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Firm plans to deploy 400 natural-gas refuelling sites across SA

26th April 2019

By: Schalk Burger

Creamer Media Senior Deputy Editor

     

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Natural-gas distributor Delta Natural Gas (DNG) Energy is rolling out 400 natural gas refuelling sites across South Africa for the taxi and freight industries, which will provide an immediate cost reduction of 25% for these industries and reduce their carbon emissions, says DNG Energy CEO Aldworth Mbalati.

Natural gas is less environmentally damaging than petroleum-based fossil fuels and is a so-called transition fuel that releases less carbon dioxide and other harmful pollutants, such as sulphur dioxide and nitrogen oxides commonly released during coal- and diesel-fired processes.

DNG Energy is first targeting the transport sector because the use of natural gas has been proven in pilot projects among taxis in Johannesburg, and in public transport systems in Tshwane, among other use cases.

Estimates show that there are almost 500 000 taxis in South Africa, which collectively travel a distance approximately equivalent to travelling to the moon and back seven times a day. Converting 20% of them to run on natural gas would save about R13-billion a year for the industry, adds Mbalati.

DNG Energy is establishing the refuelling stations at taxi ranks and existing fuel stations serving the taxi and trucking industries. The forecourts will be fully digital, which helps to reduce security risks and improve safety for taxi drivers, owners and commuters, he says.

Additionally, the forecourts of existing fuel stations can readily be converted to dispense compressed natural gas and liquefied natural gas (LNG) by replacing the dispensers and adding an LNG storage tank and compressor.

“Cars can readily be converted to run on natural gas in a process that takes less than a day and does not affect the warranties of the vehicles. Additionally, many automotive manufacturers have introduced natural gas versions of their vehicles, including Mercedes- Benz, BMW and Ford.”

Following its initial use for transport, natural gas has become a flexible and scalable energy source that can be used by industries and large-scale utilities, he says.

Natural gases can also be used by industries, including energy-intensive industries such as the glass-making, steelmaking and aluminium industries, and utilities, to reduce energy costs. There is significant exploration and discoveries of natural gas taking place across Africa, which is improving supply.

However, it is also well suited to use in remote and microgrid applications at a lower cost than State-owned power utility Eskom is to provide electricity, highlights Mbalati.

A natural-gas generator can, for example, power a small community and the fuel can be replenished by truck or gas pipes, if available. Such systems are quick to deploy and can provide steady, uninterrupted power for communities and businesses.

“Offsetting crude oil and petroleum-based imports with natural gas imports will immediately help to improve South Africa’s trade balance of payments. Additionally, the lower costs can prove to be a boon to the manufacturing industry’s competitiveness, as well as providing a lower-cost and reliable feedstock for the chemicals and petrochemicals industries.”

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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