FortisBC continues to help put cleaner, natural gas vehicles on B.C.'s roads

Mar 27, 2014

 $9.5 million in latest announced incentive funding brings total to date to more than $17.5 million awarded

SURREY, BC – Eighteen fleet operators have been awarded an incentive that will result in more than 200 new cleaner, more cost-effective vehicles on B.C.’s roads. The new vehicles will use either liquefied natural gas (LNG) or compressed natural gas (CNG).

“The number of fleet operators applying for this incentive shows that natural gas is becoming the fuel of choice for heavy-duty and return-to-base fleet vehicle operators,” said John Walker, president and CEO of FortisBC. “Our incentives help companies switch to natural gas, which is a cost-effective and abundant fuel source in British Columbia that also helps reduce emissions.”

Following the creation of the Government of B.C.’s Greenhouse Gas Reduction regulation in 2012, FortisBC announced a $104.5 million program to offset up to 75 per cent of the cost for a natural gas engine over a diesel engine. Program funding is also available for training, upgrades to facilities to safely maintain natural gas vehicles and for building CNG or LNG fuelling stations.

To meet increased market demand for LNG, FortisBC is currently undertaking a $400-million expansion of its Tilbury LNG plant in Delta, B.C., which will add approximately one million gigajoules of LNG storage as well as 30,000 to 60,000 gigajoules of liquefaction capacity per day to supply natural gas for the transportation sector and increase LNG supply, creating opportunities for industrial users and remote communities.

The additional volumes of natural gas for transportation moving through FortisBC’s pipeline system benefit all natural gas customers. Better year-round utilization of FortisBC’s infrastructure, especially during the summer months when heating requirements are reduced, helps to keep natural gas delivery rates stable for all customers.

Natural gas is an economical and environmentally friendly fuel choice for transportation. Ideal for return-to-base fleets like waste haulers, courier trucks, buses, tractor trailers and marine vessels. Its benefits include:

• Natural gas fuel costs have historically been 25 to 50 per cent less than diesel.
• Greenhouse gas emissions are reduced by 20 to 30 per cent.
• According to operators, natural gas engines run quieter compared to diesel trucks.

Heavy-duty fleet operators in British Columbia can learn more about additional rounds of funding by emailing [email protected] to receive updates or by visiting fortisbc.com/ngt.

Media Backgrounder

Almost $5 million has been granted for customers in the 2012 and 2013 rounds of funding for LNG vehicles. More than $4 million has been granted for the 2013 round of funding for CNG vehicles.

LNG vehicle incentives

Applicant	Incentive year	Head Office	Number of vehicles	Incentive agreement
Sutco Contracting Ltd.	2012	Salmo	6	$438,750
Ledcor LNG Group Ltd.	2012	Vancouver	15	$1,008,551
Denwill Enterprises Inc.	2012	Burnaby	10	$653,452
Arrow Transport	2012	Kamloops	24	$1,674,000
Wheeler Transport Ltd.	2013	Coquitlam	10	$657,825
Denwill Enterprises Inc.	2013	Burnaby	7	$455,000
Trimac Transportation Systems LP.	2013	Calgary	1	$64,806
Total			73	$4,952,384

CNG vehicle incentives

Applicant	Incentive year	Head Office	Number of vehicles	Incentive agreement
UBC	2013	Vancouver	1	$44,777
Smithrite Disposal Ltd	2013	Coquitlam	10	$440,440
For Less Disposal Inc.	2013	Kelowna	1	$33,970
TransLink (South Coast British Columbia Transportation Authority)	2013	New Westminster	45	$1,575,000
BFI Canada Inc.	2013	Coquitlam	10	$303,598
School District No. 23	2013	Kelowna	2	$58,303
Waste Management of Canada Corporation	2013	Coquitlam	8	$179,200
Waste Control Services	2013	Burnaby	6	$192,780
Halton Recycling Ltd. (DBA Emterra Environmental)	2013	Surrey	14	$410,311
Euro Asia Transload Inc.	2013	Richmond	4	$139,594
BC Transit in Kamloops	2013	Victoria	25	$875,000
Cold Star Freight Systems Inc.	2013	Victoria	5	$214,428
Evergreen Industries Ltd.	2013	Victoria	3	$131, 983
Total			134	$4,599,382

About liquefied natural gas

Liquefied natural gas (LNG) is natural gas that has been cooled to a low temperature of -162°C to become a liquid. From our LNG storage facility, LNG is delivered by tanker truck to the LNG dispensing station on the customer’s property or at a commercial fuelling station along a regional corridor.

About compressed natural gas

Compressed natural gas (CNG) is natural gas that has been compressed and stored on board the vehicle in a high-pressure vessel at about 3,600 pounds per square inch. Natural gas delivered by our underground distribution pipelines to the customer’s property or to a commercial fuelling station where it is then compressed.

 

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