Canada: BC Govt Offers Incentives for Transportation Fleets to Use Natural Gas

The B.C. Ministry of Energy and Mines yesterday announced the Greenhouse Gas Reduction regulation that advances the adoption and deployment of natural gas vehicles (NGVs) in BC. 

Westport Innovations believes this important program will benefit British Columbia’s economy, environment and transportation options for industry. The regulation permits a utility to spend up to $62 million on vehicle and ferry incentives, up to $12 million on compressed natural gas (CNG) fuelling stations and up to $30.5 million on liquefied natural gas stations, for a total of $104.5 million.

“This is a positive step that will promote the use of domestic BC natural gas as a transportation fuel, and generate both environmental and economic benefits for our province and residents,” said David Demers, CEO of Westport Innovations. “British Columbia is home to world-class companies that both generate and use natural gas transportation technology, and this program will allow the accelerated adoption of natural gas heavy-duty vehicles.”

This regulation allows utility companies to deliver natural gas transportation programs until March 31, 2017, including the opportunity to:

• Offer incentives to transportation fleets that would use natural gas such as  buses, trucks or ferries
• Build, own and operate compressed natural gas fuelling stations or liquefied natural gas fuelling stations
• Upgrade facilities to provide training to safely maintain natural gas vehicles

The Greenhouse Gas Reduction regulation will promote the use of British Columbia’s abundant natural gas resources as a transportation fuel in heavy-duty transport vehicles, such as trucks, transit buses, school buses, refuse trucks and marine vessels.

The program’s objectives include displacing high carbon fuel, reducing greenhouse gas (GHG) emissions, and increasing  natural gas fueling infrastructure. Natural gas vehicles are a proven technology used across the globe.  Natural gas is 25 to 40 per cent cheaper than gasoline and diesel and produces up to 25 per cent fewer GHG emissions compared to a gasoline or diesel vehicle.

In addition, the Province is offering direct grants of up to $2,500 to purchasers of qualifying CNG vehicles. This is being offered through the $14.3 million Clean Energy Vehicle Program, announced in Nov. 2011.

BC has an abundant supply of low cost and low carbon natural gas. This program will allow local governments and businesses to take advantage of the benefits of natural gas, including lower fueling costs and reduced greenhouse gas emissions.

[mappress]

LNG World News Staff, May 16, 2012; Image: Wetsport