Investing Insight: Why CNG is the Next Scalable Step in Cleaner Heavy-duty
As global decarbonization ambitions collide with real-world economics, compressed natural gas (CNG) is quietly reasserting itself as a pragmatic, low-emission solution for heavy-duty trucking.
Amid rising diesel costs, tightening emissions rules and infrastructure and economic constraints that continue to slow electric and hydrogen adoption, fleets across North America are revisiting CNG as a proven, immediately deployable technology; and the companies enabling its performance and efficiency through innovation are emerging as key beneficiaries.
CNG-powered trucks have always been part of the alternative fuel landscape, but their economic and environmental profile is gaining new relevance. Diesel’s price volatility and evolving emissions regulations have made cost predictability a strategic advantage. According to the US Energy Information Administration, retail natural gas fuel prices have remained consistently 50 to 60 percent below diesel prices since 2015, and it’s forecast to continue through 2026.
Proven alternative
CNG’s stability is already translating into renewed fleet interest.
In its analysis on alternative fuels, the North American Council for Freight Efficiency notes that natural gas remains the most proven and scalable low-emission fuel for heavy-duty applications, offering a credible path to lower total cost of ownership while meeting sustainability goals. “These big rigs travel an average of 400 to 600 miles per day and require strong pulling power. CNG and LNG have proven to be the best alternatives to diesel for these trucks, meeting their required range and performance criteria while burning cleaner than diesel,” the council states.
Recent market analyses reinforce this trend: Data from Global Growth Insights show the global CNG heavy-duty truck market is projected to expand from US$7.1 billion in 2024 to nearly US$12 billion by 2033, a compound annual growth rate of 5.7 percent, driven largely by fleet conversions and new OEM integrations.
Innovation is key
CNG offers fleets an appealing blend of cost efficiency, regulatory compliance and operational familiarity. Unlike battery electric or hydrogen systems, CNG relies on existing fueling infrastructure and mature vehicle technology. According to the US Department of Energy’s Alternative Fuels Data Center, CNG engines cut greenhouse gas emissions by 15 to 25 percent compared to diesel, and can deliver additional air-quality benefits through lower nitrogen oxide and particulate output.
The latest CNG systems also deliver performance that was once reserved for diesel. The High Pressure Direct Injection (HPDI) system, which was developed by Westport Fuel Systems (NASDAQ:WRPT,TSX:WPRT) and now sits in Cespira, Westport’s joint venture with Volvo Group, enables trucks to achieve market-leading fuel efficiency, with full engine braking, 500…
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