To promote the use of cleaner energy in the nation, Dangote Cement Plc is set to introduce 1,500 Compressed Natural Gas (CNG) delivery trucks in Nigeria. The Group Managing Director of Dangote Cement, Arvind Pathak, made the announcement during a virtual conference call that was organised for Investors and analysts. He announced the company’s decision to acquire the CNG trucks, gradually retire its old diesel trucks, and transition to a fleet of CNG vehicles. Pathak initiated the transition from diesel trucks to CNG trucks within the company four years ago.
During that time, they utilised dual-fired engines capable of running on compressed natural gas and diesel. Currently, the company possesses about 1,400 trucks from that era. As indicated in its unaudited financial report, during the first half of 2024, the company introduced 300 CNG-powered trucks into its fleet. Also, two months ago, during the 15th Annual General Meeting (AGM) in Lagos, the company chairman, Aliko Dangote, announced plans to switch thousands of delivery vehicles to compressed natural gas by 2025 as part of the company’s long-term goals.
Promoting CNG vehicles will improve energy independence and efficiency.
The decision was made to further the Federal Government’s goal of decreasing reliance on fossil fuels, ultimately enhancing the country’s energy independence and ensuring a more stable energy future. During his address, he announced the implementation of compressed natural gas vehicles as a direct result of the new federal government policy, the Renewed Hope Agenda, led by President Bola Tinubu. Despite the significant financial Investment required, the company is committed to transitioning all vehicles to compressed natural gas by the end of next year.
They are determined to prioritise shareholder satisfaction and will persevere in meeting this challenge. In April, President Tinubu decided to require all government ministries, departments, and agencies to purchase vehicles powered by CNG. This directive aligns with his goal of promoting energy security, increasing efficiency, and reducing expensive fuel expenses. Pathak emphasised that Dangote’s decision to utilise CNG as a substitute fuel for its cement trucks was just one example of the company adapting to rising inflation.
Shifts to compressed natural gas aim to boost profits sustainably.
Also, they implemented fresh, inventive business strategies that significantly boosted profits while managing expenses and preserving profit margins. Key efforts included optimising the fuel mix and promoting the adoption of alternative fuels, offering cost-effective alternatives to fossil fuels. They gradually shifted from diesel-powered vehicles to fully compressed natural gas vehicles. This transition reduced fuel costs and minimised environmental impact, reflecting a commitment to sustainability. These combined efforts ensured a more efficient, profitable, and Eco-friendly operation, setting a new standard in their industry.
It has also solidified its position as a key player in Africa’s Construction industry, supplying high-quality cement for various projects. The company’s commitment to Innovation and Sustainability has set it apart, as it continuously seeks to improve its production processes and reduce its environmental impact. With operations in multiple countries, the company plays a crucial role in driving Economic Growth and development across the continent, supporting the construction of Infrastructure such as roads, bridges, and buildings. Aliko’s vision and leadership have propelled the company to great success, making it a trusted name in the industry.
Related Article: Infrastructure dev. may boost cement industry
Lastly, the company’s adoption of CNG vehicles represents a strategic move towards sustainability and efficiency. By opting for vehicles that run on compressed natural gas, the company is not only reducing harmful Emissions and promoting cleaner air quality but also demonstrating a commitment to environmental stewardship. The cost-effectiveness of CNG compared to diesel further underscores the economic benefits of this transition, leading to potential savings for the company while supporting the country’s efforts to diversify its energy sources and reduce its carbon footprint. This shift towards it aligns perfectly with the country’s focus on innovation and sustainability, positioning it as a leader in the industry.