The NGV industry in Australia is developing and has as its objective heavy vehicle fuel replacement. Security of fuel supply and national economic benefits have caused the Government to encourage the use of alternative fuels, such as NGV. Significant progress has been achieved in the development of vehicle conversion technology, refuelling stations and marketing plans. Demonstration activities of 3 different vehicles types have proved the economic viability for the fleet operator. The progress toward fleet usage of NGV is encouraging and a summary of market penetration in various sectors is provided.