Shell and Volvo in LNG fuel collaboration
Mar 27, 2013
Shell and Volvo Trucks have entered into a joint cooperation agreement to help develop Liquefied Natural Gas (LNG) as a fuel option for heavy duty truck operators. Shell believes that natural gas could form a bigger part of the transport energy mix, alongside developments in areas such as greater vehicle efficiency, biofuels, hydrogen and electric mobility.
Volvo and Shell are working together in areas where they complement each other including technical, commercial and regulatory developments in LNG. The agreement aims to provide a complete solution to customers to help them convert to LNG as a fuel. This non-exclusive agreement focuses primarily on North America and Europe.
Lauran Wetemans, General Manager for Downstream LNG at Shell said: “For heavy duty truck operators, especially those looking to invest in a new fleet, LNG can be a cost competitive fuel choice compared to conventional diesel. By collaborating with Volvo, and with our in-depth knowledge of LNG and commercial fuels we are well placed to bring LNG Fuel another step closer to our customers.”
To generate traction in customer adoption of LNG fuelled heavy duty trucks, standardisation of safety codes, operating standards and technical specifications are priority areas. Shell and Volvo Trucks will collaborate on technical matters such as fuel quality across markets, engine compatibility and well to wheel emissions monitoring. The companies intend to help develop HSSE and operating standards and focus on developing heavy duty truck operators’ understanding of LNG as a fuel.
LNG is natural gas that has been cooled to -162 C, the point that it becomes a liquid, at normal atmospheric pressure. As a transportation fuel it has the potential to provide economic and some environmental benefits as compared to conventional diesel.
Shell has many decades of experience in LNG production and shipping and is at the forefront of developing LNG into a viable fuel option for commercial customers. Shell has already announced an investment decision to develop the production and refuelling infrastructure to supply LNG along a truck route in Alberta, Canada. Shell recently announced a final investment decision on two small-scale liquefaction units which will form the basis of two new LNG transport corridors in the Great Lakes and Gulf Coast regions in North America.
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