August 1, 2005

Ottawa extends natural gas vehicle pilot project to promote commercial fleet use

OTTAWA, ONT-The federal government has extended the Natural Gas for Vehicles Market Transformation pilot project with the addition of another $1.855 million, provided by Natural Resources Canada (NRCan). The initiative is aimed at promoting the use of natural gas in the commercial fleet sector across Canada. Under the extended project, fleet owners may now receive up to $3,000 toward the installation of an advanced natural gas vehicle (NGV) conversion system. This will allow them to operate standard gasoline vehicles on natural gas using approved technology through certified conversion facilities. This project is being implemented by the Canadian Natural Gas Vehicle Alliance (CNGVA). Applicants continue to receive an incentive under the original pilot project toward the capital cost of buying or leasing a new NGV with a warranty from a vehicle manufacturer. Vehicles running on natural gas produce 21% fewer GHG emissions than their conventional gasoline counterparts. With the difference in price between Canadian natural gas and gasoline averaging 20 cents a litre in 2004, NGVs will help fleet owners save on fuel costs while helping Canada meet its commitment under the Kyoto Protocol. NRCan and the CNGVA will also continue to examine ways to enhance the availability of NGVs in the market.

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