Natural gas powers more than 150,000 vehicles in the United States and roughly 15.2 million vehicles worldwide, according to the U.S. Department of Energy. CNG and LNG are considered alternative fuels under the Energy Policy Act of 1992.
According to the DOE’s Alternative Fuels Data Center, there are 1,758 existing and planned CNG fueling stations in the U.S. and currently only 179 existing and planned LNG stations. CNG vehicles store natural gas in tanks and it remains in the gaseous state. More fuel can be stored onboard a vehicle using LNG because the fuel is stored as a liquid, therefore making its energy density greater than CNG. This makes LNG well-suited for Class 7 and 8 trucks requiring a greater range.
Source: Dept. of Energy
Creating a global compression portfolio: Landi Renzo and Clean Energy to merge their compressor businesses
Italy’s SAFE and Canada’s Clean Energy Compression, subsidiaries of Italy’s Landi Renzo and California’s Clean Energy Fuels Corp. (ticker: CLNE), have signed a merger agreement that sets up a new company, combining 100% of SAFE and 100% of Clean Energy Compression.
“The world is rapidly waking up to the harmful impact that diesel is having on air quality,” said Landi Renzo CEO Cristiano Musi. “Natural gas is an obvious alternative for vehicles because it burns much cleaner, is plentiful around the world, and there is a growing engine portfolio to choose from. This newly formed compressor company will be uniquely positioned to take advantage of the trend towards natural gas with a global footprint and a great product offering.”
The new company, currently unnamed, will focus on compressors for compressed natural gas (CNG) and renewable natural gas (RNG) at a global level. The new company is expected to be operational from the beginning of January 2018 and the merger should close before the end of 2017. The new company’s operational headquarters will be in San Giovanni Persiceto, Italy. The new company will be owned in majority by Landi Renzo, with a 51% share. The remaining 49% will be held by Clean Energy Fuels Corp. The board of directors will be made of seven members, four will be appointed by Landi Renzo. Landi Renzo CEO Cristiano Musi will hold the same position in the new company. Clean Energy Fuels Corp. CEO Andrew J. Littlefair will be appointed non-executive chairman. Clean Energy’s manufacturing operation will remain in Chilliwack, British Columbia, Canada.
Revenues expected for 2018 for the combined businesses are approximately €58 million ($69 million) with +17% CAGR at 2022 (estimated turnover at about €107 million, or $127 million) and adjusted EBITDA equal to €4.9 million ($5.8 million), to reach €21.6 million ($25.7 million) at the completion of the plan.
Landi Renzo said that the new company will serve the growing market of customers that need alternative fuels to meet strict environmental policies.
Europe is moving faster toward natgas vehicles
French transport firm Jacky Perrenot plans to run 1000 natural gas-fueled vehicles by 2020, the company said.
LNG World reports that Jacky Perrenot has placed a new order with Iveco for 250 natural gas-fueled trucks, adding to 250 trucks ordered last year. The latest order includes nearly 200 vehicles with the recently unveiled LNG engine, for operation throughout France.
By the end of 2018, the company will be running nearly 550 Iveco trucks.
Food and construction sector demand
Perrenot Group’s transport unit CEO Philippe Givone, said, “Our ambition is to reach the goal of exceeding 1,000 gas vehicles in our fleet before the end of 2020. After the strong development of the food sector we now have strong expectations in the construction sector.”
Demand for LNG is growing rapidly in Europe as the German Federal Ministry of Transport and Digital Infrastructure (BMVI) has identified LNG as the best solution for long-distance haulage in the short term and for the next 10 to 15 years, LNG World reported.
