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Imperial has joined forces with South African liquefied natural gas (LNG) supplier, DNG Energy, 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.
Imperial's Group CEO, Mohammed Akoojee, says, "One of Imperial's strategic pillars is integrating environmental, social and governance practices into our business activities, and 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. 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."
Aldworth Mbalati, Group CEO of DNG Energy says, "We are excited to partner with Imperial on this journey to decarbonise the transport logistics industry. This move is significant for DNG because our goal is to offer a cleaner energy source that enables our customers to be more competitive, while contributing towards 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."
"This 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. 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."
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 a liquid form. The results of the pilot will go a long way towards ensuring that LNG is adopted as a credible transition fuel that will take South Africa towards a cleaner future.