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gas is used in greater volumes as natural “Asthe result of its affordability and attractiveness as a fuel of choice, the fuelling infrastructure necessary to respond to increased demand is expected to evolve over time, making natural gas more widely available as a fuel option.
— The Canadian Natural Gas Initiative
“In North America, there is evidence of what is being called an ‘industrial renaissance’ as low fuel and feedstock prices induce a revival of industries that are heavily energy-dependent or reliant on hydrocarbon feedstocks.” However, it cautions this scenario is “far from a sure thing.” Opposition to gas production activities, transportation infrastructure and new gas-fired power plants “may well lead to some of these new resources never being developed,” the report says. A big potential application could be in specific segments of the transportation sector. “In the transportation market, it is still early days for natural gas vehicles, but there has been a recent rapid development of heavy-duty vehicle pilot tests using LNG trucks in several North American markets. Heavy-duty trucks and buses running on natural gas reduce greenhouse gas emissions by an estimated 15 to 30 per cent compared to diesel trucks and buses,” the report says. “The opportunity to expand these pilot tests to return-to-base fleets is the next step in the growth of the natural gas vehicle market. And the prospect for longerterm applications in passenger vehicle markets is starting to be discussed. The U.S. Department of Energy recently launched a project to develop a low-cost home refuelling unit for natural gas vehicles.” Looking ahead, the report says the robustness of the supply picture offers an opportunity to look at more and more emerging applications for gas. In transportation, the immediate opportunities have been identified and are beginning to be pursued; the
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report notes the infrastructure necessary to enable greater use of natural gas is still evolving, as Canada currently has fewer than 100 compressed and LNG fuelling stations across the country, more than half of which are private fleet refuelling stations. “However, as natural gas is used in greater volumes as the result of its affordability and attractiveness as a fuel of choice, the fuelling infrastructure necessary to respond to increased demand is expected to evolve over time, making natural gas more widely available as a fuel option,” the report says. “In addition, private sector investments in liquefaction facilities to supply liquefied natural gas into the heavy-truck market can also be leveraged to supply fuel for off-road applications such as marine, rail and heavy off-road trucks.” In power generation, as the challenges around siting large facilities in densely populated areas become even greater, the idea of more decentralized generation through highly efficient and small combined heat and power units is being looked at more closely, the report says. “In addition, efforts to incorporate new fuels like biomass, or to expand thermal grids—both popular in many jurisdictions—turn in large part on having natural gas as the foundation fuel. And emerging ideas like power to gas, whereby the gas grid becomes the means to turn intermittent renewables into reliable supply, are starting to be tested.” While these are emerging applications, “the technologies involved are not hypothetical,” the report points out. “The opportunities require investment and innovation, but the possibilities are real—all the more so in the face of affordable natural gas.”
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