It makes sense! Compressed Natural Gas (CNG) is an affordable, reliable, and safe option for large-scale fleets. Popular in the USA, China, South America, and Europe, CNG for vehicles has been readily available in South Africa since 2014. The switch to CNG is simple and fleet owners with mixed-use vehicles over 30 can opt-in for an onsite or mobile filling unit. Above the carbon credit and safety benefit, large-scale fleets running on CNG offers fleet owners on average R7.50 per litre in savings*. Corporates can also claim back the VAT bringing the total saving to over R 8.00/Litre.
Less Steeling more Wheeling
Diesel theft contributes to a significant portion of revenue loss for fleet owners. A large portion of diesel theft occurs en route with daily examples of fuel theft cases in South Africa. Recently a driver was monitored stealing more than R 11 000 in fuel within 3 weeks from a single fleet vehicle! When dealing with several vehicles in a single fleet these costs will add up.
In comparison to Diesel, CNG is not a fuel that can be stolen. CNG is stored at 200 bar in the cylinder and has an electrically controlled valve. Being a gas that is lighter than air, CNG disperses quickly making it impossible to remove from the tank. The CNG cylinder can withstand bullets, fire and drops from great height without allowing any gas to escape.
The switch to CNG is simple and fleet owners with mixed-use vehicles over 30 can opt-in for an onsite or mobile filling unit.
Less is More
Compressed Natural Gas is cheaper than Diesel. It is a fuel product in abundance and South Africa has the technology and skills to supply CNG on a large scale. The proof is in the pudding and NGV GAS has recorded significant savings across a growing customer base. From standard vehicles only to mixed fleets, CNG conversions are easily installed by several conversion agencies across Gauteng.
New fuelling points situated at current filling stations have been launched and with CNG readily available fleets travelling longer distances can benefit from the overall fuel savings.
Unlike Petrol engines that are Bi-Fuel, they operate on either gas or petrol as needed, diesel engines are Dual Fuel. Essentially the gas is mixed with the diesel in the cylinder before ignition. Diesel Dual Fuel vehicles achieve substitution levels of 35% – 60% depending on routes and driving habits. This represents massive fuel savings for the fleet owner.
Further savings will be noted when the vehicle is serviced. CNG is one of the cleanest fuel types for a vehicle’s engine, leaving much less carbon build up when compared to Diesel. This reduces maintenance costs of the engine.
Giving Credit where Credit Due
South Africa is a fleet reliant country. The environmental impact is significant and will grow as fleet sizes grow. With the limited rail services available, many businesses rely on road transport to get goods from A to B. In recent studies, the emission of carbon monoxide is reduced by 80% in vehicles running on compressed natural gas. CNG vehicles also produce 45% fewer hydrocarbons than other fuel types. Countries like India, China and the USA have seen lower vehicle emissions due to the introduction of CNG as a better alternative.
Carbon credits can be claimed against the use of CNG in large-scale fleets. In addition, the 12L tax code from SARS allows for tax rebates for using CNG, often as much as the conversion itself.
South Africa has the infrastructure, supply, and technology to support the full-scale implementation of compressed natural gas as a fuel alternative. The demand for compressed natural gas has grown significantly within the fleet industry and makes not only financial but environmental sense to switch.
For further information visit: www.cngholdings.co.za
AUTHOR: Wayne Williams is the Sales and Marketing Director at CNG Holdings.