A feasibility study of using Biomethane as an alternative fuel for taxis in the Reykjavík capital area

Abstract

Price of gasoline at the dispenser in Iceland has never been higher than today. This paper investigates the economic feasibility of using biomethane as an alternative fuel for the taxi fleet in the Reykjavík capital area. Cases of different groups of taxis were set up on the basis of existing data of the fleet and the financial feasibility evaluated. The cases were divided into separate groups based on the emission classes and various scenarios and sensitivity analysis applied. The research led to the conclusion that converting the average gasoline taxi to a biomethane fueled vehicle would have a positive return on invested capital and reduce the emission of new carbon dioxide. Carbon monoxide and hydrocarbon pollution from the fleet would be reduced; however, pollution from nitrogen oxide would be increased.