Tasmanian natural gas distributor Tas Gas Networks has joined with Toyota Material Handling's Tasmanian dealer FRM Toyota to offer compressed natural gas (CNG) for forklift trucks.

The scheme will see Tasmanian businesses benefit from reduced energy costs, lower harmful emissions and increased safety in their material handling operations.

CNG technology reportedly offers significant cost savings compared with liquefied petroleum gas (LPG). It also provides a cleaner fuel, with lower emissions of particulate matter and oxides of nitrogen (NOx) than other fossil fuels, according to a statement released by Toyota Material Handling.

The safety advantage of CNG technolology is that it is reportedly lighter than air when compared with heavier-than-air LPG, where any leaked gas concentrates at floor level.

According to FRM Toyota sales executive David Oudman, a company with a large forklift fleet of more than 20 forklifts could save more than AUD$100,000 a year by switching to CNG technology.

Tas Gas launched the scheme by unveiling the first four CNG-powered vehicles in the state, including a Toyota 8FG25 forklift and two Toyota Aurion cars.

The scheme, launched by Tasmania's Minister for Sustainable Transport and Alternative Energy, Nick McKim, includes development of a fast-fill CNG facility.

Oudman said CNG supply from Tas Gas can be contracted on a stable long-term basis, thereby providing price certainty.

"Petrol, diesel and particularly LPG are subject to Northern Hemisphere demand and price requirements, as well as exchange rate variations," he said in the same statement.

"CNG may already be supplied to many sites through the natural gas distribution network, so vehicles can be filled from an on-site compressor unit connected directly to that supply.

"This alleviates the handling of LPG bottles, along with the OH&S issues and potential supply issues."

The use of CNG as a complete vehicle fuel is fast becoming an increasing popular choice among industry.

More than 12 million vehicles reportedly worldwide already operate on CNG, including more than 2500 buses in Australia's metropolitan area.

FEN reported in January this year that Toyota Material Handling Australia (TMHA) has gained more than 30 per cent market share in calendar year 2010, according to recent sales figures released by Australian Industrial Truck Association (AITA).

Official AITA industry sales figures, year-to-date December 2010, reveal TMHA has sold over 3,700 forklifts, retaining its position as Australia's number one forklift company.

The company scored the top sales spot in six states: New South Wales, Queensland, South Australia, Tasmania, Victoria and Western Australia.