September 19, 2024
The Future of Fleets: A Focus on LNG
Emissions from transport have been on the rise since 2021, nearly rising back to pre-pandemic figures, with heavy goods vehicles (HGVs) being the second largest contributors, only behind cars, responsible for 28% of climate emissions from road transport in Europe, while accounting for only 2% of vehicles on the road.
The natural increase in HGV and long-haul fleet deliveries means many companies are starting to look at alternative fuels to reduce the emissions produced. Liquefied natural gas (LNG) could be that solution and many may not realize some fleets are already incorporating LNG vehicles for both general transport and deliveries.
Why Should Fleet Owners Invest in LNG?
LNG is a natural gas that has been reduced to a liquid state through a process of cooling, and it is the cleanest burning fossil fuel, as it produces 40% less carbon dioxide than coal and 30% less than oil. Another benefit is that LNG can gradually be replaced by Bio-LNG, which emits 85% less CO2 than diesel and is a key solution in minimizing emissions from HGV sector. With LNG being clean burning and bio-LNG being created from organic waste, CO2 emissions can be reduced by up to 85% to 100%. So, although natural gas is still an abundant resource that can be utilized, LNG enables transport companies to seamlessly transition to an alternative fuel source, which is better for the environment and will enable them to meet global decarbonization goals.
For HGV drivers, LNG doesn’t take away from the driving experience or the performance of the vehicle but in fact offers one very important positive: they are compliant with current and expected future emission standards. Not only will this mean that vehicles powered by LNG should be able to enter environmental zones toll-free, but they will also play a huge part in delivering a net zero 2050.
One additional benefit is LNG engines are 50% quieter than diesel engines, meaning they’re within territory for a peak quiet certification for a Truck in Silent mode of 71dB(A). This means loading times can be more flexible to provide a greater quality of life in city centres and reduce costs associated with day deliveries and traffic jams for fleet owners, as well as being an improvement for late-night deliveries to not disturb quieter areas.
How Can LNG Positively Impact Fleets?
Transitioning to LNG can positively impact fleet business in several ways. Firstly, LNG engines often boast a longer lifespan than traditional diesel engines, enhancing the overall durability of a fleet. The gas is also readily available, with a growing network of LNG refueling stations worldwide, the majority of which are in Western Europe and Asia, ensuring operations are less likely to face disruptions due to fuel shortages.
“LNG infrastructure may be embryonic, but it is fast growing. There are around 725 LNG stations on the continent, with the bulk concentrated in Western Europe, and its cost-competitive benefits means it has strong potential for commercial transport,” said Lise-Lotte Nordholm, Vice President and General Manager of clean energy and global platforms at DFS, in an interview for Fuel Oil News.
LNG is especially well-suited for long-distance road freight transport, given the limited availability of alternatives to diesel in this case. Moreover, its familiar and fast refueling method, which is very similar to diesel, should appeal to drivers. With the emergence of reliable and convenient refueling units, such as the compact LIQAL LNG Mobile Refueling Unit (MRU) that Gasrec has incorporated to suit numerous locations, it becomes easier for fuel retailers to implement clean energies with minimal work or additional costs, and this can even be in addition to conventional fuel dispensers at larger service stations, to cover a multitude of drivers.
The Future of LNG for Fleets
As the EU transitions towards its intermediate target of a 55% reduction of net-emissions by 2030, ‘transitional fuels’ (like LNG) will likely play a large part in everything from long haul transport to powering our home deliveries.
A transitional fuel, in contrast to conventional fuels such as oil-derived petrol and diesel, are any types of fuels which contribute to FIT reduction targets. The shift towards LNG being incorporated into transport logistics strategies, as a transitional fuel, marks a much wider evolution in the way the transport and shipping industry approaches its fueling. Although LNG stations require CAPEX investments, which can be relatively high when compared to petrol or diesel, high volumes of LNG can be sold to many trucks, when compared to EV and H2 infrastructure.
According to the European Commission, LNG development into a global commodity can improve the security of energy supply in general by boosting the use of natural gas as fuel for transport. LNG provides a long-term solution, as The International Energy Agency predicts there are enough resources to last 230 years if consumption remains at current levels.
“With its environmental advantages, cost-effectiveness, and positive business impacts, (Bio) LNG is on the way to becoming one of the most in-demand fuels globally for heavy-duty transport, alongside hydrogen. It can contribute to future energy security measures and facilitate the worldwide transition to decarbonize major carbon-emitting economies. We’re witnessing the evolution of the consumer experience in fueling and convenience retail,” concluded Joost Jansen, Business Development Manager at DFS.
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