DTE Energy has been awarded the grant through Clean Energy Coalition’s Green Fleets program by the US Department of Energy under the American Recovery and Reinvestment Act (ARRA).
The grant will also fund the construction of two new CNG fueling stations and the refurbishment of 11 others in Melvindale and in East China Township.
About 173 brand new Ford service vehicles are being converted by Michigan Consolidated Gas (MichCon) to operate on CNG.
MichCon, a unit of DTE Energy, is matching the grant with $6.8m towards the purchase of the base service vehicles and additional CNG station upgrades.
DTE Energy president MichCon president and COO Jerry Norcia said natural gas vehicles offer a safe complementary technology to gasoline, hybrid and electric vehicles, and they are particularly well suited to medium and heavy-duty applications.
DTE Energy said the natural gas vehicles can produce significantly lower greenhouse gas emissions than diesel or gasoline powered cars and trucks.