Gas Networks Ireland has agreed a deal with Virginia International Logistics to develop a Compressed Natural Gas station at its premises in Virginia in Co Cavan.
Gas Networks will install, maintain and operate the CNG equipment. Construction on the project will get underway next summer and it is expected to be operational by the end of 2020.
CNG is natural gas which has been compressed to fit into a natural gas vehicle's tank and is especially suitable for use in commercial vehicles.
Gas Networks Ireland said it is a proven alternative to diesel or petrol and reduces transport costs by up to 25% and carbon emissions by over a fifth.
It noted that while heavy good vehicles (HGV) and buses account for only 4% of vehicles on Irish roads, they account for 30% of all emissions in the road transport sector.
Virginia International Logistics has a fleet of 120 trucks including CNG vehicles and over 400 trailers.
It operates temperature controlled, dry freight, bulk liquid and containerised trailers for all sectors including food, electronics, pharma, manufacturing and ADR dangerous goods.
Eamon Cole, Director at Virginia International Logistics, said that as part of the company's "Green Logistics" policy, introducing CNG fuelled vehicles is one of the ways it can reduce its carbon footprint.
"The customer demand for alternate fuel transport is also increasing as companies focus even more on having a lower carbon supply chain," he added.