New Advances in Zero Emissions Vehicles Offer Promise for Work Fleets
By Maryline Daviaud Lewett, Director of Business Development, Transformative Technologies; and Randal Kaufman, Sales Director, Transformative Technologies
With start-up electric vehicle (EV) manufacturers and even old guard automakers announcing ambitious plans to develop zero-emissions medium- and heavy-duty vehicles, the transportation industry is on the brink of a major transformation. According to the North American Council for Freight Efficiency (NACFE), medium- and heavy-duty vehicles account for more than 20 percent of petroleum use in the U.S., even though they make up less than five percent of the overall fleet. Swapping these diesel-burning vehicles for electric or hydrogen fuel cell vehicles would be a major win for decarbonization, while helping to lower fleet operating & maintenance (O&M) costs.
This shift towards zero emissions comes as governments around the world are beginning to crack down on internal combustion engines in an attempt to quell pollution and emissions. More than nine countries and a dozen cities have announced that they will ban diesel vehicles. In the U.S., California issued a mandate that by 2040, no diesel trucks will be allowed to operate in the state. Athens, Copenhagen, Madrid, Mexico City and Paris have said they would remove diesel cars and vans from their roadways by 2025, while Norway, France and the United Kingdom have all announced phased plans to remove diesel vehicles entirely by mid-century.
There’s no doubt that these vehicles hold great potential to disrupt the transportation sector. But where does the commercial and industrial sector stand today? According to Black & Veatch’s 2019 Strategic Directions: Commercial & Industrial Report survey, which polled representatives across the commercial and industrial space, widespread adoption is still a distant dream.
Nearly half (46 percent) of the survey respondents indicated they do not have EVs in their fleet, nor do they plan to have them in the future. One in five respondents said they currently have an EV fleet, while 5 percent will lease EVs to fill their needs. Hydrogen fuel cell adoption is even lower – only 3 percent of respondents currently have a fuel cell fleet, although 11 percent said they are planning to lease one. Nearly three-quarters do not currently have one and have to plans for one.
What makes fleet managers so apprehensive? Survey data found price, lack of appropriate vehicle type, range and charging infrastructure to be the largest obstacles barring increased EV fleet adoption.
High upfront costs can be a deterrent, but they can be offset by incentives such as grants and tax breaks, which help make the total cost of ownership more competitive. According to survey data, 56 percent of respondents are benefiting from fleet rebates/incentives. By far, the most common incentive is the utility make-ready program (44 percent), followed by special time-of-use pricing (22 percent), offset cost of electricity (17 percent), offset purchase of DC commercial charging equipment (15 percent), offset purchase of an EV (12 percent) and offset purchase of L2 charging equipment (5 percent).
Because EVs have simpler operating systems, they require less maintenance than a diesel-burning fleet. Also, they weigh less, without the myriad fluids, mountings and systems required to run a combustion engine. Although still expensive to produce, costs are decreasing as battery technology improves and costs come down, making zero emissions vehicles even more attractive and – most importantly – viable.
In the U.S., $53 billion worth of goods are transported every day and freight deliveries are estimated to increase by 40 percent through 2045. For this reason, the industry cannot ignore the potential benefits of electric and hydrogen fuel cell vehicles. But with only a handful of OEMs in the space, and with many in the development and pilot phase, there are just not enough vehicles or EV options to fill demand – at least not for the next few years.
