According to the report published in Vancouver Sun, two companies are teaming up to build liquefied natural gas plants in Vancouver and Edmonton to serve the transportation industry.
In announcing their joint venture Tuesday, Ferus Natural Gas Fuels and ENN Canada Corporation said the plants will provide a cheaper and cleanerburning fuel to the trucking business.
The fuel can also be used in the marine, rail, mining and oil and gas exploration industries.
“The benefits of fuelling with natural gas are significant,” said ENN Canada CEO Henry Cai, whose company is a subsidiary of one of the biggest natural gas distributors in China.
“Natural gas over diesel represents a 30-to 40-per-cent cost savings to the end user and
contributes up to a 25-per-cent reduction in greenhouse gas emissions.”
The plants will initially produce 379,000 litres of LNG – natural gas that has been chilled into a liquid state, making it easier to transport. Ferus and ENN will pick sites for the plants within six months, with start-up expected in 2016. The companies did not say how much their project would cost.
Although natural gas is cheap and abundant in North America, it has been slow to catch on as a transportation fuel because of the lack of refuelling infrastructure.
That’s one of the biggest challenges, said Ferus CEO Dick Brown.
“In order for our customers to make the switch to natural gas, they need certainty of an uninterrupted supply of LNG to fuel their equipment,” he said.