Methane is increasingly used to fuel heavy duty vehicles in the UK. It is used in cars elsewhere (particularly in Italy) but this is not envisaged for the UK. Fossil methane, or natural gas can achieve a GHG saving of around 15% compared to diesel, but the renewable equivalent, biomethane, can achieve savings in the region of 85% – 110%. Biomethane achieves negative carbon emissions when produced from animal manure, as it is captured instead being released into the atmosphere during manure storage. Member companies CNG Fuels Ltd and Gasrec supply biomethane in the UK, and Advanced Biofuel Solutions Ltd will produce biomethane at its Swindon Plant.
It is used either in compressed from or liquefied, and predominantly in 42 tonne Heavy Goods Vehicles (HGVs). We will talk about biomethane from now on. Compressed biomethane requires more storage space on the tractor, and is generally used on 2 axle tractor configurations. Compressed biomethane is stored at pressures of [250bar], whilst liquified is stored at 5 – 10 bar but requires refrigeration at around -160 Celsius.
Compressed biomethane (CBM) may be supplied directly or via mass balance. LNG will always be mass balanced. Mass balancing in this context is putting biomethane in the gas distribution grid in one location, and taking an equivalent amount of gas out in another location, but having the sustainability characteristics of the biomethane follow the contractual pathway taken by the gas.
Natural gas and Biomethane both pay a fuel duty of 24.7p/Kg and VAT at 20%. This fuel duty rate is fixed to 2032, with a review in 2024.
