4.5 Fuelling Infrastructure

The research team concluded that:
“Propane is the most readily fuel in Canada, and additional fleet-specific needs arise”

4.5.1 A well established network of pipelines, storage, distribution points, and approximately 2,500 retail locations, combined with the relative ease of installation of new refuelling infrastructure will enable propane to respond to customer demand in the transportation sector.
Most of the propane in Canada is produced in Western Canada. A system of pipelines delivers propane and other natural gas liquids to Sarnia, Ontario. An extensive network of rail and road transportation serves the Ontario and Eastern markets. There are over 300 distribution points in Canada that can be readily expanded.

Currently, approximately 2,200 to 2,500 retail sites across Canada dispense propane to vehicles.⁶⁷ These stations are primarily located in urban centres in Ontario, British Columbia and Alberta – the remnants of a network of over 5,000 stations that were in place until the early 1990’s. In addition there are private refuelling stations serving dedicated fleets with vehicles running on propane.

Propane refuelling locations are relatively easy to install and usually leverage existing gasoline refuelling sites. The space requirements are nominal and tanks are typically installed aboveground. There are no environmental issues associated with the installations and a well-developed set of codes and regulations exist to govern the storage and handling of the product. Capital expenditures for smaller self-contained dispensing stations for fleets start at about $25,000. A typical retail site consisting of a 15,000 litre tank and dispensing for about 100 or more vehicles per day costs approximately $75,000.

Table 6 below shows the number of fuelling stations, by fuel type, available to the public in Canada.

TABLE 6

Number of retail fuelling stations available to the public in Canada

4.5.2 Ethanol E10 availability at the retail level is growing rapidly, supported by ease of implementation and government regulation, but E85 refuelling infrastructure is virtually non-existent in Canada.
According to available Government data, there are about 1,000 retail outlets in Canada selling ethanol-blended gasoline.⁷¹ The Federal Government introduced regulations in its 2007 budget requiring 5% renewable content in total gasoline sales and 2% content in total diesel fuel sales by 2010. Ontario introduced a Renewable Fuels Standard effective January 1, 2007 requiring gasoline to contain an average of 5% ethanol. Effectively, this legislation will place E5 or E10 at virtually every location currently dispensing conventional gasoline within Ontario, and will accomplish the same in other provinces that begin to adopt ethanol-blend fuels.

E85 is currently not mandated. There are only three retail sites offering E85 ethanol-blends in Canada; one located in Ottawa and two located in South-Western Ontario. E85 dispensing facilities can be located at existing service stations, however additional dispensers and underground tanks would be required to store and dispense the product. The estimated cost of an installation would be approximately $60,000, depending upon the site and configuration. Natural Resources Canada states “significant changes will be needed in Canada's fuel distribution and dispensing infrastructure to accommodate highlevel ethanol-blends.”⁷²

4.5.3 The high cost of implementation has limited the development of natural gas refuelling infrastructure across Canada, with regional representation in Ontario, British Columbia, and Alberta totalling 100 sites nationally.
There are approximately 100 retail CNG refuelling sites across Canada. Ontario has approximately 35 sites, with the balance primarily located in mainland British Columbia and the Calgary to Edmonton corridor.

Retail natural gas-refuelling sites can often be integrated with existing gasoline stations, however the space requirement for the compressor station and storage systems often preclude installation at smaller or congested sites. Natural gas fuelling stations range in capital cost from $250,000 to $2,000,000 for infrastructure. Additional costs may be required to upgrade distribution pipelines for sufficient pressure and volumes to serve the station’s demand.