Cheap Enough? Making the Switch From Diesel Fuel to Natural Gas

This report explores the potential for expanded use of natural gas as a transportation fuel in Canada, particularly as an alternative to diesel for heavy-duty trucks.

Document Highlights

This report considers the potential for natural gas as an alternative fuel to diesel for heavy-duty trucks in particular, along with some consideration of its use as a rail and marine transportation fuel. The primary focus is the potential financial impact on freight carriers. These impacts are also considered in the context of the greenhouse gas (GHG) reduction potential of the fuel. The report concludes that while carriers willing to convert their fleets to natural gas do face significant capital costs and continuing risks related to relative fuel prices, availability of fuelling infrastructure, and tax policy, they could reap significant net benefits in operating costs while also reducing their environmental impact.