2025 Freight Trends Report
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The Future of Heavy-Duty Transportation: How CNG and RNG are Driving Sustainability and Cost Stability
December 10, 2024
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The transportation industry is undergoing a significant transformation as fleet operators increasingly turn to compressed natural gas (CNG) and renewable natural gas (RNG) to power their Class-8 trucks. These fuels are emerging as a sustainable and cost-effective alternative to diesel, providing stability in a volatile market and delivering critical environmental benefits.
Cost Stability in a Volatile Market
One of the most compelling advantages of CNG and RNG is their cost predictability. Unlike diesel, which is subject to the unpredictable swings of the global oil market, natural gas prices are shaped by domestic factors and supported by the U.S.’s robust production and pipeline infrastructure. This stability is particularly evident in 2024, where diesel costs have fluctuated significantly between 53.2¢ and 41.2¢ per mile, while natural gas prices have remained more predictable, ranging from 32.3¢ to 28.0¢ per mile (see graph below).
For fleet operators and shippers, this consistency is a game-changer, enabling better financial planning and insulating operations from diesel price spikes. As fuel costs are a major expense in transportation, the predictability of natural gas strengthens its appeal as a reliable energy source.
Environmental Advantages That Drive Change
Beyond cost, the environmental benefits of CNG and RNG are reshaping how companies approach sustainability.
CNG: Compared to diesel, CNG typically offers an emissions reduction of over 7%, making it a greener alternative.
RNG: The sustainability impact of RNG is even more profound, with lifecycle greenhouse gas (GHG) emissions reductions varying based on the feedstock:
- Landfill-derived RNG: Up to 83% reduction.
- Animal waste-derived RNG: Up to 133% reduction, effectively creating a carbon-negative solution.
- Wastewater-derived RNG: Up to 151% reduction.
These environmental gains align with growing corporate sustainability goals and evolving regulatory requirements. Additionally, financial incentives such as Renewable Identification Numbers (RINs) and the Alternative Fuel Excise Tax Credit (AFTC) make RNG even more economically attractive, encouraging fleets to transition to this cleaner energy source.
Technological and Infrastructure Advancements
The adoption of natural gas in heavy-duty trucking is further supported by technological and infrastructure advancements:
Engine Technology: The Cummins X15N engine offers a range of up to 1,200 miles per fill, matching the operational capabilities of diesel trucks.
Fueling Infrastructure: With over 630 fast-fill fueling stations across the U.S., fleets have access to a growing network that supports the scalability of natural gas adoption.
A Practical Path to Cleaner Transportation
The combined economic, environmental, and regulatory benefits of CNG and RNG position them as practical solutions for fleet operators. These fuels offer an effective way to reduce costs, achieve sustainability targets, and transition to cleaner energy without sacrificing operational efficiency.
As the transportation industry evolves, CNG and RNG are proving to be not just alternatives but leaders in the future of heavy-duty transportation. For fleets seeking to balance financial performance with environmental responsibility, natural gas offers a pathway to a sustainable and resilient future.
Navigate Energy Market Volatility with Breakthrough
The transportation industry has long prioritized cost management, but the focus on sustainability is now stronger than ever. Companies are now aiming to achieve meaningful environmental progress while ensuring that operational costs remain stable. Breakthrough supports this vision with CleanMile, our data-driven, end-to-end solution that makes sustainable goals attainable without compromising cost control.
Ready to align your operations with sustainability goals or gain a deeper understanding of how energy market dynamics affect your supply chain? Contact Breakthrough today, and let’s shape a resilient and sustainable transportation future together.
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