Scania and Lipigas seal agreement to promote sustainable transport in Chile

This is a machine translation of the original release, issued in Spanish

PRESS RELEASE from Scania and Lipigas
October 23, 2024

With the aim of transforming the future of transport in Chile, Scania and Lipigas, leaders in their respective industries, signed a strategic alliance to promote more efficient and sustainable mobility solutions. This agreement, focused on the implementation of alternative technologies to diesel, such as Liquefied Natural Gas (LNG) and Bio LNG, marks a milestone on the path towards reducing carbon emissions and promoting responsible transport.

This merger reinforces the sustainability goals of both companies. Scania, recognised for its innovative approach to sustainable mobility technologies, continues to advance its plan to reduce CO2 emissions from its operations by 50% and emissions from products used by its customers by 20% by 2025, in line with its science-based commitments. The company is focused on developing more efficient transport, not only to minimise environmental impact, but also to offer cost-effective solutions that are adaptable to the needs of transporters.

For its part, Lipigas has a strategic plan for 2030 in which one of its specific goals is for 100% of the internal operation of its storage and packaging plants to be carbon neutral. In addition, as a leader in the distribution of environmentally friendly and more sustainable energies, the company is promoting the incorporation of an LNG and Bio LNG offer in the residential, commercial and industrial sectors, with a special focus on the long-distance transport sector. The alliance with Scania will strengthen these solutions, providing innovative technologies that benefit both operational efficiency and the environment.

A concrete example of the work Lipigas has been doing is that it became the first company in Chile to develop an international corridor of LNG service stations for heavy-duty trucks. This fuel reduces the emissions of these machines compared to diesel operations, so this “green highway” implies cleaner energy for this type of transport. Additionally, the company is working to become the first company to produce and market Bio LNG in Chile during the first quarter of 2025. This carbon-neutral gas will be generated based on the reuse of agricultural waste in a plant that is being built in the Ñuble Region and will allow trucks to be transformed into carbon neutrality.

"This strategic alliance with Lipigas represents a crucial step in our commitment to lead the transition towards cleaner and more efficient transport. We are convinced that sustainable mobility is not only a pressing need, but also an opportunity to transform our industry and the cities in which we live," said Andrés Leonard, President of Commercial Operations for the Americas Region at Scania.

“Lipigas decided to modernize the gas industry to evolve towards carbon neutrality and offer various low-carbon solutions for different industries, including transportation. In this line, as a company we know that the energy future will be renewable, and that is why our focus is to contribute directly to this objective with our offer of renewable gases, such as Bio LNG, which is not a transitional energy, but definitive carbon neutral energy,” said Esteban Rodríguez, manager of the LNG, Biofuels and Green Hydrogen Business at Lipigas.

For his part, Ignacio Urcelay, General Manager of Scania Chile, highlighted that “this strategic alliance with Lipigas not only strengthens our commitment to sustainability, but also to the development of key solutions for the future of transport in Chile. We are firmly committed to reducing emissions and supporting our clients to do the same, which is crucial both for the environment and for our responsibility towards future generations.”