Is CNG a cost-effective choice for road transport companies?
When it comes to compressed natural gas (CNG), the environmental benefits are often the first to be highlighted. And yet, even though the transition to green energy remains a priority for many companies, we know that the primary goal of any company is profitability.
What about the economic aspect? Is CNG a cost-effective fuel for road transport companies? We are happy to say the answer is yes.
CNG, a cost-effective fuel for transport companies
The profitability of compressed natural gas is largely due to three factors. These are added to the list of advantages of natural gas, which make it a preferred fuel for road transport companies.
Major savings at the pump
On average, each CNG refill generates about 30% savings compared to conventional fuel types such as diesel. This is a considerable amount, which can save you a great deal of money over time.
A more stable price for CNG than petroleum products
The ability to accurately forecast your expenses is a valued asset for trucking companies. However, this is challenging for companies with vehicles that run on petroleum products, since their prices continue to fluctuate.
In contrast, the price of compressed natural gas is much more stable, providing greater predictability in the company’s expenses and revenues.
Tax exemption for transport companies that use CNG as fuel
Since natural gas is not a product of the petroleum industry, companies that fuel with it are exempt from these taxes, which saves them significant amounts of money annually.
How long does it take for transport companies to see a return on their investment when they transition to CNG?
Before making the switch to a fleet of CNG trucks, it is important to take into account the price of these trucks, which is generally higher than a diesel truck. The transition is still a good investment despite the initial disbursement: after 3 or 4 years, you will get a return on your investment. This will depend on how often your trucks are used, the type of load and several other factors.
Combined with the Quebec subsidy from the Eco-Trucking program, the payback period for your investment is considerably reduced: the program allows you to benefit from a 30% refund of the extra cost of trucks, up to a maximum of $30,000 per vehicle.
The EBI – Desjardins grant to help you convert to CNG
To further accelerate your return on investment, you can also apply for the EBI – Desjardins grant, which will save you 25% on your conversion to compressed natural gas. This subsidy is exclusive to conversion with EBI.
Choose EBI for a cost-effective conversion to CNG
To benefit from the economic, environmental and operational advantages of compressed natural gas while ensuring the profitability of your conversion, choose EBI. We are the leading supplier of CNG to the Quebec transportation industry: the efficiency of our refueling methods is second to none.
For more information on the benefits of transitioning to CNG for transport companies, please do not hesitate to contact us.