Ontario Becomes Third in Canada to Support NGV Deployment

Ontario Becomes Third in Canada to Support NGV Deployment

The Canadian Province of Ontario is joining Quebec and British Columbia as the third Canadian

jurisdiction that has chosen natural gas for medium and heavy vehicles as a key element in their climate

change plans. Transportation represents one of the largest challenges Ontario faces in achieving its

emission reduction targets. In recognition of this, the Climate Change Action Plan includes an action area

that specifically targets low-carbon and zero-emission transportation. The Canadian Natural Gas Vehicle

Association (CNGVA) sees major opportunities for natural gas fueled transportation to thrive under

proposed incentives.

Ontario, Quebec and British Columbia account for about 68 per cent of Canada’s economy. CNGVA

believes there is a market opportunity of 600,000 on-road vehicles for the natural gas vehicle industry

across these jurisdictions. As an emissions reductions opportunity these vehicles could contribute

between seven and 15 Megatonnes in reductions.

CNGVA explains there are few details currently available from the Government of Ontario, but which


Green Commercial Vehicle Program will provide incentive for emission reductions technologies,

including natural gas powered vehicles — $170 million (USD 133 m);

Natural gas vehicle infrastructure and support – Union Gas; Enbridge Gas Distribution; and the Ontario

Trucking Association — $100 million (USD 78 m);

Support for the implementation of renewable content requirement for natural gas — $100 million (USD

78 m);

Pilot project for use of renewable natural gas (RNG) in transportation — $20 million (USD 15.7 m);

CNGVA’s Executive Director, Bruce Winchester, describes this as an unprecedented opportunity for the

natural gas vehicle industry to access up to $390 million in government funding over a five year period,

beginning in 2017.

Based on the assumptions and costs provided by CNGVA to the Government of Ontario, the association

says it can estimate the magnitude of this opportunity. CNGVA has asked for assistance with the

incremental costs of natural gas vehicles – the extra costs required to equip a vehicle to run on natural

gas – on a 50/50 cost sharing basis. CNGVA has also asked for a 50/50 capital cost sharing on the

development of new natural gas refueling facilities.

Based on these assumptions, CNGVA points to the following:

Five per cent of the current medium and heavy duty fleet in Ontario is 7,000 vehicles

Funding of $220 million would provide incentives that could support the purchase of that number of

natural gas vehicles

Construction of a large natural gas refueling station in Ontario could cost as much as $ 7 million

Funding of $25 million could support the development of 12 to 16 new refueling stations

This funding could support a significant increase in both the natural gas vehicle fleets and the refueling

infrastructure. When combined with the opportunity for federal funding of refueling infrastructure –

perhaps as many as two new large refueling facilities could be supported in Ontario – there is a potential

for a very robust natural gas refueling coverage in Ontario.

CNGVA has learned from outreach hubs activities that regional and long haul trucking firms are reluctant

to adopt natural gas vehicles without clear opportunities for refueling. Of particular interest are the

opportunities for serving more than one route or corridor. Trucking firms need flexibility to maximize

the return on their fleet investments – with these new funding opportunities the natural gas vehicle

industry can build a much stronger case.

CNGVA Resources

Winchester says the industry will have to move quickly to maximize the opportunities for deployment in

Ontario. CNGVA has a number of resources that were developed to support national outreach activities,

these resources include: Go With Natural Gas website; Go With Natural Gas promotional materials, fact

sheets, training materials and videos; and the Go With Natural Gas outreach sessions.

If an organization is interested in accessing these materials or would like to organize an outreach1

session, or would like to discuss any of these items, please contact Bruce Winchester

(bruce.winchester@cngva.org) for more information.

1The Fleet Outreach Hub provides a single point of contact for fleets who are interested in natural gas

vehicles including engine technologies, vehicle range, refuelling options, approvals, safety and facility

modifications, project implementation, and economic and environmental benefits.

https://www.ngvglobal.com/blog/ontario-becomes- third-in- canada-to- support-ngv- deployment-0611

Share Button