Canadian NGV industry and the Government release new vehicle deployment roadmap

June 5, 2019. The Canadian Natural Gas Vehicle Alliance (CNGVA) announced the release of a new report titled: Natural Gas Use in the Medium and Heavy-Duty Transportation Sector.

Following extensive consultations with the natural gas vehicle (NGV) industry and fleet users, this updated report builds on the observations and recommendations of a 2010 report: Natural Gas Use in the Transportation Sector. This revised report incorporates updated information on natural gas supply including: an extensive section on renewable natural gas (RNG); information on technical developments as well as codes and standards developments; and examples of significant fleet successes to date.

   Report Observations:

·         The use of natural gas as a transportation fuel can offer significant emission reduction benefits, with up to 25 per cent GHG emissions reduction potential depending on the vehicle and fuelling system being used. The emergence of renewable natural gas (RNG) provides added emission reduction benefits for the transportation industry.

·         Significant use of NGVs by refuse, transit and trucking firms, as well as the use of natural gas as a fuel option by marine carriers, illustrate the market's readiness for the technology in Canada and the potential for both cost and emissions' savings.

·         There is a strong business case for NGVs in Canada. Natural gas costs remain stable, and high fuel usage fleets can benefit from cost savings. Additional regulatory measures favour the emissions' reductions associated with NGVs accentuating the business case.

·         Abundant supply of geological natural gas and the growing supply of RNG point to continued price stability and enhanced life-cycle emission reductions.

·         Extensive Original Equipment Manufacturer (OEM) engine offerings for the on-road market, as well as a growing number of specialty off-road and marine engines, are being used by Canadian transportation fleets.

·         More industry and government support is needed to help fleets defray risks, including:

o    Up-front vehicle cost premiums;

o    Greater access to re-fueling facilities to improve reach in the transportation sector;

o    Maintenance facility upgrades for both fleets and vendors;

o    Capital investment to enable production, processing, blending and connecting RNG supply to existing pipelines;

o    Stronger outreach tuned to the needs and concerns of various fleet users; and

o    Investments in R&D efforts, including collaborative partnerships with all levels of government, other countries, and research institutions.

   The revised Deployment Roadmap provides a good point of departure for the industry and prospective fleet adopters to understand the opportunities that NGVs offer. Much like the 2010 report, Natural Gas Vehicle Use in the Medium and Heavy-Duty Transportation Sector is a starting point for a renewed industry-government effort to support deployment, cost, and emissions savings for Canadian fleets.