A Primer On Canada’s Current Alternative-Fuels Landscape
By Steve Stewart
While some may wish the growth were happening at a much faster rate – or, on the contrary, not at all – there is little question that the alternative-fuels market in Canada is expanding and evolving. From-the-field evidence indicates that alternative-fuel formulations like compressed hydrogen (H2), liquefied petroleum gas (LPG, aka propane or Autogas) and compressed natural gas (CNG) are gaining at least a foothold in the country’s motor-fuels market.
Organizations like Statistics Canada, which aims to compile and provide information to the public about the nation’s economy, society and environment, suggest a number of reasons that the market for alternative fuels in Canada is beginning to expand noticeably:
The ongoing search for cleaner-burning, lower-carbon, environmentally friendly alternatives to traditional fossil fuels
Increased use of H2 and CNG in industrial applications, with some escalation in its use as a motor fuel
Advances in so-called “dual-fuel” vehicles that pair a supplemental propane or H2 fueling system with a diesel engine, in the process lessening the vehicle’s emissions and overall carbon footprint while maintaining maximum engine performance
A series of government initiatives, subsidies and licenses driving increased investment in alternative-fuel usage, particularly in the transportation market
But before any of you gung-ho retailers jump feet-first into the world of alternative fuels, be aware that they bear only a passing resemblance to traditional gasoline and diesel in the way they are processed, transported, stored, delivered, dispensed and consumed:
H2: These fueling systems don’t look like a conventional forecourt fueling system because the dispenser is typically located on the wall of a warehouse or manufacturing-type facility. That’s because today H2 is overwhelmingly used in material-handling markets, i.e., to power forklifts in large distribution centers and tow motors on the vehicles that cart luggage around airports. A typical H2-fueling setup will see 10,000 cubic feet of H2 delivered, stored and consumed at the facility over a six-month period. Since the fuel is dispensed into company-owned vehicles by a team of dedicated employees, there is no need for a payment or verification system. There are, however, a number of public H2 fueling stations popping up around the country, with the province of Alberta possessing roughly half of them and larger cities like Toronto and Montreal home to the rest.
CNG: The alternative fuel with the highest level of consumption in Canada is CNG. CNG stations are relatively common across the country’s landscape, though you might not even notice them because they can look like a typical diesel station. That means a canopy (usually no convenience store), a small office building and four to six CNG dispensers with a chain-link fence in the back corner of the property surrounding the CNG compressor, storage, and dispensing components. Most transactions at CNG stations are initiated and conducted through a pay-at-the-pump cardlock system.
Propane/Autogas: Like H2, propane consumption usually occurs at self-contained governmental refueling facilities, such as bus yards operated by school districts or municipal snow-removal or construction-equipment facilities. Currently, a little more than half of the country’s 48,000 school buses are powered by propane. The fuel also has its uses in remote or rural locations where it is delivered to the user in bulk and stored in tanks on-site before being dispensed when needed. All in all, propane/Autogas has not caught on as a motor fuel in most North American markets yet, though it is quite common in Western and Eastern European markets.
So, the main challenge for any fuel retailers who are looking to add alternative fuels to the motor-fuel menu is that each of H2, propane/Autogas and CNG has its own unique and specific transportation, storage, handling and dispensing requirements. These challenges affect a number of constituencies: 1) how the supplier receives, stores and distributes it, 2) how retailers receive and offer the fuel to their customers and 3) how vehicle drivers and operators can safely dispense it.
That means that any retailer looking to enter the alternative-fuels market needs to identify and team up with a manufacturer and supplier of the equipment required to build and optimize the performance of a safe, reliable, and certified-for-use alternative-fueling system, regardless of the fuel being offered.
In this realm, Canada is unique in that it is the only country in the world that requires the manufacturers of pressure vessels (the category under which alternative-fueling equipment resides) to apply for and receive a Canadian Registration Number (CRN) for any new products. This certification is in addition to any other applicable certifications or registrations, such as those from UL or ULC. The CRN is a unique ID number attached to all individual products and cross-referenced to the product’s serial number.
The CRN program is administered by the Government of Ontario’s Technical Standards and Safety Authority (TSSA), which is mandated to administer technical safety regulations and provide safety oversight of various industrial systems and equipment. A CRN must be issued by each of Canada’s 10 provinces and three territories for the equipment to be legally used there, with approval in one province or territory not guaranteeing approval in any others.
The Choice Is Yours
There’s an old maxim within Canada’s industrial-manufacturing industry that “as Alberta goes, so goes Canada,” so there was much rejoicing at OPW Retail Fueling (OPW), Smithfield, NC, USA, a global leader in fluid-handling solutions, when the company learned in 2024 that its new H35 Hydrogen Nozzle had received a CRN from Alberta. That’s because it’s generally accepted that once Alberta issues a TSSA-approved CRN for a product, the country’s remaining provinces and territories will follow suit pretty quickly.
Conclusion
Whether you’re pleased or frustrated with their implementation rate, alternative fuels are slowly gaining acceptance, and some have already created solid niches within Canada’s motor-fuel mix. Therefore, it makes sense to investigate whether adding an alternative-fuel program to your retail-fueling site might be beneficial. The OPW product portfolio of CleanEnergy Fueling Products makes this task easier. These products help support safe, reliable and efficient retail fueling performance within the growing world of alternative fuels.
Steve Stewart is the senior Canadian & Caribbean sales manager for OPW, based in Toronto, Canada. He can be reached at steve.stewart@opwglobal.com. OPW is fueled by excellence as it develops fueling solutions and innovations worldwide. OPW delivers product excellence and the most comprehensive line of fueling equipment and services to retail and commercial fueling operations around the globe. For more information on OPW, please go to opwglobal.com.
