The Commercial Case for Changing to Gas for HGV Fuel

The switch to natural gas or biomethane as a fuel for HGVs undertaking regular haulage jobs is not a new phenomenon. But making the switch is expensive, not only to convert vehicles but also to set up a depot for refuelling, should businesses wish to do that. Why then, apart from the government incentives for switching, should freight companies consider taking the plunge?

Commercial Advantages of Gas

It is well documented that HGV businesses with a gas fuelled fleet taking on haulage jobs that equate to average vehicle mileages can save money, as long as they have access to a large refuelling infrastructure. Most companies operate on a back to base system so vehicles do not have to rely on finding a refuelling station when out on the road. Currently, however, refuelling stations are few and far between.

The economics of running a back to base refuelling operation are most appealing when the company is operating single or duel fuel trucks that use an average of 5,000 – 10,000kg/day of fuel. If the refuelling station is reduced in size to accommodate around 2,000kg/day, the economy of scale makes the operation less cost effective.

The way around this problem for smaller companies running fewer haulage jobs but still operating gas fuelled HGVs is to share refuelling stations. Arrangements with other companies are often established and this is a sound solution for many that could not afford to build their own depot or rely on public refuelling.

Why Gas? – The DfT

The use of gas for fuel has been well supported by the government and in November 2012 Ricardo-AEA, in collaboration with the Department of Transport’s (DfT) Low Emission HGV Task Force, carried out a study on ways to remove obstacles in order that commercial vehicles could access low emission technologies. In conclusion, the study that included vehicles weighing over 3.5 tonnes summarised that changing to gas held huge potential for reducing carbon emissions from commercial vehicles.

The DfT, as a result of the study, put recommendations in place that aimed to increase the use of natural gas or biomethane. These recommendations included making necessary changes to the incentives schemes for taking up gas and biomethane as well as securing the commercial supplies of this alternative fuel. The establishing and support of a network of refuelling points was also endorsed. On top of these suggestions, the DfT put forward the idea that biomethane be recognised as a fuel in carbon reports.

Why Gas? – The Government

The government are also making an effort to encourage businesses to switch to gas. Permitted weights and lengths are to be changed in order to allow for the size and weight of gas tanks on HGVs. The government are also reducing taxes, the congestion charge in the capital, as well as bridge and tunnel tolls for gas-fuelled vehicles.

Companies undertaking haulage jobs in today’s world will no doubt have heard about the advantages of changing to natural gas. While the initial outlay appears expensive, the long-term savings and the government incentives certainly make it worthwhile.

Norman Dulwich is a Correspondent for Haulage Exchange, the leading online trade network for the road transport industry. Connecting logistics professionals across the UK and Europe through their website, Haulage Exchange provides services for matching haulage jobs with available drivers. Over 4,000 transport exchange businesses are networked together through their website, trading jobs and capacity in a safe 'wholesale' environment.

Writer and Online Marketing Manager in London.