South African liquefied natural gas (LNG) supplier DNG Energy and JSE-listed Imperial Logistics have joined forces to test the feasibility of using LNG as an alternative to diesel in a pilot that will proactively respond to the drive towards a net-zero carbon transport sector in South Africa.

The pilot will run for six months and DNG Energy will be responsible for designing, manufacturing and supplying the associated LNG dispensing and storage equipment, such as cryogenic tanks that keep natural gas in liquid form.

The results of the pilot will go a long way toward ensuring that LNG is adopted as a credible transition fuel that will take South Africa towards a cleaner future, which DNG CEO Aldworth Mbalati says will enable customers to be more competitive, while contributing to significantly reducing their environmental footprint.

“Imperial’s operations in South Africa and across the African continent offer a tangible platform to show how LNG can optimise trade for companies and reduce costs,” he notes.
 
The partnership comes at a time when the world is seeking cheaper alternatives to traditional sources of fuel.

Global demand for LNG experienced rapid growth from near-zero levels in 1970 to a meaningful market share today, with half the demand coming from Asian and European countries.

Mbalati explains that the LNG industry is booming as industrial and commercial customers in the manufacturing, power generation, mining and agricultural segments turn to LNG to reduce their cost of energy use and carbon tax.

“We look forward to the outcomes of the pilot and contributing towards the body of knowledge in this space.”
 
Imperial CEO Mohammed Akoojee, meanwhile, refers to one of Imperial’s strategic pillars as integrating environmental, social and governance practices into its business activities.

This partnership, alongside other initiatives, is “an exciting step in Imperial’s journey towards gaining important insights that position us at the forefront of alternative energy fleets”, he comments.

“Not only does it demonstrate our commitment to a just transition to a low carbon economy, but it also enables us to provide our sustainability-conscious clients and principals with substantially greener supply chain solutions.”