Many operators and manufacturers are pleased with the news in Chancellor Phillip Hammond’s Budget speech last month that the difference in duty for diesel in comparison with alternative fuels such as CNG and LNG has been extended for a further eight years from 2024 to 2032, with a further review in 2024.

This supports nascent technologies such as Volvo Trucks’ FH LNG and FM LNG to grow and develop in the marketplace, allowing the technology to deliver carbon savings to the early adopters.

With time to plan and allow the LNG infrastructure to grow and develop, this will further promote the widespread development of LNG for both new and future used truck sales.

The adoption of new technology requires a combined team approach from the customer, vehicle supplier, infrastructure developers and the gas suppliers who all supported discussion with the Department of Treasury on the implications for their operations.

The key driver for LNG in long haul operations is to secure both a return on the investment and a 20% reduction in tailpipe CO2.

“By ordering today the former 2024 cut off did not give the opportunity for new adopters to benefit from this technology commercially. However, the extended eight-year period until 2032 really gives the chance for factory-developed technology to establish the market place and the required investment in the fuelling network,” said Mike Corcoran, acting MD of Volvo Trucks.

This ties in with the pressure the industry is facing to reduce its carbon profile voluntarily by 15% for 2025, as outlined in the government’s ‘Road to Zero’ issued in July 2018.

“Tied in with even tougher mandatory demands for 2025 and 2030 being discussed within the EU, LNG has a key role to play in achieving this,” commented Mike, adding “Both Volvo Trucks and our dealer network are now geared up to deliver and support the Volvo FH and FM LNG ranges which are now available, having made their press debut this time last year.”

An example of Volvo’s new LNG range of trucks was shown at Freight in the City on 6 November.