Tag: CNG Holdings

CNG: A Greener Fuel Alternative for SA

There is a global push towards sustainability and green initiatives, especially in the automotive industry. Every second, 2 brand new vehicles enter the roads. This only increases the environmental impact of one of the biggest contributors to C02 emissions and air pollution. Between 80 to 90% of vehicles’ negative effect on the environment stems from fuel (petrol and diesel), which produces air pollution and greenhouse gases. 

Countries around the world are setting green goals that involve decreasing the number of traditional combustion engine vehicles on the road and encouraging investment in new automotive technologies. In 2021, two-thirds of Norway’s new car sales were electric. China is currently the globe’s largest market for electric cars due low-cost offers and most importantly, regulatory incentives which include electric vehicle owners avoiding restrictions or driving bans on certain days that only apply to combustion engine vehicles in Chinese megacities. For developing countries like South Africa, where only 0.02% of all domestic automotive sales were electric in 2020, there needs to be a combined approach. One which utilises fuel alternatives that are cleaner and greener in combination with electric powered automobiles.

An additional bonus is that CNG is a safer alternative to LPG. Furthermore, diesel is often stolen, which is costly for businesses. Another advantage of using CNG is that fuel cannot be stolen because the cylinders are much harder to move and generally have limited resale value.

The USA is just one example of a country making use of a combination of alternative fuels. As of 2020, nearly 1000 public compressed natural gas (CNG) fuelling stations are available in the United States and 2021 saw an increase in the nation’s electric car sales. CNG is a naturally occurring product in underground pockets in bedrock structures. As a vehicle fuel, natural gas can lessen greenhouse gas emissions over conventional fuels, depending on vehicle type, duty cycle, and engine calibration. CNG Holding’s Head of Group Sales and Marketing Manager, Wayne Williams, explains that natural gas vehicle (NGVs) conversions are more suited to fleet vehicles as the return on investment is so much better. A vehicle used for commercial purposes – often accumulating many kilometres – is suitable to be converted to an NGV in order to take advantage of the conversion technology and cost effectiveness.

Besides being good for the environment, CNG is also the smart, economical choice. Towards the end of last year, CNG was about R8 cheaper than diesel and R11 cheaper than petrol. Unlike liquified petroleum gas (LPG), CNG is not a by-product of crude oil and, consequently, is not subject to crude oil-related price adjustments. CNG pricing is also not linked to the exchange rate. Williams says there has only been a mere four price adjustments in the past five years for CNG. In the wake of significant increases in petrol and diesel prices, CNG fuelled vehicles can significantly reduce the cost to businesses in the long run and ensure that they are shielded from future increases, adds Williams.

An additional bonus is that CNG is a safer alternative to LPG. Furthermore, diesel is often stolen, which is costly for businesses. Another advantage of using CNG is that fuel cannot be stolen because the cylinders are much harder to move and generally have limited resale value.

CNG holdings has successfully converted large-scale fleets for both government and businesses to NGVs in South Africa. The conversion kit for a vehicle does not require any mechanical changes to the engine, consequently allowing for an easy transfer of the kit to another vehicle. When the kit has been fitted with the appropriate number of gas cylinders onto the vehicle, the kit is then programmed in order to optimise the fuel saving, maximise the substitution level and set the kit to accommodate the specific conditions in which the vehicle primarily travels. The lifespan of a kit is about 20 years and can be transferred between vehicles at a nominal cost. The initial capital expense is, therefore, a once-off cost that has significant returns.

Read the full article on Engineering News.

Converting to NGV has never been this crucial for SMEs!

Petrol prices have become a constant problem in South Africa. The biggest factor in the fluctuation of petrol prices in South Africa is the global price of crude oil (which is used to produce diesel and petrol). 

This is a huge factor for every South African citizen, particularly Small to Medium Enterprises (SMEs) that rely on transport and mobility. These range from logistics companies to the local plumber who has to travel from one location to the other to make an income. 

All SMEs experience internal difficulties which make generating profit a bit of a struggle. This varies from not making enough profit to having too many expenses. Amongst these expenses, the cost of getting from A to B is one of the biggest cost factors to overcome.

Because oil is traded in Dollars, the Rand/Dollar has a direct impact on how many Rands are required to purchase a barrel of oil. When the Rand depreciates against the Dollar, which has been the case, it increases the Rands required to purchase the same amount of oil. How can an SME control this? What control does Bob the Builder who relies on his bakkie to get him around have on this? Little to none! 

An alternative fuel: An economic life-saver

SMEs, who rely on mobility to generate income, are not restrained to using petrol or diesel. Across the globe, various transport-reliant businesses have converted to Natural Gas as an alternative fuel for their bakkies, vans, scooters, motorbikes even delivery tricycles! This global trend is due to the reliable price of Natural Gas, which, contrary to petrol and diesel, is not reliant on the Rand/Dollar rate. Natural Gas requires very little refining and no vigorous maintenance, as opposed to crude oil. Natural Gas is exactly that, Natural.

“I think many people are realising the economic, as well as the environmental, benefits of using CNG as an alternative fuel” Abdelhakim, manager of Al Etihad Centre (NGV Global News)

Easy as 1,2,3

SMEs can easily convert their current vehicles to run on Compressed Natural Gas (CNG), this conversion can be done to have the vehicle run on Natural Gas as a bi-fuel, with the option to both Natural Gas and petrol. 

NGV Global has updated its report on the number of natural gas vehicles (NGVs) and refuelling stations, country by country. According to the information at hand, there are now more than 27 million NGVs in the world. Growth is forecast to exceed 30 million by 2024 – NGV Global.

NGV Gas, a division of CNG Holdings is currently helping various SMEs convert their vehicles and save on their fuel bill. CNG Holdings has filling stations in Langlaagte, Dobsonville, Vanderbijlpark, and Pretoria. 

The kit can be purchased or financed and can be easily installed by CNG Holding’s approved workshops. NGV Gas is currently converting petrol and diesel vehicles up to 185KW for less than R20 000. Despite the soaring price of petrol and diesel (pricing subject to change), SMEs can survive. For information on converting your vehicle to Natural Gas, contact CNG Holdings on 0860 116 917.

Reducing Energy Costs for SMEs

Small to Medium Enterprises (SMEs) are a cornerstone of South Africa’s economy. The government’s National Development Plan 2030 (NDP 2030) looks to SMEs as the major sources of employment and drivers of growth in our economy. 

Energy, under its operational cost, is one of the many expenses faced by the SME.  Sourcing a reliable source that is not overly expensive is essential to keeping these businesses functioning, every rand counts to these businesses. 

Natural Gas is cost-effective with stable prices that do not fluctuate with the price of petrol, diesel or electricity. It burns cleaner than many commercially and industrially used sources of energy. 

Natural Gas Consumption around the World

Across the globe, businesses are increasingly relying on Natural Gas to run profitable businesses. 

“Trinidad and Tobago, Brunei, the United Arab Emirates, Belarus, Oman, Tunisia, Azerbaijan, Algeria, Moldova, and Singapore generate 91-99.6%, and Bangladesh and Nigeria more than 80% of their electricity from natural gas” WorldAtlas

There is a global receptiveness to the use of Natural Gas. The increase in the use of Natural Gas is also closely linked to its environmental benefits when compared to other fossil fuels, particularly for its ability to maintain great air quality and low greenhouse gas emissions even at its peak use. This is great news for SMEs in South Africa considering the emerging of the Carbon Tax Bill! 

The Future of Natural Gas supply

Historically, the use of Natural Gas has been constrained due to deficiency in the required infrastructure. This explains why South African seems far behind when compared to the rest of the world with regards to Natural Gas conversions. 

However, CNG Holdings, having seen this hurdle, through its division, the Virtual Gas Network, introduced a simple and reliable way to access Natural Gas, even in areas that do that have the traditional Natural Gas

infrastructure! The Virtual Gas Network supplies compressed natural gas through a virtual gas distribution network. Through this innovative modular road transport system, the Virtual Gas Network can safely and economically transport natural gas to refuelling stations, gas distribution networks, industries, power generation systems, as well as to customers who are not on an existing gas pipeline. This trailer road distribution system is ideal for SMEs that require a reliable and inexpensive source of energy that assures quality energy at an affordable rate. These businesses cannot afford to have any downtime on production! 

The conversion to Natural Gas could help small businesses lower their operation costs and focus on providing high-quality goods and services to their customers. The supply of Natural Gas for commercial and industrial use continues to grow due to the emergence and advancement of key technologies that unlock the supply of Natural Gas.