Integrated alternative and renewable energy business Renergen’s Tetra4 subsidiary has secured an agreement with fuel products distributor Black Knight Group for the sale of liquefied natural gas (LNG).
Black Knight has, in recent years, developed a logistics division to provide holistic fuel solutions for its clients.
The acquired LNG is intended to fuel about 100 trucks throughout the entirety of the agreement.
Any further increases will be dealt with under amendments to the agreements, which is critical so that Tetra4 does not oversell its LNG, Renergen CEO Stefano Marani tells Engineering News Online.
The transaction will significantly reduce carbon emissions and operator costs, while simultaneously improving vehicle lifecycle maintenance.
Marani highlights that, so far, independent trials have resulted in a more than 26% reduction in fuel costs. For example, for a typical large truck covering around 180 000 km a year, the operator should save more than R200 000 a year in fuel costs.
“There are also associated savings from a maintenance perspective, but those are hard to quantify at this stage,” he adds.
However, from an emissions perspective, the savings will vary on each brand of truck. Marani explains that, “a good rule of thumb is around a 30% reduction in greenhouse-gas emissions when running the trucks on dual fuel, which is a blend of diesel and gas together, and closer to 60% when running the truck exclusively on gas”.
In terms of vehicle lifecycle maintenance, service intervals can increase to 90 000 km if run exclusively on LNG, while a dual-fuel vehicle is recommended to maintain its existing service intervals comparable to diesel alone, despite there being improvements.
Black Knight oil CEO Jacques D’ymant says the use of alternative fuels by suppliers continues to take centre stage, thereby providing cleaner and safer solutions for businesses and the environment.
“Through our partnership with Tetra4, we can now ensure that these ongoing benefits, including cost savings, are passed on to our clients.”
Marani says Tetra4 is “proud to be associated with Black Knight as they embark on their new venture to disrupt the local logistics market using cutting-edge technology and international best practice”.
Tetra4 is a vertically integrated gas producer that holds the only onshore petroleum production licence in South Africa.