Natural Gas Could Be The Future Of Trucking |
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Steven Johanssen
11 December 2012
A growing number of transportation companies are considering switching to natural gas. Despite the current challenges associated with refueling and the significant initial costs, many companies are looking at this alternative to diesel. Safer on the environment and cheaper, it could be the preferred fuel of the transportation industry in the near future.
Natural gas is abundant in Canada and is therefore cheap. In fact, we currently sit on about 100 years of supply. Gas producers are looking at new markets for their product and are turning their sights on truck companies. The cost of fuel has always been a challenge for long-haul transporters. Natural gas is cleaner and is less expensive than gasoline or diesel and the transportation industry is beginning to take notice. It is now available in a few gas stations across the country.
The United States is already establishing a significant infrastructure network to address the growing demand for natural gas. In fact, by the end of 2013, there will be over 250 gas stations supplying this transportation fuel. Trucking companies are taking notice whereas less than two years ago, no one was talking about this product.
When you take into consideration the growing demand for diesel from China and India, it is no surprise that the trucking world is becoming worried about the supply levels. More demand from these two very populous countries is also driving up the prices.
Natural gas fuel is available in two forms, compressed natural gas (CNG) for light vehicles and liquefied natural gas (LNG) for heavy trucks. Despite the fact that natural gas is about 40% cheaper than diesel, not everyone is convinced it will replace traditional fuel. Because the LNG tractors are not yet being mass produced, the cost is about $90,000 higher than for a diesel-powered one. Also, the tractors are heavier and may not work for companies that carry payloads that are close to the legal highway limits.
Unlike petroleum and diesel, natural gas burns cleaner which means that the maintenance costs are reduced and the life of the vehicle is extended. Also, this cleaner burning fuel reduces harmful emissions significantly making it a more environmentally friendly alternative. Another great positive is that natural gas can be renewed. It can be derived from methane gas produced by trash.
Certain provinces have government incentives in place to help companies offset the additional costs associated with the LNG tractors. If more provincial governments were to create similar incentives, it would speed up the conversion of more truck fleets.
There may be more demand initially for CNG vehicles that can return to the warehouse at the end of the day to refuel. But as more infrastructure becomes available and more truck manufacturers begin offering LNG tractors, the long-haul segment will grow as well.