Canada Extends NGV Assistance to Conversions

27 July 2005

The Government of Canada has extended the Natural Gas for Vehicles Market Transformation Pilot Project to include conversions as well as the buying or leasing of a new natural gas vehicle.

An additional C$1.855 million (US$1.5 million), provided by Natural Resources Canada (NRCan), will provide fleet owners up to C$3,000 (US$2,400) per vehicle toward the installation of an advanced natural-gas vehicle (NGV) conversion system. This is the same maximum benefit allocated toward new vehicles.

This project is being implemented by the Canadian Natural Gas Vehicle Alliance (CNGVA). The incentive for buying or leasing under the original pilot project continues.

Natural gas vehicles will produce approximately 21% fewer greenhouse gas emissions than their conventional gasoline counterparts.

According to the CNGVA,there are more than 120 public refueling stations in major Canadian centers, putting the fuel within reach of 75% of the driving population. Additionally, the organization promotes at-home or at-work refueling using a Vehicle Refueling Appliance (VRA) (such as Honda’s Phill in the US).

However, according to NRC, there are only some 25,000 natural gas vehicles in the Canadian fleet out of a fleet of some 17.5 million light-duty and 600,000 medium- and heavy-duty vehicles (i.e., about 0.1%).

NRCan and the CNGVA are examine other ways to boost NGVs in the Canadian market.

Resources:

• The Natural Gas for Vehicles Market Transformation Project