Commercial vehicle drivers wait to refuel at a compressed natural gas fuelling station in Calgary, Alta., Tuesday, Oct. 22, 2024. THE CANADIAN PRESS/Jeff McIntosh


October 23, 2024 Tags:

CALGARY— Two new compressed natural gas (CNG) fueling stations have opened in Alberta to help heavy-duty trucks transition from diesel, aiming to lower their environmental impact. Located in Calgary and Grande Prairie, these stations complement an existing one in Edmonton, marking the beginning of what is expected to become Western Canada's first commercial-grade public CNG fueling network.

This initiative is being developed by Tourmaline Oil Corp., Canada's largest natural gas producer, in partnership with Clean Energy Fuels Corp. from California. Last year, the two companies entered into a $70 million agreement to establish up to 20 CNG fueling stations across Western Canada. Once completed, this network could provide fuel for around 3,000 natural gas-powered trucks each day.

At the grand opening of one station, Clean Energy Fuels CEO Andrew Littlefair noted the strong interest from trucking fleets in Calgary and surrounding areas. "Companies want to do the right thing for the environment, but it has to make economic sense," he explained. Natural gas, while still a fossil fuel, is seen as a more environmentally friendly option compared to diesel, producing about 20% lower CO2 emissions. Transitioning a single semi-truck from diesel to CNG can equate to removing up to five passenger vehicles from the roads.

CNG also generates fewer harmful pollutants, such as nitrogen oxides and particulate matter, than traditional diesel engines. The long-haul trucking sector is exploring various ways to cut its greenhouse gas emissions. Clean Energy, which operates over 600 fueling stations in the U.S., is a leading provider of renewable natural gas (RNG) made from organic waste. According to Littlefair, switching from diesel to RNG can reduce carbon emissions by an average of 300%. However, Canada has lagged behind the U.S. in developing an RNG industry and the necessary infrastructure.

Littlefair emphasized that, in the interim, natural gas serves as a viable "bridging" solution until cleaner technologies become more widely available. He acknowledged that there is no one-size-fits-all approach and that different technologies, such as electricity and hydrogen, may become more suitable in the future.

Tourmaline CEO Mike Rose pointed out that CNG is particularly advantageous for Western Canada due to the region's abundant, easily accessible, and affordable natural gas supply. Since its launch in Edmonton over a year ago, the fueling station there has attracted nine heavy-haul trucking companies as clients.

Cummins, a leading engine manufacturer, recently launched its X15N natural gas engine in the North American heavy-duty truck market, which is expected to encourage more companies to adopt CNG. Major retailers like Walmart, UPS, and FedEx are already testing these engines in their fleets. "This will rapidly evolve into a significant new segment," Rose stated. "The new engine technology is here, and we're going to scale it up."

Mullen Group Ltd., one of North America's largest logistics firms, currently operates 19 CNG trucks and plans to add another 15 as they become available. CEO Murray Mullen mentioned that while natural gas engines cost about 30% more than traditional diesel engines, the price of CNG fuel is lower than retail diesel. He added that the natural gas trucks in their fleet have been performing exceptionally well. "Compressed natural gas is viable, competitive, and beneficial for the environment," Mullen said, noting that while not all of their trucks have made the switch yet, they believe they are in the early stages of this transition.

By the end of 2025, Tourmaline and Clean Energy Fuels aim to have a total of seven CNG fueling stations operational, with plans for additional stations in Kamloops, Fort St. John, and Chilliwack in British Columbia, as well as Fort McMurray in Alberta.

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