Compressed Natural Gas Vehicle Receives DOE Loan Guarantee

The U.S. Department of Energy announced an offer of a $50 million conditional loan commitment to The Vehicle Production Group LLC (VPG). 

The loan commitment will support the development of the six-passenger MV-1, a factory-built wheelchair accessible vehicle that will run on compressed natural gas. The vehicle will be produced at the Mishawaka, Indiana AM General Plant.

As a dedicated compressed natural gas vehicle, the MV-1 will use no gasoline and produce lower emissions than gasoline-fueled vehicles.

Vehicle Production Group estimates that at full capacity, the project will produce approximately 22,650 vehicles per year. Between production, part suppliers, sales and marketing, the project is expected to create over 900 cleantech jobs.

According to VPG, a new American car company based in Miami, Florida, the MV-1 is the only purpose-built vehicle that was designed from the ground up for wheelchair accessibility.

The company also states that MV-1 is the only light-duty vehicle to date that meets or exceeds the guidelines of the Americans with Disabilities Act. The vehicle features a deployable access ramp with a 1,200-pound weight capacity, a 36-inch entryway and an interior that accommodates up to six occupants with the optional jump seat, including a wheelchair passenger and the driver.

The ATVM Loan Program supports the development of innovative, advanced technologies that create thousands of clean energy jobs while reducing the nation’s dependence on oil. The DOE has provided over $8 billion in loans to advanced technology vehicle manufacturers, including Ford Motor Company (NYSE: F), Fisker Automotive, Nissan North America (NSANY.PK) and Tesla Motors (Nasdaq: TSLA).