Natural gas vehicles: Government of Canada increases funding for conversion systems


This release is also available in French

OTTAWA -- Today, the Government of Canada announced the extension of the Natural Gas for Vehicles Market Transformation Pilot Project. The additional $1.855 million, provided by Natural Resources Canada (NRCan), will help promote the use of natural gas in the commercial-fleet sector across Canada.

Under the extended project, fleet owners may now receive up to $3,000 toward the installation of an advanced natural-gas vehicle (NGV) conversion system. This will allow them to operate standard gasoline vehicles on natural gas using approved technology through certified conversion facilities. This project is being implemented by the Canadian Natural Gas Vehicle Alliance (CNGVA).

Applicants continue to receive an incentive under the original pilot project toward the capital cost of buying or leasing a new NGV with a warranty from a vehicle manufacturer.

"By promoting the use of natural gas in fleet vehicles that are already on our roads, Canadians will enjoy a cleaner, healthier environment," said the Honourable R. John Efford, Minister of Natural Resources Canada. "Through our ongoing support of programs like this one, the Government of Canada continues to demonstrate its commitment to addressing climate change."

Rick Thomas, President of the CNGVA, said: "Canadian NGV companies have taken a leadership role in providing NGV technology and solutions to the global marketplace. As President of the Canadian Natural Gas Vehicle Alliance, I applaud the efforts of NRCan to invest in NGVs in Canada to help meet our greenhouse gas (GHG) emissions-reduction targets and provide cleaner air for all of us." Vehicles that use natural gas produce 21 percent fewer GHG emissions than their conventional gasoline counterparts. With the difference in price between Canadian natural gas and gasoline at an average of 20 cents a litre in 2004, NGVs will help fleet owners save on fuel costs while helping Canada meet its commitment under the Kyoto Protocol.

Additionally, NRCan and the CNGVA will continue to examine ways to boost the availability of NGVs in the market. They will develop and implement a focused awareness program to engage high-consumption fuel users and demonstrate NGVs in commercial use as part of their marketing strategy.

Funding for the pilot project will come from the $9.9-million Natural Gas for Vehicles measure announced in the 2003 federal budget. The Government of Canada's approach to climate change is focused on making the right choices for Canada. This will ensure that the actions taken contribute to the long-term goals of building a sustainable economy for the 21st century, a healthier environment and strong communities, while affirming Canada's place in the world.

NRCan's news releases and backgrounders are available at

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Last reviewed: By John M. Grohol, Psy.D. on 21 Feb 2009
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