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I usually point biomethane as a possibility to increase the availability of gaseous fuels in the countryside, since it's renewable, can increase the income of farmers and has a lesser impact in the availability of arable land for food and industrial feedstocks compared to ethanol. Then, not just for urban transit, it could also become a viable option for longer intercity routes.
Actually, in some intercity routes in my state, a CNG-powered bus would already make sense, and eventually a hybrid driveline would be interesting to reduce the fuel usage while stopping in certain locations where CNG is still not so easily available.
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