Carla Dempsey

Those managing heavy-duty transportation fleets in Indiana are putting the brakes on diesel fuel and transitioning to more sustainable alternatives.

There has been a significant increase in the use of compressed natural gas (CNG) to power trucks, particularly those with high daily mileage such as garbage trucks, delivery vehicles, buses and service trucks. According to the Indiana Office of Energy Development, there were 340 CNG vehicles registered in the state by the end of 2024.

With those numbers expected to continue an upward trend, from legislative mandates and incentives to renewed commitments to environmental stewardship, the use of alternative fuels like CNG for commercial vehicles continues to make sound economic and environmental sense for companies.

Smarter Solutions

CNG comes from the same natural gas that is used to operate gas appliances such as stoves or furnaces to heat homes. For vehicle use, the natural gas is compacted under pressure to reduce volume and allow it to be stored underground in tanks. The result is fuel that burns cleaner than diesel, which means less wear and tear on the vehicle’s engine.

CNG has also been found to be more cost-effective, as the fuel is less expensive than gasoline per gallon. In one case study about CNG-powered refuse fleets released by the U.S. Department of Energy, researchers found that those companies reduced fuel costs by about 50%, resulting in savings of nearly 90 cents per mile. Those savings can have major financial impacts for companies managing fleets that run daily.

Alternative fuels like CNG also emit significantly fewer greenhouse gas emissions into the atmosphere, making it an environmentally friendly option. In April 2025, Gov. Mike Braun acknowledged natural gas as clean energy with the signage of a bill that makes some green and clean energy projects using the alternative fuel eligible for federal funding and incentives.

Indiana in High Gear

State agencies and nonprofit organizations such as Drive Clean Indiana (DCI) have been championing decarbonized transportation in Indiana through several initiatives. In 2024, DCI awarded $5.27 million in grants to the nonprofit’s partners for green fleet initiatives through the Indiana Volkswagen Environmental Mitigation Trust Fund. The awards included funding for three CNG garbage trucks for the City of Gary and 10 CNG trucks for UPS services in the state.

The year before, the Volkswagen grants helped the City of Portage transition their refuse trucks to CNG power. Officials there also received additional funding from the Northwestern Indiana Regional Planning Commission. The city plans to use the funding to implement new trucks and CNG infrastructure through 2028.

Indiana’s larger waste refuse companies, including Republic Services and Waste Management, are also transitioning to CNG. Republic has had a significant CNG truck transition process in place over the last decade. Over the last two years. Waste Management has invested about $97 million in CNG trucks and associated infrastructure in Indiana.

“This investment includes 178 CNG trucks that help provide critical waste and recycling collection across the state. Additionally, approximately $8.1 million was invested in infrastructure, such as CNG fueling stations, at six WM Indiana hauling facilities,” said Mia Jankowiak, director of communications & public affairs for Waste Management’s Great Lakes Area. “As part of this transition, WM has worked to remove over 1,000 older diesel vehicles from our collection fleet.”

Economic Benefits

As fleet management companies continue to draw on the advantages of CNG-powered vehicles, the benefits are also seen in the business and economic development communities.

In addition to improving public health and the environment, the introduction of alternative fuels like CNG can continue to stimulate the economy through job growth in areas such as the manufacturing and renewable energy sectors, as well as increased fuel security for the state.