Methane fuel for vehicles is increasingly popular all over the world and is used for all kinds of vehicles, such as passenger cars, police cars, ambulances, delivery vans, waste collection trucks, buses and other larger transportation vehicles. Methane is also used as fuel for boats, ferries and ships and for machinery in various industries.
For transportation on land, methane is usually sold in gas form for passenger vehicles, but liquefied methane is increasingly popular for larger vehicles and machinery.
Icelandic methane is a biomethane fuel that can be produced from all aboveground organic matter, such as biological waste from households, agriculture, the seafood industry or other industries or by growing biomass on land, in the ocean and in lakes. Thanks to increased knowledge and improved technology in the production and distribution of methane, methane fuel is now viewed as an important part in creating more environmentally transportation systems for the 21st century. Increased energy security and sustainability are also important arguments for nations to increase their use of methane fuel.
The world market price of methane is considerably lower than that of petrol and diesel, leading to foreign currency savings for Iceland.
In a comprehensive report (from NAS, the National Academy of Sciences), published in 2009, the all-around environmental impact of fuels for motorised transportation were compared, with reference to foreseeable developments in vehicles and energy system up to the year 2030. Of all the options, vehicles powered by methane fuel received the highest grade, despite the fact that methane fuel is extracted from natural gas. It was also clear that vehicles powered by Icelandic biomethane are in a class of their own, compared to other motorised vehicles, with respect to all-around environmental impact. Furthermore, increased use of methane fuel for Iceland’s fleet of vehicles will ensure minimum emission of greenhouse gases in transportation, assuming that the fleet will be used for transportation in the same manner as heretofore. Today, most car manufacturers produce vehicles that can utilise methane fuel.