Tourmaline Oil Corp. and Clean Energy Fuels Corp. announced a $70 million deal Tuesday to jointly build up to 20 compressed natural gas (CNG) fueling stations in western Canada, a project they announced will result in about 72,800 metric tons of emissions reductions carbon dioxide (CO2) per year.
The network, to be built over the next five years, could serve about 3,000 natural gas trucks a day, which would mean an emissions reduction “equivalent to taking 15,690 passenger vehicles off the road” annually, they said. a joint press. release
“As future demand increases, the capacity of these stations can be expanded and new stations added, which would translate into improved environmental performance,” said the 50-50 partners, who rated the GNC ” a lower carbon alternative to petrol and diesel”. The US Department of Energy defines CNG as natural gas compressed to less than one percent of its volume at standard atmospheric pressure.
Mullen Group Ltd. has already expressed interest in signing up for its CNG-powered trucks, according to the announcement.
A station in the city of Edmonton, capital of the province of Alberta, has already been commissioned and is operational as the first of the tourmaline clean energy stations. The companies hope to put the next stations into operation in the first half of 2024.
“This initiative will develop the critical infrastructure needed to support the adoption of low-carbon natural gas fuels that are commercially available today,” Tourmaline and Clean Energy said, explaining that CNG stations could also dispense natural gas renewable (RNG).
“The use of this abundantly produced and easily distributed domestic resource is expected to result in significant reductions in carbon dioxide (CO2) emissions and cost savings for Canada’s transportation industry. Currently, fueling vehicles with CNG represents a cost saving of up to 50% compared to retail diesel prices, on an equivalent energy basis,” the companies added.
Michael Rose, chairman, president and CEO of Tourmaline, said his company has been replacing higher-emitting fuels with natural gas. Tourmaline, which claims to be Canada’s largest natural gas producer, said in its 2022 earnings report that it has reduced emissions by 57,888 metric tons by replacing 91.3 million liters of diesel with natural gas at its plants. drilling rigs over the past five years.
Andrew Littlefair, president and CEO of Energia Neta, commented, “Today, Energia Neta operates the most extensive network of natural gas filling stations and is the largest distributor of GNR in North America . We continue to invest in GNR production and fuel infrastructure. necessary to provide the trucking industry with a cleaner operating alternative.”
Murray Mullen, chairman, senior executive and chairman of the Mullen Group, said of the deal, “We have already made a significant investment in CNG trucks and are very confident that this technology will play a significant role in decarbonizing our industry.” .
Alberta Premier Danielle Smith welcomed the partnership and said, “This is an exciting development for Alberta’s energy and transportation industries and an important step towards a future with fewer emissions for all Canadians.”
Tourmaline traded 0.28 percent higher at $61.38 at the close on the Toronto Stock Exchange on Tuesday when the deal was announced, while clean energy closed up 0.14 percent lower at $4.34 on the Nasdaq.
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