Market Drivers

The current global energy crisis has provided us with concrete proof that the world needs more energy. And, that the conversion to renewable energy cannot be made without a well thought out and executed transition plan.

This steady increase in demand for more energy, reliable energy, and affordable energy, is a strong market driver for CanaGas transport solutions which, consists of our large type-4 pressure vessels nested inside of shipping containers to transport natural gas, propane, LPG, ammonia, and a host of other gaseous fluids.  

The world is divided into three economic categories, developed, developing, and the third-world. The one thing each category has in common is that they need, more energy. Depending on where you live in the world, reliable and affordable energy is required to sustain prosperity, continue social and economic development, or survive! 

Developed nations have/had access to reliable and affordable energy for decades. Developing nations, however, struggle to maintain the production of reliable energy. Affordable energy for these nations is becoming more obscure every day. And then there are the third world nations. They cannot produce reliable energy, let alone affordable energy. As a result, economic development, and therefore social development, is barely on the horizon, if at all visible.    

Developed nations have been the driver for more environmentally friendly and sustainable governance (ESG). However, the energy crisis will likely tighten the reins on that progress. This is because these developed nations ’had’ reliable energy supplies and ‘had’ affordable energy. Now there is a global energy crisis. As a result, the demand for natural gas, propane and LPG is going sky-high. In the United States coal production to the end of 2022 is now sold out and, 2023 production is currently pre-selling. This is a big setback for the ESG movement. It confirms that the world’s demand for energy today, outweighs the ESG movement.   

Another problem facing developed nations and unions like the EU, is the transition of the electrical grid to renewable sources while maintaining phase. Unfortunately, new electrical supplies from wind and solar cannot easily match the existing grid phase. Thus, large circuit breakers at junction terminals trip causing blackouts downstream of those terminal. 

This fundamental problem of matching phase in existing electrical grids is increasing demand for natural gas driven generation facilities which, can easily adjust to match or create base load phase at the tie-in connection. The fact that such a generation facility can be up and running in 4 to 6 months at a reasonable and set cost, is another market driver for natural gas fuelled power generation, despite the ESG concerns. 

As CanaGas can deliver natural gas to a desired location without a pipeline, demand for such transport systems will remain high in developed (and developing) nations. In third-world nations, the ability to deliver natural gas, propane, and LPG through use of existing intermodal infrastructure is a life-line. Therefore, demand will remain very strong for decades to come.      

A particular bright spot in developed and developing nations is renewable natural gas (RNG) or bio-methane production. It is now the fastest-growing renewable energy source in developed nations. The CanaGas P-LNG transport solution is ideally suited for the low-cost liquefaction and transport of RNG, especially from remote locations like forestry operations or remote farms. The collection and use of RNG also stops the methane produced from decaying organic material from entering the atmosphere. Major, when one considers that methane, compared to CO2, is some 30 to 80 times more detrimental as a greenhouse gas. 

As noted above, the whole world is now demanding a lot more propane and LPG for transportation fuel, cooking, and heat. The CanaGas 15 Bar system will allow for the low-cost delivery of these valued commodities directly from gas plants to retail distributors. This ‘direct delivery’ will help keep costs lower than the current means which, requires multiple cargo transfers to reach end users. Thus, demand for such CanaGas transport solutions will rapidly grow for many years to come. 

Hydrogen is touted as a ‘green’ solution; however, the current cost of green (or blue) hydrogen, is several times greater than the current ‘crisis’ cost of natural gas. Thus, hydrogen is not yet sustainable. One ‘hydrogen’ bright spot is the cracking of ammonia to create hydrogen for fuel cells and/ or the direct burning of ammonia for power generation. Ammonia has no carbon in it. It does not create CO2 when burned. CanaGas can safely and cost-effectively store and transport 17 tonnes of ammonia in a 40-foot shipping container. Thus, demand for such a practical and low-cost solution is expected to increase every year for the next 20-plus years.