GE Capital, Canada and Gaz Métro Transport Solutions (GMTS), a subsidiary of Gaz Métro, signed a strategic agreement that will facilitate the trucking industry’s adoption of natural gas as a fuel in Eastern Canada.

Under the agreement, fleet operators will work with GMTS for natural gas supply and purchase and, separately, with GE Capital to secure loans or leases for natural gas vehicles. Vehicles that are eligible under this agreement use either compressed natural gas or liquefied natural gas.

“As someone with nearly a decade of experience in the transportation industry, I understand how critical it is for fleet operators to reduce their fuel costs. To remain competitive, they need to cut 3%-5% annually just to keep up with the market,” said Véronique Haché, strategic initiative leader for natural gas vehicles at GE Capital. “Transitioning to natural gas is a smart way to diversify their fuel portfolios and reduce those costs. Through this agreement, we’re giving trucking company leaders the financial motivation to make the shift from diesel to nat-gas.”

Fuel is one of the highest costs in the trucking industry, amounting to as much as 40% of a trucking company’s expenses. Natural gas can cost up to 30% less than diesel and emit up to 25% less greenhouse gas than diesel.