LNG and LBG help heavy transport and logistics to reduce emissions
Liquefied natural gas (LNG) and liquefied biogas (LBG) are cost-effective solutions to respond to emissions challenges in transport logistics today and beyond.
New study finds up to 32% of Nordic transport companies are interested in using biogas in the near future
A recent study reveals positive results with regard to the actions and attitudes of Nordic transport companies towards sustainability issues. Up to 74% of heavy-duty vehicle (HDV) decision-makers assert that environmental considerations are factored into their operations. The ever-growing importance of climate-friendly logistic solutions manifests as an increasing interest in low-emission fuels, with one third of transport companies interested in using biogas in the future.
It comes as no surprise that the transport sector is on the frontline of lowering carbon emissions and reaching national climate targets. The results from a recent study commissioned by Gasum highlight these encouraging gains: up to 74% of heavy-duty vehicle (HDV) decision-makers responded that they pay attention to environmental issues in their operations, and 45% responded that their customers are environmentally aware. The study, conducted by Value Clinic, surveyed 367 HDV decision-makers in Finland, Sweden and Norway from November 2020 to February 2021.
Increasing environmental awareness amongst Nordic transport companies reflects their interest in low-emission fuels. Approximately one third of transport company decision-makers are open to using biogas in the future, and nearly 29% see natural gas as a potential alternative. Currently, a transition to gas is seen as more likely than to hydrogen.
Read more: Transporting freight the eco-friendly way
“EU and national regulatory regimes set targets for emissions reductions. However, increasing demand for gas is also heavily driven by consumers. Companies are looking for solutions that cut greenhouse gas emissions today – not five or ten years from now. It is very encouraging to see such great results from all over the Nordics,” says Jukka Metsälä, Gasum’s Vice President of Traffic.
The national emissions targets of the EU and individual countries impact the industry and encourage companies to make environmentally friendly choices. Carbon dioxide emissions from new HDVs in the EU must be cut by 15% from 2019 levels by 2025, while the reduction target for 2030 is 30%. Seen from a life cycle perspective, the use of liquefied biogas (LBG) can reduce greenhouse gas emissions by up to 90% compared with diesel. With liquefied natural gas (LNG), greenhouse gas emissions are more than 20% lower than those from conventional diesel.
Subsidies as an incentive to switch to gas-powered trucks
In the transportation sector, the choice of fuel has a significant impact on a business’s responsibility objective, which is why low-emission fuels play a significant role in achieving many sustainability goals. To accelerate the transition to cleaner road transport, Nordic countries promote gas-fuelled transport in various ways, such as offering subsidies to transport companies and support for replacing diesel vehicles with more sustainable solutions.
The study shows that subsidies do have an impact on HDV decision-makers; more than 50% of respondents see supply contributions as a significant incentive to replace diesel vehicles with gas alternatives. While overall awareness of subsidies is positive, the information has not reached the entire industry.
“There is still work to be done in raising awareness of the competitiveness of gas solutions as well as the possibilities that already exist for logistics players with respect to various subsidy schemes. New acquisitions and investments always have a big impact on operators, so a subsidy can act as a significant driving force in the decision to replace vehicles with environmentally friendly options starting today,” says Metsälä.
Gasum aims to expand its gas-filling station network
One factor that respondents listed as a hinderance to replacing diesel vehicles with gas-powered options was the current state of the gas-filling station network. Currently, Gasum has around 100 gas-filling stations in total, of which 30 are dedicated to long-haul heavy-duty transport in the Nordics. In Europe, there are already almost 400 LNG stations catering to the needs of heavy-duty transport (NGVA).
Gasum aims to support the climate efforts of the Nordic countries by expanding the gas-filling station network across Finland, Sweden and Norway. By increasing the availability of an environment-friendly alternative, Gasum strives to help customers achieve their emission-reduction targets.
“Growth in the use of gas is a prerequisite for achieving ambitious emissions targets in the transport sector. This will mean a full switch to clean energy for delivery and heavy-duty road transport as well as shipping in the Baltic Sea, where gas is also an excellent fuel solution,” notes Metsälä.