Electric transportation is still in its infancy and isn’t widely affordable for many logistics companies around the world. However, electric-powered vehicles aren’t the only solution for commercial transport businesses looking to adopt greener initiatives; there’s also natural gas to consider. Is natural gas the answer to sustainability in commercial logistics? It might be – here’s why.

Natural Gas in Commercial Logistics

Compressed natural gas (shortened to CNG) has been used as fuel in consumer vehicles for many years; however, it’s only recently gained traction in the commercial vehicle sector – especially HGVs. Using CNG trucks brings a wealth of benefits, namely a lower and much more stable price point, but particularly reduced emissions compared to conventional fuels like diesel.

What Are the Different Types of Natural Gas?

Natural gas comes in both compressed and liquefied forms.

Liquefied natural gas (or LNG) is less widespread than CNG because it needs extremely cold temperatures, making it more expensive to create, store, and transport. Additionally, LNG poses higher greenhouse gas emissions due to the cooling process it must undergo.

Chemically speaking, renewable natural gas (RNG) is identical to traditional natural gas, except that it’s made from renewable source materials, such as landfill gases, decaying organic matter, and animal waste. Both CNG and RNG also use the same pipeline networks and usually have the same use. When refined, both are the same product – but it’s their source material that defines how carbon intense they are.

Benefits of CNG in Transportation

There are many reasons why commercial transport companies are gradually opting for CNG vehicles. One of the main advantages is that CNG sees less price variability than diesel and gasoline.

Furthermore, CNG burns cleaner than gasoline and diesel at the point of combustion, resulting in fewer greenhouse gas emissions. Although that said, CNG is a fossil fuel that’s primarily derived from large-scale drilling, which entails a significant carbon footprint in itself.

Also, RNG is a renewable natural gas solution since it’s produced from organic matter – including sources like livestock and landfill, among others. What this means is that RNG’s lifecycle emissions are significant; its production repurposes methane gases, which would end up in the atmosphere. The reuse and removal of methane gases in the RNG production process mean this fuel’s overall impact is often net-zero – sometimes even negative regarding emissions.

Challenges of CNG in Transportation

In terms of challenges, CNG adoption as an alternative fuel in transportation has several. One point of issue is that when diesel prices are low, it becomes a more cost-efficient choice over CNG. Moreover, CNG vehicles that operate on natural gas need different engines and fuel stations than conventional diesel vehicles, so the initial investment can be quite high. However, overall, the financial savings of CNG is worth the upfront cost.

Plus, before the crude oil market fell toward the end of 2014, CNG saved about $1 per gallon when compared to diesel at a time when oil cost over $100 per barrel. If oil prices soar in the future, CNG is a practical solution that offers not only cost benefits but also environmental ones.

Until then, more commercial transportation companies worldwide are continuing to adopt CNG into their business model, enjoying savings as well as doing their part to uphold sustainable practices in the industry.