Use of gas (CNG or Biomethane) as fuel came to save the consumer's pocket and becomes the best alternative to replace gasoline and diesel in light and heavy vehicles, in addition to reducing pollution

Market for gas-powered vehicles grows in Brazil: alternative fuels come to save the pocket of the consumer, who suffers from constant hikes in gasoline and diesel prices

The use of gas (CNG or Biomethane) as fuel in light and heavy vehicles is one of the solutions found as an alternative to the use of gasoline and diesel in order to reduce pollution and also for those who want to ease their pockets with the constant skyrocketing prices. of fuels.

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

Through Environmental Governance (ESG), companies have been demanding an “environmentally correct” behavior from the market. Thinking about it, as an alternative to diesel and gasoline, it is possible to observe some trucks and agricultural machines powered by gas. This technology, which uses Otto cycle engines, allows the use of both CNG (fossil fuel, however, less polluting) and Biomethane (gas obtained by anaerobic fermentation of organic material). In the graph below, it is possible to see the evolution of gas-powered heavy vehicles in the year 2021.

The companies that opted for this market niche are betting that:

• Gas will be a transitional element towards electrification;
• The replacement of CNG by Biomethane in specific locations can be a niche market for, for example, sugarcane mills, which use sugarcane bagasse and vinasse to produce biomethane, and then feed their fleets;
• To anticipate the process of reducing the emission of pollutants, making them associate with “Green” Companies, which are concerned with the environment.

It is worth mentioning that the heavy vehicles that we see circulating in the fleet with this technology have already been developed in Europe and comply with the EURO VI standard (which will become effective in Brazil in 2023). According to experts, the vehicle that has the factory gas engine technology is 100% reliable with regard to emission standards. However, vehicles that make adaptations must carry them out in specialized companies, in order to make sure that the adaptation will meet the emission standards.

In order to encourage the use of this fuel in Brazil, some 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 and still little explored, but the mapping of possibilities has already been raised by industry 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 corresponds to 50% of the biogas potential, 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 anyone interested in entering this market.

Oil prices could soar to $150 a barrel and gasoline become even more expensive if Russia's crude oil exports are affected by tensions with Ukraine

According to JPMorgan's projections, oil prices could soar to $150 a barrel if Russia's crude oil exports are affected by tensions with Ukraine. An energy expert also guarantees that if there was a war between Russia and Ukraine, gas and oil prices would skyrocket. A barrel of oil would exceed $100 and, in the United States, a gallon of gasoline could reach $4.

JPMorgan highlights how a potential invasion of Ukraine would have large ripple effects, which would be felt by inflation-weary consumers around the world. “Any interruptions to oil flows from Russia, in a context of low unused capacity in other regions, could easily send oil prices towards $120,” wrote Natasha Kaneva, head of global commodities strategy at JPMorgan, in the report Published late last Tuesday.

A spike of $91 in the price of a barrel of oil, which reached a new seven-year high last Wednesday, would further increase fuel prices at the pump.

JPMorgan has warned that if Russian oil exports are cut in half, Brent crude prices would likely surge to $150 a barrel. The all-time high for oil prices was set in July 2008, when Brent rose to a record high of $147,50 a barrel. Read the full story HERE.