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The Growth of the Gas-Powered Vehicle Market

Written by Paulo Nogueira
Published on 11/02/2022 at 15:35
O Crescimento do Mercado dos Veículos Movidos a Gás
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The use of gas (CNG or Biomethane) as fuel in light and heavy vehicles is one of the solutions found as an alternative to gasoline and diesel with the aim of reducing pollution.

In Rio de Janeiro, the use of CNG in passenger vehicles is common, being a solution based on the cost-benefit of the product and currently helping to combat GHG (greenhouse gases).

Through Environmental Governance (ESG), companies have been demanding an “environmentally correct” behavior from the market. With that in mind, as an alternative to diesel and gasoline, it is possible to observe some trucks and agricultural machines powered by gas. This technology, which utilizes Otto cycle engines, allows the use of both CNG (fossil fuel, but less polluting) and Biomethane (gas obtained through anaerobic fermentation of organic material).

The graph below shows the evolution of heavy vehicles powered by gas in 2021.

Graph comparing growth of gas vehicles 2020/2021
Graph Comparing Growth of Gas Vehicles 2020/2021Via Carcon Automotive

The Companies That Have Opted for This Market Niche Are Betting That:

  • Gas Will Be a Transition Element Until Electrification;
  • The Replacement of CNG by Biomethane in Specific Locations Could Be a Market Niche, Such as Sugarcane Mills That Use Sugarcane Bagasse and Vinasse to Produce Biomethane and Subsequently Fuel Their Fleets;
  • Getting Ahead in the Process of Reducing Pollutant Emissions by Associating with “Green” Companies That Care About the Environment.

It is worth noting that the heavy vehicles we see circulating in the fleet with this technology were already developed in Europe and comply with the EURO VI standard (which will come into effect in Brazil in

2023). According to experts, vehicles that come with factory gas engine technology are 100% reliable regarding emission standards. However, vehicles that make adaptations must do so at specialized companies to ensure that the adaptation meets emission standards.

To promote the use of this fuel in Brazil, several actions are necessary, and among them, we highlight the two that generate the most debates:

  1. Infrastructure for Gas Pipelines,
  2. Tax Incentives for the Price of Gas.

The potential of Biomethane in Brazil is very large, still underexplored, but the mapping of possibilities has already been raised by sector associations.

Today, the country wastes 100 million m³ of renewable methane per day, which is equivalent to 35% of the electricity consumed in Brazil and 70% of diesel. The sugar-energy sector accounts for 50% of the potential of biogas, which reaches 57.6 million m³/day (source: Abiogás).

Carcon Automotive closely monitors the evolution of alternative fuels and offers a range of studies for those interested in entering this market.

Source: Carcon Automotive/ Via: A Fonte Comunica

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Paulo Nogueira

Graduated in Electrical Engineering from one of the country's technical education institutions, the Instituto Federal Fluminense - IFF (formerly CEFET), he worked for several years in the offshore oil and gas, energy, and construction sectors. Today, with over 8,000 publications in online magazines and blogs on the energy sector, the focus is to provide real-time information on the Brazilian job market, macro and microeconomics, and entrepreneurship. For questions, suggestions, and corrections, please contact us at informe@clickpetroleoegas.com.br. Please note that we do not accept resumes at this contact.

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