On April 18, 2023, Tourmaline Oil Corp., Clean Energy Fuels Corp., and Mullen Group Ltd. announced a groundbreaking $70 million Joint Development Agreement to construct a network of compressed natural gas (CNG) stations across Western Canada. The collaboration aims to revolutionize the trucking industry by transitioning heavy-duty trucks and commercial transportation fleets to the use of CNG, a lower emission alternative.
Canada’s largest natural gas producer, Tourmaline, in partnership with Clean Energy, a leading fuel service provider, will jointly invest in constructing and operating up to 20 CNG stations over the next five years. Mullen Group, one of North America’s largest logistics companies, is first to support the initiative, utilizing the network to fuel its growing fleet of CNG powered trucks.
With its first location operational north of Edmonton, a strategically located station, the venture has begun a transformative journey for Class 8 trucking in Western Canada. Additional stations in Calgary, Grande Prairie (Alberta), and Kamloops (British Columbia) are set to commence operations in the first half of 2024. This ambitious project aims to have around 20 stations fuelling approximately 3,000 natural gas-powered trucks daily, resulting in an impressive reduction of 72,800 tonnes of CO2 emissions per year. This is equivalent to removing 15,690 passenger vehicles from the road. Furthermore, the adoption of CNG presents substantial cost savings, with fuelling vehicles currently offering up to 50% lower costs compared to retail diesel prices.
This joint effort not only aligns with the Government of Canada’s emission reduction targets but also embraces a free-market approach to emission reduction in the long run. It highlights the immediate and significant potential of CNG for lowering the environmental impact of trucking fleets. Moreover, it lays the groundwork for the future integration of renewable natural gas (RNG) as existing CNG infrastructure can seamlessly accommodate this resource as it becomes more readily available.
The collaboration between Tourmaline Oil, Clean Energy Fuels, and Mullen Group marks an important milestone in the journey toward lower emissions by providing an economical, convenient, and reliable pathway for the trucking industry to transition to CNG. It represents a pivotal step towards a cost-effective future for the trucking industry in Western Canada.