Canada: FortisBC Wins Approval to Provide LNG Fuelling Services to Vedder Transport

FortisBC has received interim approval from the British Columbia Utilities Commission (BCUC) to provide fuelling services to Vedder Transport through a liquefied natural gas (LNG) fuelling station in Abbotsford.

FortisBC and Vedder Transport worked together to construct this fuelling station. Vedder Transport will now be able to safely and economically refuel their new fleet of 50 LNG-powered trucks on their own premises at rates regulated by the BCUC. Delivery of Vedder Transport’s first 10 LNG-powered trucks has already begun and all 50 are expected to arrive by early 2012; the trucks use technology developed by Westport Innovations.

“By using LNG from B.C., Vedder Transport’s trucks are not only helping to create a new market for an economical transportation fuel, but they are helping to ensure the province’s economy remains competitive – B.C. businesses are able to reduce their costs, from the shipping container straight to their customers’ doorstep,” said Doug Stout, vice president, energy solutions and external relations, FortisBC. “Vedder Transport’s trucks will also be emitting up to 27 per cent less greenhouse gases (GHGs) than their diesel counterparts, so in addition to contributing to the economy, using natural gas will help B.C. reach its climate action goals.”

“At Vedder, we are committed to protecting the environment for future generations. Adding natural gas trucks to our fleet will help us reduce transportation-related emissions, ultimately improving air quality while reducing fuel management expenses,” said Fred Zweep, president of the Vedder Transportation Group.

Natural gas vehicles (NGVs) provide a way to decrease carbon emissions and reduce noise levels, and are the most viable option for companies with large fleets looking to reduce their GHGs and fuel costs. Using a model developed for Natural Resources Canada to calculate GHG emissions, an LNG-powered truck driven 190,000 kilometres per year is estimated to produce about 70 fewer tonnes of GHGs annually than its diesel counterpart – helping Vedder Transport to reduce their GHG emissions by approximately 3,500 tonnes per year. At current prices, LNG is also approximately 50 per cent less expensive than diesel, resulting in significant operating cost savings.

“Natural gas is an increasingly popular energy source for the transportation industry,” said Clark Quintin, president of Westport HD. “It is great to see Vedder Transport and FortisBC leading the way in Western Canada in a partnership that helps reduce greenhouse gas emissions in heavy-duty transport. The initiative, to use LNG as a fuel in long-haul trucking, is an important step towards a better environmental profile for the transport industry through a technology and partnership developed in our own backyard.”

FortisBC also recently received BCUC approval to provide fuelling services to Waste Management for their 20 refuse trucks powered by compressed natural gas (CNG). FortisBC owns and maintains a CNG fuelling station on Waste Management’s premises, at rates regulated by the BCUC. This CNG fuelling station would be the first of its kind for heavy duty trucking in Western Canada.

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Source: FortisBC, September 27, 2011