Alternative fuels (CNG, hydrogen) in the company fleet: what really pays?

Corporate fleets are under increasing pressure - to reduce emissions, meet ESG targets, save costs while remaining mobile and flexible. In addition to electromobility, alternative fuels, especially CNG (Compressed Natural Gas) and hydrogen, are coming to the fore. In this article, we look at where these technologies make real sense, what their limits are, and what can make sense for innovation-minded companies and the technology sector.

What are alternative fuels and why are companies even considering them

Alternative fuels are all fuels that replace the conventional combination of petrol and diesel. These include:

CNG (compressed natural gas)
LNG (liquefied natural gas)
LPG (liquefied petroleum gas)
biomethane (bioCNG)
hydrogen (H₂) - mainly in fuel cells
electricity (battery electric vehicles)

Companies are considering them for three main reasons:

Lower CO₂ and local emissions - important for ESG reporting, public tenders and social responsibility.
TCO (Total Cost of Ownership) optimization - when set up correctly, they can deliver savings on fuel and taxes.
Image and innovation - technology companies want to show that they are leading by example in sustainability and innovation.

The state of alternative fuels in Europe and Slovakia (data and trends)

Alternative fuels in the EU

According to European statistics, alternative fuels (EVs, plug-in hybrids, CNG, LPG, hydrogen) already have a significant but still minority share of the EU vehicle fleet.
The CNG market in Europe is stable, with a market value in the tens of billions of euros, and is expected to grow moderately in the period up to 2030.
Hydrogen vehicles (FCEVs) are so far clearly in the position of "early adopters" - the fleet across Europe is counted in thousands of units, not hundreds of thousands.

Slovakia: where are we today

According to the European Alternative Fuels Observatory, alternative fuel vehicles will account for around 2-3% of passenger cars and light commercial vehicles in Slovakia in 2024.
EVs, plug-in hybrids and LPG predominate, with CNG having only a limited but stable share, especially in cities and in selected corporate fleets.
Hydrogen cars are practically not yet found in the regular corporate fleet in Slovakia - these are rather pilot projects or test vehicles.

Regulation: AFIR and pressure on infrastructure

The European Union has adopted the Alternative Fuels Infrastructure Regulation (AFIR), which sets binding targets for building infrastructure for alternative fuels - chargers, hydrogen stations, CNG/LNG filling stations. This means:

the availability of fast charging stations and, gradually, hydrogen stations will increase in the coming years,
Member States are obliged to plan and report specifically on the development of the network.

For corporate fleets, it is important to track where infrastructure is actually being built, not just what is on paper - especially if they are planning CNG or hydrogen vehicles for long-distance or regional routes.

CNG in the corporate fleet: a practical choice or a dead end?

How CNG works and which companies it is suitable for

CNG (Compressed Natural Gas) is compressed natural gas stored in high-pressure tanks. The vehicle has an internal combustion engine adapted for gas and often a combination with petrol.

CNG is particularly worthwhile for companies that:

drive relatively stable, repeatable routes (urban logistics, couriers, deliveries),
have access to a CNG filling station - ideally within the city or their own company filling station,
want to reduce CO₂ and NOx emissions, but do not yet want to switch to full electric propulsion,
need lower operating fuel costs with an economical driving style.

The benefits of CNG for the fleet

Lower CO₂ emissions compared to petrol and diesel, even more pronounced when using bioCNG (biomethane).
Lower fuel cost per kilometre - with a stable CNG price, a company can make real savings on fuel.
Technologically familiar solution - internal combustion engine, easier integration into existing maintenance.
Possibility to combine with petrol, reducing the risk of being "trapped" without fuel in regions without CNG stations.

Disadvantages and risks of CNG

Limited infrastructure of CNG stations - outside larger cities and motorways, CNG refuelling is more complicated.
Higher purchase price of the vehicle compared to a pure petrol/diesel model.
Lower boot space (tanks) on some models.
Uncertainty of long-term direction of manufacturers - not all brands will support CNG versions in the next model cycle.

Where CNG makes the most sense in practice today

Urban and regional deliveries (grocery, delivery services, service teams),
Company vans with 100-250 km daily mileage, returning to the company or to the filling station,
municipal services - garbage collection, city maintenance, technical services (if they have access to infrastructure).

If a company is considering CNG, it very often makes sense to combine CNG vehicles on lease - for example, through long-term rental or operating leases - and test them in one or two locations before eventually expanding the solution to the entire fleet.

Hydrogen cars in the fleet: a vision of the future or a real possibility?

How a hydrogen vehicle (FCEV) works

Most hydrogen cars and light commercial vehicles are FCEVs - Fuel Cell Electric Vehicles. This means:

the vehicle has an electric motor,
the electricity is not generated from a plug socket, but in a hydrogen fuel cell,
the only "exhaust" product is water (H₂O).

From a hydrogen driver's point of view, a hydrogen car appears as a combination of the advantages of a combustion car (fast refuelling) and an electric car (quiet running, zero local emissions).

The benefits of hydrogen for corporate fleets

Fast refuelling - on the order of minutes, similar to diesel.
Longer range - typically 500-700 km per fill-up.
Zero local emissions - suitable for cities with strict emission rules.
Interesting innovative brand image - you can communicate the hydrogen car in PR, employer branding and to investors.

Why hydrogen is still more pilot than mainstream

Despite the technical advantages, hydrogen cars are now the exception rather than the rule for the mainstream corporate fleet:

Hydrogen station infrastructure is still in its infancy in the EU and in many countries (including Slovakia) it is virtually non-existent.
The price of vehicles and technology is high - hydrogen models are among the most expensive on offer from manufacturers.
A number of major manufacturers have suspended or scaled back their hydrogen car and van programmes in 2025 and are focusing more on battery electric vehicles.
Hydrogen makes the most sense in heavy-duty trucking, buses and industrial applications where battery solutions run up against weight and range limits.

For most Slovak and Central European companies today, hydrogen does not make economic or operational sense as a mass solution. However, it may be interesting in the form of a pilot project - for example, 1-2 vehicles in cooperation with an energy or technology company that is building a hydrogen infrastructure.

CNG vs. hydrogen vs. conventional solutions: a comparison in terms of TCO

For a corporate fleet, the key is to compare not just the purchase price of the vehicle, but the TCO - Total Cost of Ownership:

Purchase Price or Monthly Lease Cost,
fuel/energy,
service and maintenance,
insurance,
taxes and fees,
residual value/residual.

CNG vs. diesel

Fuel: CNG can have a lower cost per 100 km than diesel under the right conditions.
Service: slightly higher complexity (gas system, pressure vessels) but basically known technology.
Residual value: depends on demand - where CNG infrastructure is stagnant it may be weaker.

Hydrogen vs. electric car

Fuel/energy: hydrogen is generally more expensive per 100 km than electricity from a charger today.
Infrastructure: fast refuelling vs. dense network of chargers - in practice, battery electromobility has the upper hand today.
Technological risk: hydrogen is promising, but still at an experimental stage in cars and light commercial vehicles.

When does it make sense to lease instead of buy

For alternative fuels, operating leases or long-term rentals are particularly advantageous:

the company doesn't bear residual value risk - a big unknown with CNG and hydrogen,
it can set a shorter renewal cycle (e.g. 3-4 years) and flexibly switch to a new technology,
the lease includes servicing, insurance, tyres and other services, which simplifies cost planning.

For innovative companies and the technology sector, this is an ideal way to 'try out' alternative fuels without buying vehicles with uncertain balances.

How to proceed if you want to introduce alternative fuels into your fleet

1. Do a fleet and route audit

Which vehicles drive urban circuits and which highways?
What are the daily mileages (average, maximum)?
Where do the vehicles return to - is it realistic to have your own CNG filling station or at least some station nearby?

2. Select suitable segments to pilot

Don't rebuild the entire fleet first. Select:

5-10% of vehicles suitable for CNG (urban and regional delivery),
possibly 1-2 hydrogen vehicles in partnership with an energy company or as part of a grant project.

3. Select form of financing - purchase vs. long term lease

For alternative fuels, it makes sense to prefer more flexible forms of financing:

Long-term lease for 2-4 years,
operating lease with guaranteed service and a clearly defined cost per month.

Payless has provided long-term rental and operating leases for both passenger and commercial vehicles within the Group, with an emphasis on low emissions, newer fleets and service included in the rental fee. In practice, this means that the company pays a monthly instalment and fuel remains the only variable cost - be it conventional fuel, CNG or electricity.

4. Set reporting and ESG indicators

Make the introduction of alternative fuels meaningful to management and investors:

Track emissions per kilometre and compare CNG/EV vs. diesel,
track cost per km (fuel + service),
communicate results in ESG reports, marketing and employer branding - especially if you are a tech or green company.

Practical scenarios for innovative companies and the technology sector

Scenario 1: Technology firm in Bratislava with an urban fleet

20-30 cars for salespeople and technicians,
daily mileage of 80-150 km, mainly within the city and surrounding areas,
CNG station available within a reasonable distance.

Possible progression:

Pilot replacement of 4-6 vehicles with CNG models on long-term lease,
Evaluate costs and driver satisfaction over 12-24 months,
Combine CNG with EVs where charging availability is easy.

Scenario 2: E-commerce or logistics startup

Fleet of vans, high number of stops per day,
pressure for low emissions due to demands of large clients.

Possible course of action:

Test CNG vans in cities where there is infrastructure,
combination with electric vans for short urban routes,
Financing by operating lease - minimising residual value risk.

Scenario 3: Innovative company with the ambition to pilot a hydrogen project

Strong focus on PR, innovation and energy transformation,
Opportunity to enter into a partnership with an energy company.

Possible course of action:

Procurement of 1-2 hydrogen vehicles as part of the pilot,
Embedding the project in ESG, CSR and marketing communication,
use of a combination of subsidies, grants and long-term lease.

Frequently asked questions (FAQ)

1. Is it worth it for a company to invest in CNG vehicles today?

Yes, but not across the board. CNG makes sense where you have stable access to a fueling station, high annual mileage, and urban or regional routes. It's always a good idea to start with a pilot and ideally in the form of a lease, not an outright purchase.

2. Does hydrogen have a real use in personal company cars?

So far, rather exceptionally. The technology is ready, but the infrastructure and cost of the vehicles make it more suitable for pilot projects or specific segments. Electric vehicles, plug-in hybrids and CNG are more practical for the general fleet today.

3. If I want a greener fleet, should I go EV or CNG?

There is no universal answer. For urban and short routes, a combination of EVs and plug-in hybrids is ideal. CNG can complement the portfolio where the infrastructure exists and where you need more range without relying on chargers.

4. How quickly will alternative fuels show up in ESG reports?

With more vehicles and higher mileage, you can see the effect as early as 1-2 years - especially in CO₂ emissions per kilometre and publicly communicated sustainability targets.

5. Is operating lease or purchase better for alternative fuels?

In most cases, operating lease or long-term rental is preferable. Both technology and regulations are changing rapidly, and leasing allows you to renew your fleet more quickly without the risk of an unsaleable vehicle.

TL;DR - key findings

CNG is now a practical solution, especially for city and regional fleets with access to infrastructure.
Hydrogen is a technologically interesting but commercially still narrow segment, more suitable for pilot projects.
For alternative fuels, operating leases and long-term rentals make the most sense, not outright purchase.
Decisions should be based on analysis of routes, mileage and infrastructure availability, not just marketing slogans.
Innovative companies and the technology sector can significantly reduce emissions while remaining cost-effective by combining CNG, electric mobility and flexible leasing.

Keywords and entities used

Main keywords:

Alternative fuels
CNG
hydrogen / hydrogen cars
company fleet
green energy

Related entities and terms:

AFIR (Alternative Fuels Infrastructure Regulation)
TCO (Total Cost of Ownership)
FCEV (Fuel Cell Electric Vehicle)
Biomethane / BioCNG
ESG, sustainability, green mobility
Long-term lease, operating lease
Payless