Dual-listed natural gas and helium producer Renergen, through its subsidiary Tetra4, has signed agreements with transport company Timelink to supply liquefied natural gas (LNG) and displace a significant portion of diesel in Timelink's line-haul fleet.
Timelink will also convert its fleet to operate on diesel dual fuel (DDF) technology.
Timelink is a privately owned logistics company headquartered in Cape Town and operating nationally. The company offers specialist services in long-distance transport.
"As fleet operators, we are always looking to reduce our carbon footprint, enhance fuel efficiency and reduce costs. Introducing LNG to displace diesel in our fleet just makes sense,” Timelink CEO Kamal Mitoo says.
Renergen CEO Stefano Marani adds that "the adoption of sustainable solutions in business has reached a tipping point. Partners like Timelink are among those leading the pack”.
“Timelink now has a distinct advantage over competitors when speaking to customers demanding a lower-carbon footprint from their logistics suppliers, as well as enjoying a reduced operating cost and increasing operational flexibility," he says, pointing out that LNG, when used as a substitute for diesel in trucks, “not only results in significant cost reduction but has the added benefit of reducing greenhouse-gas emissions".
Renergen COO Nick Mitchell highlights that, while over 24-million vehicles worldwide operate on natural gas and this figure is set to double in the next decade, “the importance of this first significant partnership with a line-haul transport client lies in demonstrating the results in a South African context”.
Significant reductions in carbon dioxide, nitrogen oxides and particulate emissions are some environmental benefits of natural gas over diesel.
“Fuel savings are very important to the transport industry, and this is where Tetra4's natural gas can significantly assist haulage companies in improving profitability,” the company says.
Renergen's Virginia Phase 1 liquefaction plant will produce about 50 t of LNG daily, while Virginia Phase 2 will see this increase to about 680 t, or 940 000 diesel litre equivalent, a day.
Virginia’s Phase 2 is planned to be operational in 2026.
Renergen will have multiple LNG filling points across South Africa that will deliver the LNG fuel to selected customers across all the major highways once the project is in its second phase.