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Driving Toward a Cleaner Future

Sep 19, 2025 | 0 comments

Alternative Fuels in Canada’s Commercial Trucking Industry

As the global push for sustainability continues to grow, Canada’s commercial trucking industry finds itself at a critical turning point. Medium- and heavy-duty vehicles account for approximately 27% of transportation-related greenhouse gas (GHG) emissions in Canada, making the search for viable fuel alternatives both an environmental consideration and an operational priority. (1)

National Initiatives and Emerging Technologies

The Government of Canada has introduced several programs to support the adoption of lower- and zero-emission vehicles. Among them, Transport Canada’s Zero-Emission Trucking Program (ZETP) commits $75.8 million over five years, starting in 2022/23. The program aims to accelerate the adoption of medium- and heavy-duty zero-emission vehicles (MHZEVs), support research and development, and update training, codes, and standards to prepare for a changing fleet landscape. More about the program’s activities and a report on battery technologies for electric long-haul trucks can be found on their website, along with a meta-analysis of trucking routes in Canada to specify vehicle technology requirements. (2)

At the same time, a number of technologies are being explored in British Columbia and across the country. These include:

Battery-electric trucks: offer zero tailpipe emissions; however, current range, charging times, and payload limits present challenges for long-haul applications.

Hydrogen fuel-cell trucks: producing electricity on board with only water vapour as a by-product, and providing extended range and faster refuelling, though hydrogen infrastructure and cost remain key barriers.

Compressed and liquefied natural gas (CNG/LNG): lowering some emissions compared to diesel and offering potential cost savings, while requiring dedicated fueling infrastructure and specialized vehicle designs.

Renewable natural gas (RNG) and other renewable fuels: blending into existing systems to reduce emissions with fewer changes to current operations.

Each option has distinct advantages and challenges, and the industry continues to assess which solutions are the most practical and cost-effective for different applications.

Battery-electric trucks are powered entirely by rechargeable battery packs, producing zero tailpipe emissions and lower noise pollution. For local delivery applications, where daily mileage is predictable and access to charging infrastructure is feasible, battery-electric trucks are becoming more of an option.

Hydrogen fuel-cell trucks generate electricity on board by combining hydrogen with oxygen in a proton exchange membrane (PEM) stack. This reaction produces water vapor, resulting in zero tailpipe emissions. Fuel cell electric vehicles (FCEVs) could potentially achieve twice the efficiency of internal combustion engines, making them more suitable for heavy-duty long-haul freight routes.

Additionally, FCHTs are reported to maintain more consistent power in cold weather, which is an advantage with BC’s topography. (3) Hydrogen technology is still developing, but its potential is promising. Further testing is necessary to assess its long-term viability.

Compressed Natural Gas (CNG) and liquefied natural gas (LNG), renewable and conventional, are other promising alternatives. CNG, which is methane compressed to about 1% of its atmospheric volume, is attractive to trucking fleets due to its cleaner combustion profile and commercial viability. Compared to diesel, CNG potentially offers:

Up to 30% lower greenhouse gas emissions, 95% fewer nitrogen oxides, and almost zero particulate matter emissions (4)

Fuel cost savings of up to 50%, when compared on an energy-equivalent basis to diesel (5)

Lower maintenance costs, as CNG engines bypass costly diesel after-treatment systems like diesel particulate filters and selective catalytic reduction catalysts (4)

LNG, which is methane chilled to a liquid state to increase energy density, provides a high-capacity alternative to CNG. Trucks powered by LNG are expected to allow for extended range and are considered more suitable for heavier-duty cycles. Compared to diesel, LNG:

Reduces GHG emissions by roughly 25%

Lowers nitrogen oxide emissions by 85%

Nearly eliminates sulphur oxide and particulate emissions (6)

Although CNG and LNG are fossil fuels, they generate significantly lower tailpipe emissions compared to diesel. This makes them effective transitional technologies for long-range trucking, helping to bridge the gap until hydrogen fuel cell electric vehicles or battery electric vehicles become commercially viable. Additionally, alternative fuel trucks, including those using hydrogen, LNG, and CNG, benefit from higher allowable gross weight limits of up to 65,000 kg. (7)

British Columbia: A Leader in Sustainable Trucking

British Columbia has emerged as a frontrunner in adopting alternative fuels within the trucking industry. The province’s plan sets ambitious targets, including a 20% low-carbon fuel standard and building up BC’s capacity to produce at least 1.5 billion litres of renewable fuel annually by 2030. Approximately 30% of the anticipated emission reductions are expected to come from cleaner transportation initiatives. (8)

BC Trucking Association member, HTEC, is at the forefront of hydrogen technology, spearheading initiatives like the H2 Gateway Program. Announced in June 2024, this initiative plans to:

Deploy 100 hydrogen fuel-cell heavy-duty trucks across the province

Build up to 20 new refuelling stations (18 in BC)

Support three hydrogen production facilities in Burnaby, Nanaimo, and Prince George, as well as a liquefaction plant in North Vancouver processing up to 15 tonnes of by-product hydrogen per day.

These trucks are projected to reduce GHG emissions by up to 92% relative to diesel when using low-carbon BC sourced hydrogen. (9) Currently, HTEC operates five hydrogen stations in the Metro Vancouver/Vancouver Island region and plans to scale that network to 14 heavy-duty stations across BC. (10)

Natural gas (renewable and conventional) also offers reductions in GHG emissions and fuel costs. A joint initiative by Tourmaline Oil Corp. and Clean Energy Fuels Corp. aims to construct up to 20 CNG stations across Western Canada, including Kamloops and Fort St. John in BC. This $70 million investment seeks to facilitate the transition of heavy-duty trucks to CNG, providing a lower-emission option for fleets. (11)

FortisBC is actively designing, constructing, and commissioning both CNG and LNG fueling stations across BC, tailored specifically for commercial fleets. They are currently planning to expand their Tilbury LNG Facility to meet rising demand. The proposed project includes a $400 million expansion to enhance liquefaction capacity and triple the current storage capacity. If approved, construction is expected to start as early as 2026. (12) The company has also invested heavily in vehicle rebates and incentives, providing nearly $2.3 million in capital incentives in one year to support LNG and CNG adoption among fleets across BC.14 Through its Clean Growth Innovation Fund, FortisBC invests in low- and zero-carbon gas projects, including research to integrate hydrogen and renewable natural gas (RNG) into its system. As of July 1, 2024, they became the first North American utility to automatically blend 1% RNG into the gas system, with plans to increase the RNG content over time to support deeper emissions reductions. (13)

Across the province, over 900 natural gas vehicles – both LNG and CNG – are used by carriers, including BC Trucking Association members Arrow Transportation, ColdStar Solutions, Denwill Enterprises, GFL Environmental, Ken Johnson Trucking, McRae’s Environmental Services, and Sutco Transportation, to name a few. (14,15)

Incremental Improvements

While alternative fuels represent a significant opportunity to reduce emissions, many fleets are also pursuing incremental improvements that deliver meaningful reductions in fuel use and environmental impact without requiring a complete shift away from diesel in the short term. These strategies include:

Aerodynamic upgrades , such as cab fairings and side skirts, to reduce drag and improve fuel economy

Low rolling-resistance tires to optimize efficiency and extend tire life

Use of renewable diesel / R100- using existing engine technology but switching to cleaner fuel sources

Fuel efficiency programs , including driver training, telematics, and measurement of emissions per kilometre

Preventive maintenance practices that keep engines and vehicle systems operating efficiently

Arrow Transportation Systems, a BC Trucking Association member since 1958, has set an annual target of reducing carbon emissions by 2%, even while growing its fleet of 468 tractors and 1,204 trailers. By adopting incremental strategies, over the past three years, Arrow has achieved a 7.54% reduction in carbon dioxide equivalent emissions. (16)

The CleanBC Heavy-Duty Vehicle Efficiency (HDVE) Program

Since its launch in 2019, the CleanBC Heavy-duty Vehicle Efficiency (HDVE) Program delivered significant, measurable results for the industry. Administered by the BC Trucking Association (BCTA), the program combined a fuel efficiency management course with capital incentives for approved fuel-saving technologies, enabling fleets to implement both operational and equipment-based improvements. In the past five years, the HDVE Program trained more than 570 participants representing over 450 companies and supported investments in proven fuel-saving technologies across hundreds of fleets. Collectively, these actions are estimated to have reduced diesel consumption by more than 113 million litres and cut 307 million kilograms of carbon dioxide equivalent emissions annually. This is equal to taking more than 65,000 passenger vehicles off North American roads each year. Results from the CleanBC HDVE Program provide a clear baseline for emissions reductions that can be achieved through efficiency-focused interventions in heavy-duty trucking.

Eco-Certification for Carriers

BCTA’s Clean Carrier Program is more than a certification; it is a roadmap for carriers dedicated to sustainable operations. By participating in this program, carriers stand to gain tangible benefits, including enhanced cost efficiency, increased market competitiveness, and strengthened relationships with stakeholders. The program offers a platform for carriers to showcase their dedication to environmental responsibility and provides exclusive resources to support their journey. BCTA members can begin the process by completing the pre-application form available on BCTrucking.com.

Operational Realities & Challenges

Despite compelling climate and cost advantages, the commercial trucking in Canada, particularly British Columbia, faces considerable challenges in moving away from diesel fuel:

High capital costs & total cost of ownership: Zero-emission technologies, such as battery-electric and hydrogen fuel-cell trucks, often have price tags that are four to eight times higher than conventional diesel vehicles. While operational savings may help offset some of these initial costs, achieving cost parity is highly unlikely without a significant change in upfront costs.
Insufficient infrastructure & “chicken-and-egg” effects: The lack of hydrogen refuelling stations and limited CNG/LNG dispensing locations, often restricted to captive facilities, creates significant barriers to adoption. Fleet operators are reluctant to switch to alternative fuels without reliable fueling infrastructure, while infrastructure developers are hesitant to build without a demonstrated demand from fleets. This gap in infrastructure severely limits the ability to scale up alternative fuel use.
Payload, range, and vehicle design constraints: Both hydrogen and CNG/LNG systems require specialized high-pressure or cryogenic tanks, which can add weight, occupy space, or reduce cargo capacity. Additionally, battery-electric trucks face challenges related to range, elevation, and weight, which can compromise freight capacity and operational efficiency, especially on British Columbia’s mountainous routes.
Uncertainty in supply chains and downtime: Availability of specialized parts (i.e. hydrogen tanks, fuel-cell stacks, high-capacity batteries), remains limited and often depends on a small number of international manufacturers. Service networks are still developing, meaning downtime can be longer if a vehicle requires specialized expertise or parts not readily available in your area. Fuel supply also presents uncertainties, depending on areas where these fuel volumes are constrained or concentrated.

Transitioning to alternative fuels in Canada’s commercial trucking sector presents both a complex challenge and a significant opportunity. British Columbia’s proactive approach, highlighted by substantial investments and innovative projects, positions the province as a leader in sustainable transportation. However, addressing industry concerns, ensuring infrastructure readiness, and supporting local producers are crucial for a successful transition.

As the trucking industry explores its options, the BC Trucking Association continues to work with members to identify solutions that are both environmentally effective and operationally realistic. The path forward will not look the same for every fleet. Geography, freight type, duty cycle, and cost considerations all play a role in determining which fuel type, or combination of fuel types, works best in practice. BCTA’s role is to ensure that members have access to the information, partnerships, and advocacy needed to evaluate these options and make informed decisions.

As BCTA continues to advocate for practical and effective solutions, collaboration between government, industry stakeholders, and innovators will be crucial in driving the sector toward a cleaner and more sustainable future. We will continue to work closely with its members to assess technologies, share lessons learned, and advocate for infrastructure and policy support that help ensure cleaner, safer, and more efficient highways for the future.

References:

[1] https://tc.canada.ca/en/binder/43-incentives-medium-heavy-duty-zero-emission-vehicles-program-imhzev

[2] https://tc.canada.ca/en/road-transportation/innovative-technologies/zero-emission-vehicles/zero-emission-trucking-program

[3] https://natural-resources.canada.ca/energy-sources/clean-fuels/hydrogen-canada

[4] https://www.fortisbc.com/services/lower-carbon-transportation/reference-guide-for-dealerships

[5] https://www.cleanenergyfuels.com/press-room/tourmaline-and-clean-energy-announce-70-million-jointdevelopment-agreement-to-build-cng-stations-in-western-canada

[6] https://www.biv.com/sponsored/using-bcs-lng-ship-fuel-can-reduce-global-emissions-8255810

[7] https://news.gov.bc.ca/releases/2021TRAN0035-000920

[8] https://www2.gov.bc.ca/gov/content/industry/electricity-alternative-energy/powering-our-future

[9] hhttps://www.htec.ca/100-fuel-cell-electric-trucks-a-reality-for-bc-through-htecs-h2-gateway-program

[10] https://www.htec.ca/h2gateway/

[11] https://www.cga.ca/energy-magazine-post/revolutionizing-western-canadas-trucking-industry-with-cng-stations