Utilisation of liquefied natural gas as energy by heavy-duty vehicles in South Africa
Date
2024
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
University of the Witwatersrand, Johannesburg
Abstract
The transport sector in South Africa significantly contributes to greenhouse gas emissions, with over fourteen percent of the total emissions attributed to it. The reliance on fossil fuels, particularly diesel, for vehicular road transportation exacerbates this issue. High operating costs per kilometre of diesel negatively affect the sustainability of heavy-duty vehicle operations. To address these challenges, a conceptual framework was employed to investigate various factors influencing the decision-making process to adopt LNG as an alternative fuel. Qualitative research methods were utilised to gain insights into the owners’ environmental awareness, economic considerations, and long-term sustainability goals regarding LNG adoption. The findings reveal a growing interest among heavy-duty vehicle operators in transitioning to LNG because of its environmental benefits, cost efficiency, and long-term sustainability prospects. Key stakeholders such as vehicle manufacturers, fuel providers, and logistics services are actively exploring LNG solutions to enhance fuel diversity, reduce emissions, and achieve cost efficiencies. Volvo Southern Africa, a major heavy-duty vehicle manufacturer, is leading efforts to provide environmentally friendly solutions to the industry. Similarly, some logistics services providers are undertaking pilot programmes to explore alternative energy technologies as part of their commitment to environmental sustainability. The research underscores the potential of LNG to transform the heavy-duty vehicle sector by offering a cleaner, more sustainable fuel alternative. Analysis of the estimated payback period and net present value demonstrates the economic viability of LNG heavy-duty vehicles compared to diesel counterparts. However, to realise the full potential of LNG adoption in South Africa, investment in infrastructure for importation and distribution is crucial. Additionally, concerns about potential government levies and taxes on LNG need to be addressed to encourage its utilisation
Description
A research report submitted in partial fulfillment of the requirements for the degree of Master of Business Administration to the Faculty of Commerce, Law, and Management, Wits Business School, University of the Witwatersrand, Johannesburg, 2024
Keywords
Qualitative research, Liquefied Natural Gas, Fuel, Heavy-duty logistics industry, Environmental awareness, Economic awareness, UCTD
Citation
Tlalang, Kgosietsile. (2024). Utilisation of liquefied natural gas as energy by heavy-duty vehicles in South Africa [Master’s dissertation, University of the Witwatersrand, Johannesburg].WireDSpace.https://hdl.handle.net/10539/44481