Benefits of natural gas-fuelled vehicles

Approximately 44 per cent of British Columbia’s greenhouse gas (GHG) emissions come from the transportation sector,1 meaning there is an opportunity to support the sector’s transition to lower carbon intensity energy. As part of our commitment to supporting B.C.’s climate action goals, we’ve contributed towards the transition to lower carbon fuel for medium- and heavy-duty vehicles in B.C. since 2009.

We have a wide range of lower carbon intensity solutions2 for fleet operators including CNG, LNG and designated Renewable Natural Gas3 (RNG). This offers fleet operators flexible pathways to help lower the carbon intensity and cost4 of their fuel supply while maintaining operational reliability.

How can CNG, LNG and RNG lower emissions?

Since vehicle emissions from the same fuel can vary depending on factors such as engine type and vehicle age, we focus on the lifecycle carbon intensity of the fuel itself. Our lower carbon fuel options have a lower lifecycle carbon intensity than the B.C. Low Carbon Fuel Standard diesel carbon intensity baseline:

  • Our CNG has a carbon intensity approximately 25 per cent lower.5
  • Our LNG for on-road use has a carbon intensity of up to 22 per cent lower.6
  • Our RNG has a carbon intensity nearly 99 per cent lower.7

B.C. carbon credits

Since natural gas is a lower carbon intensity fuel than diesel, transitioning to natural gas means you could be eligible for carbon credits, which you can sell. How the process works:

  1. We send you an annual natural gas fuel usage report that you submit to B.C.’s Ministry of Energy and Climate Solutions.
  2. The Ministry determines whether or not to validate your credits.
  3. If validated, you can sell those credits via the credit market, or via a broker.

Learn more about the B.C. government’s Renewable and Low Carbon Fuel Requirements Regulation.

Questions? We’re here to help.

Email us at [email protected].

Looking forward: fuelling with hydrogen

We expect that hydrogen, which emits no carbon dioxide at the point of use when used as a fuel, will play a role in expanding our lower carbon gas8 portfolio. Learn more about the exciting new possibilities hydrogen offers.
1Government of B.C. BC’s Provincial Inventory of Greenhouse Gas Emissions (2022). In 2022, the transportation sector emitted 28.8 metric tonnes of carbon dioxide equivalent (MtCO2e) compared with total emissions of 65.6 MtCO2e.

2The B.C. government uses a lifecycle analysis model called GHGenius to determine carbon intensity of various fuel pathways. In this model, the default baseline carbon intensity for diesel is 94.38 grams of carbon dioxide equivalent per megajoule of energy (gCO2e/MJ). FortisBC does not have fuel codes for its CNG as the diversity and dynamics of its supply and distribution pathways are incredibly complex to analyse reliably so FortisBC uses GHGenius’s default recorded carbon intensity of 63.91 gCO2e/MJ. FortisBC does have fuel codes for LNG that specify the carbon intensity at 65.94 gCO2e/MJ. This value can be used as-is for road transportation. When considering the potential for methane slip in LNG for marine applications, using the worst-case additional carbon intensity included in the B.C. government’s LCFS calculator of 27.3 gCO2e/MJ, the overall carbon intensity of LNG for marine applications is 93.24 gCO2e/MJ. Using this rationale, both CNG and LNG have a lower carbon intensity than the baseline value for diesel.

3FortisBC’s RNG for the purposes of CNG vehicles that is registered with the B.C. LCFS is 0.14 grams of carbon dioxide equivalent per megajoule of energy (gCO2e/MJ). The B.C. LCFS baseline carbon intensity for diesel is 94.38 gCO2e/MJ.

4Fuel cost comparisons are based on the prevailing diesel market pricing and are subject to change or market fluctuations. Actual cost may vary depending on total cost of ownership, fuel delivery logistics and fuelling infrastructure costs.
  • CNG (using Rate Schedule 5 cost of gas and delivery charges, excluding demand charges) was calculated to be $4.388 per gigajoule (GJ) or $0.17 per diesel-litre equivalent (DLE).
  • RNG (using Rate Schedule RS-5VRNG cost of VRNG, gas, storage and transport and delivery charges) was calculated to be $27.734/GJ or $1.072/DLE.
  • LNG (using Rate Schedule 46 cost of gas, LNG facility charge and electricity charge) was calculated to be $8.14/GJ or $0.315/DLE.
These values were compared against publicly available terminal rack pricing for ultra-low sulphur diesel (ULSD) in the Vancouver market.

5FortisBC’s 2023 LCFS compliance submission to the provincial government specifies a baseline CNG carbon intensity of 63.64 grams of carbon dioxide equivalent per megajoule of energy (gCO2e/MJ). The B.C. LCFS baseline carbon intensity for diesel is 94.38 gCO2e/MJ. Based on an energy efficiency ratio (EER) of 0.9, CNG engines provide approximately 25 per cent lower carbon intensity than diesel.

6FortisBC’s 2023 LCFS compliance submission to the provincial government specifies a baseline LNG carbon intensity of 65.94 grams of carbon dioxide equivalent per megajoule of energy (gCO2e/MJ) for FortisBC’s LNG for on-road use. The B.C. LCFS baseline carbon intensity for diesel is 94.38 gCO2e/MJ. Based on an energy efficiency ratio (EER) of 0.9, LNG used in on-road engines provides up to 22 per cent lower carbon intensity than diesel.

7FortisBC’s RNG for the purposes of CNG vehicles that is registered with the B.C. LCFS is 0.14 grams of carbon dioxide equivalent per megajoule of energy (gCO2e/MJ). The B.C. LCFS baseline carbon intensity for diesel is 94.38 gCO2e/MJ.

8FortisBC uses the term lower carbon gas to refer collectively to the lower carbon gases or fuels that the utility can produce, use and/or acquire under the Greenhouse Gas Reduction (Clean Energy) Regulation (“Regulation”). The Regulation identifies different sources of gases that are prescribed based on their feedstock and production processes. FortisBC’s lower carbon gas portfolio includes Renewable Natural Gas (also called “RNG”). Other gases and fuels may be added to the portfolio over time. FortisBC’s lower carbon gas portfolio is lower carbon when compared to conventional natural gas.