CNGVA Offers Resources
The Canadian Province of Ontario is joining Quebec and British Columbia as the third Canadian jurisdiction that has chosen natural gas for medium and heavy vehicles as a key element in their climate change plans. Transportation represents one of the largest challenges Ontario faces in achieving its emission reduction targets. In recognition of this, the Climate Change Action Plan includes an action area that specifically targets low-carbon and zero-emission transportation. The Canadian Natural Gas Vehicle Association (CNGVA) sees major opportunities for natural gas fueled transportation to thrive under proposed incentives.
Ontario, Quebec and British Columbia account for about 68 per cent of Canada’s economy. CNGVA believes there is a market opportunity of 600,000 on-road vehicles for the natural gas vehicle industry across these jurisdictions. As an emissions reductions opportunity these vehicles could contribute between seven and 15 Megatonnes in reductions.
CNGVA explains there are few details currently available from the Government of Ontario, but which include:
- Green Commercial Vehicle Program will provide incentive for emission reductions technologies, including natural gas powered vehicles — $170 million (USD 133 m);
- Natural gas vehicle infrastructure and support – Union Gas; Enbridge Gas Distribution; and the Ontario Trucking Association — $100 million (USD 78 m);
- Support for the implementation of renewable content requirement for natural gas — $100 million (USD 78 m);
- Pilot project for use of renewable natural gas (RNG) in transportation — $20 million (USD 15.7 m);
CNGVA’s Executive Director, Bruce Winchester, describes this as an unprecedented opportunity for the natural gas vehicle industry to access up to $390 million in government funding over a five year period, beginning in 2017.
Based on the assumptions and costs provided by CNGVA to the Government of Ontario, the association says it can estimate the magnitude of this opportunity. CNGVA has asked for assistance with the incremental costs of natural gas vehicles – the extra costs required to equip a vehicle to run on natural gas – on a 50/50 cost sharing basis. CNGVA has also asked for a 50/50 capital cost sharing on the development of new natural gas refueling facilities.
Based on these assumptions, CNGVA points to the following:
- Five per cent of the current medium and heavy duty fleet in Ontario is 7,000 vehicles
- Funding of $220 million would provide incentives that could support the purchase of that number of natural gas vehicles
- Construction of a large natural gas refueling station in Ontario could cost as much as $ 7 million
- Funding of $25 million could support the development of 12 to 16 new refueling stations
This funding could support a significant increase in both the natural gas vehicle fleets and the refueling infrastructure. When combined with the opportunity for federal funding of refueling infrastructure – perhaps as many as two new large refueling facilities could be supported in Ontario – there is a potential for a very robust natural gas refueling coverage in Ontario.
CNGVA has learned from outreach hubs activities that regional and long haul trucking firms are reluctant to adopt natural gas vehicles without clear opportunities for refueling. Of particular interest are the opportunities for serving more than one route or corridor. Trucking firms need flexibility to maximize the return on their fleet investments – with these new funding opportunities the natural gas vehicle industry can build a much stronger case.
Winchester says the industry will have to move quickly to maximize the opportunities for deployment in Ontario. CNGVA has a number of resources that were developed to support national outreach activities, these resources include: Go With Natural Gas website; Go With Natural Gas promotional materials, fact sheets, training materials and videos; and the Go With Natural Gas outreach sessions.
If an organization is interested in accessing these materials or would like to organize an outreach1 session, or would like to discuss any of these items, please contact Bruce Winchester (email@example.com) for more information.
1The Fleet Outreach Hub provides a single point of contact for fleets who are interested in natural gas vehicles including engine technologies, vehicle range, refuelling options, approvals, safety and facility modifications, project implementation, and economic and environmental benefits.
(Sources: CNGVA, Government of Ontario)