Fuel Vehicle Rebate Program.

The rebate program applies to fleet operators for the conversion to CNG/propane or the purchase of a CNG/propane fleet. The rebate amount is dependent upon the cost of conversion or incremental cost of a clean fuel vehicle and allows for a rebate equivalent to the lesser of 50 percent of the conversion/incremental cost or $4,500 per vehicle.

Funds for the program were provided by General Improvement Funds and the Northwest Arkansas Economic Development District in Harrison. There is no application deadline, but the rebates are available only on a first-come, first-served basis.

“The popularity of clean fuel vehicles continues to rise, but more can be done to entice consumers to make the switch to clean fuels,” said Mitchell Simpson, deputy director of the Arkansas Energy Office. “By providing incentives to both fleet operators and fuel stations, there is a better opportunity for alternative motor fuels to take hold.”

For additional information or an application, please visit the Arkansas Energy Office website or call 1-800-558-4567.