VIP Call Girl Gorakhpur Aashi 8250192130 Independent Escort Service Gorakhpur
7 low emission energy sources sfc
1. Session 7. Low Emission
Energy Sources
Sustainable Logistics
Roadmap Training
26 October 2021
2. Session 7. Low Emission Energy Sources
Certification Manager Transport
Energy Saving Trust
Colin Smith
Sales and Marketing Director
Tevva Motors Limited
David Thackray
Sustainable Logistics Roadmap | S7 Low Emission Energy Sources
2
3. Sustainable Logistics Roadmap | S7 Low Emission Energy Sources
Only use training materials within your company
Terms and Conditions and Antitrust – Training
The following terms and
conditions apply to registration
for and participation in the Online
Training and/or E-Training (the
‘Training’) between Stichting
Smart Freight Centre (SFC) and
the Participant. By completing the
registration process for
participating in the Training you
confirm receipt of the terms and
conditions and applicability of
these terms and conditions.
Confidential information: any
correspondence, documents, data
carried, information or materials
(including, without limitation, any
methodology and tools which may be
disclosed or demonstrated during the
Training) relating to the business,
activities or trade secrets of the other.
Documentation: the written and / or
electronic documentation associated
and provided with the Training.
Intellectual Property Rights
SFC has the sole entitlement to all
Intellectual Property Rights in and
related to the Training and all
Documentation developed for or made
available to the Participant during the
Training.
Participant shall refrain from using or
copying and distributing Documentation
he/she has received during the
Training.
Should Participant share
Documentation outside the group of
Participants to the Training access will
be blocked immediately.
Confidentiality
SFC and the Participant must exercise
confidentiality in respect of all
Confidential Information used for the
Training and / or which is expressly
designated by them as confidential.
The confidentiality obligation does not
apply to information that:
is (or has become) part of the public
domain;
has been lawfully obtained from a third
party who is not bound by a similar
obligation of confidentiality;
has been independently obtained,
regardless of transfer of information
from the other party;
has been released with permission of
the other party.
The Confidential Information may not
be copied, recorded or reproduced
without the SFC’s prior written
consent.
All Participants should note
that NOTHING Smart Freight
Centre does shall have as its
object or effect the
PREVENTION, RESTRICTION
or DISTORTION of
COMPETITION. During the
training sessions the
following rules apply to ALL
participants:
YOU CAN discuss in general
terms trends in prices, terms and
conditions, trade and market
conditions (In relation to freight
transport, logistics and supply
chain services).
AVOID mentioning or sharing
information which relates or
reveals directly to actual prices,
terms and conditions,
commercial information and data
that may be advantageous to a
competitor, or (unless expressly
approved by the respective
Legal and/or Compliance
departments) discussing the
cross-licensing of any
technology.
DO NOT discuss business
proposals with anyone without
first consulting legal counsel.
Arrange a separate meeting with
the person you want to discuss a
business proposal with.
DO NOT make any agreement
or suggest to others that they
should boycott any individual
service or service provider.
DO NOT discuss market
strategies, target customers,
product development, prices and
margins, costs of production and
supply
AVOID getting into debates with
or making disparaging
comments about our
competitors, as they can easily
lead to a claim for unfair trade
practices.
3
Don’t share commercially sensitive information
4. Recap of
previous
session
SLR S6. Fleets and Asset Efficiency and Utilization
4
Calculate and Report
Setting Targets
Procurement
Solutions:
Manage Demand
Switch mode
Utilize Fleets and Assets
Efficiency of the Fleets
and Assets
Switch energy carrier
5. Sustainable Logistics Roadmap | S7 Low Emission Energy Sources
Session 7: Low Emission Energy Sources
Objective: Determine what are
the available options for low
emission fuels and energy
sources and how to select them
for own and outsourced
operations
Content:
Solutions for low emission fuels and
energy sources
Company case: Tevva eTrucks
Decision Making for shippers on low
emission energy sources
5
1. Getting Started
2. Calculate and report:
GLEC Framework
3. Vision, Goals and
Targets
4. Procurement
5. Solutions: Transport
Modes and Demand
6. Solutions: Fleet and
Assets Utilization and
Efficiency
7. Solutions: Low
Emission Energy
Sourcess
8. Carbon Offsetting and
Insetting and Finance
9. Resources and
Collaboration
10. Welcome day
6. Solutions for decarbonizing freight and logistics
Sustainable Logistics Roadmap | S7 Low Emission Energy Sources
6
Focus of today
7. Our Low Emissions and
Fuels Program
In partnership with
Sustainable Road Freight Conference | Smart Freight Centre
7
Solutions
Report
and
calculate
Decide
Implement
and
collaborate
10. What makes an energy source “low” or “zero” emission
Sustainable Logistics Roadmap | S7 Low Emission Energy Sources
10
Source: GLEC Framework 2.0 (2019)
15. Sustainable Logistics Roadmap | S4 Low Emission Energy Sources
What is it?
Natural gas - LNG and CNG
Natural gas cooled to -162°C
(-260°F), changing it into a liquid that
is 1/600th of its original volume
LNG ships/trucks require modified
engines and dedicated fuel tanks
Otto cycle engine (spark/positive
ignition): cheaper but higher methane
leaks
Diesel cycle engine (compression
ignition)
Natural gas compressed to <1/100th
of its original volume
CNG trucks require modified engines
and dedicated fuel tanks
Compression-ignition dual fuel
technologies: comes with methane
leaks
Spark-ignition engine technology + 3-
way catalyst: deals with methane
leaks, but lower efficiency
15
Compressed natural gas (CNG)
Liquefied natural gas (LNG)
Source: Chevron
16. Natural gas – LNG and CNG
Sustainable Logistics Roadmap | S4 Low Emission Energy Sources
It’s already happening
16
Source: Volkswagen, Volvo, TNM/Albert Heijn, News Atlas, Transportation News
Courtesy of Ewals CargoCare
17. Sustainable Logistics Roadmap | S4 Low Emission Energy Sources
Well-to-wheel GHGs
Natural gas – LNG and CNG
Extraction and
processing
Transportation
Storage and
dispensing at
refueling station
0
50
100
150
Diesel (Fossil
Diesel)
LNG (EU mix) CNG (EU piped mix)
Fossil Fuels
Variation in
Emissions
Source: JEC v5, gCO2e/MJ
Well to Tank
Tank to Wheel
Land use (from RED2)
17
CO2
CH4
~20% reduction
18. Sustainable Logistics Roadmap | S4 Low Emission Energy Sources
Pros and cons
Natural gas - LNG and CNG
Lower costs
High supply availability
Potential reduction in local pollution
Established fuel in ships
Current IMO regulatory framework GHG
calcs favor LNG: only tank-to-wheel and
methane slip is not considered
Insufficient reduction in GHG
emissions
Still a fossil fuel
WTW GHG reductions 0-20% compared
to petroleum diesel
Methane slip (CH4) high emission
potent GHG
Requires dedicated engines & tanks
(but costs offset by lower fuel costs)
New fuel distribution infrastructure
needed
18
Pros Cons
19. Sustainable Logistics Roadmap | S4 Low Emission Energy Sources
What is it?
Biofuels
Biodiesel:
Form of diesel fuel derived from
plants or animals
1st generation: food and/or feed crops
2nd generation: non-food-based crops or
waste oil feedstocks
3rd generation: algae (in development)
Biomethane:
biogas (CNG or LNG) produced by
microbiological process from different kinds
of biomass
Wastewater, water treatment sludge, manure
from animal production, industrial or
municipal waste streams, energy crops
Biopropane:
renewable liquid petroleum gas (LPG) and
by-product from HVO production >> drop-in
replacement fuel
Bioethanol:
ethanol produced from biogenic feedstocks
(e.g. sugar cane, starch) >> blended with
conventional gasoline, e.g. E10 (10%
ethanol)
19
HVO - Hydrotreated
Vegetable Oil: chemically
same as diesel >> “drop-in”
fuel
FAME - Fatty Acid Methyl
Ester biodiesel:
“conventional” biofuel by
transesterification of
vegetable oil or animal
fats
20. Biofuels
It’s already happening
Sustainable Logistics Roadmap | S4 Low Emission Energy Sources
20
Source: gcaptain, GoodFuels; Gaz Mobilité Suise and Carrefour; Airline Ratings
21. Sustainable Logistics Roadmap | S4 Low Emission Energy Sources
Well-to-wheel GHGs
Biofuels
Source of the
biofuel
Distance
biofuels
source to use
Efficiency
biofuels plant
0 20 40 60 80 100 120
rapeseed
sunflower seed
soybeans
palm oil
waste cooking oil
tallow oil
palm oil effluent
Variation in HVO Emission Factors
Source: JEC v5; gCO2e/MJ; WTW incl iLUC
Production at Source Transformation at source
Transport to market Transformation near market
Conditioning and distribution iLUC (from RED2)
21
Diesel
comparator
88% reduction
22. Sustainable Logistics Roadmap | S4 Low Emission Energy Sources
Pros and Cons
Biofuels
Pros
Effective energy diversification and
GHG reductions
Drop-in fuel:
Existing infrastructure and vehicles
Blends can help overcome cost
challenges
Relevant option to meet IMO 2020
requirements for fuel Sulphur content
Accelerated uptake and development
Cons
Crop-based biofuels are not reducing
WTW emissions
Costs are higher
No air pollution advantages (PM, NOx)
Large scale adoption limited
Limited supply
Competition with other end-uses
Prioritize application where other solutions
are lacking, e.g. aviation, long-distance
trucking
Other sustainability issues:
Land-use change,
Competition with food crops
22
23. Quick Poll:
For what mode do you see a role
for biofuels in 2030?
Air
Road
Rail
Maritime
Inland waterways
(multiple options)
23 Sustainable Logistics Roadmap | S4 Low Emission Energy Sources
24. Electric vehicles and vessels
What is it?
Hybrid electric vehicles:
• Internal combustion engine (ICE) +
• An electric motor (battery charged by ICE
and/or regenerative braking)
Plug-in hybrid electric vehicles
(PHEV):
• Electric motor (battery charged by wall outlet,
charging station, ICE, regenerative braking)
and
• An ICE used only when battery is depleted
Battery electric vehicles (or vessels)
(BEV):
• Full electric vehicles with rechargeable
batteries and no ICE
Electric Road System (ERS):
• Battery electric vehicle can draw power from
wired network e.g. catenary lines
Sustainable Logistics Roadmap | S4 Low Emission Energy Sources
24
27. Sustainable Logistics Roadmap | S4 Low Emission Energy Sources
It’s starting to happen
Electric vehicles and vessels…and planes!
27
Sources: Calstart Zero-Emission Technology Inventory, IEA, Scania, Clean Technica, Greenbiz, Siemens, Electrive, Heineken
28. Sustainable Logistics Roadmap | S4 Low Emission Energy Sources
Well-to-wheel GHGs
Electric vehicles and vessels
Fossil fuels
Renewable
energy
Nuclear 0
50
100
150
EU mix, 2016 EU mix, 2030 Farmed wood
IGCC
Municipal
waste; CCGT
Wind / solar /
hydro
Variation in Emissions
Source: JEC v5, gCO2e/MJ Well to Tank
Tank to Wheel
Land use (from RED2)
28
Diesel comparator
29. Sustainable Logistics Roadmap | S4 Low Emission Energy Sources
Pros and cons
Electric vehicles and vessels
Pros
Competitive TCO for road
Reduction in GHG emissions
Improving with green power supply
Well suited to urban hub-and-spoke
Easily integrated in logistics fleets
with back to base operations
Full control over investment
decisions
Vehicles, chargers, power supply all in one
Cons
Higher capital investment costs
Constraint for carriers
Requires investments in vehicles and
charging infrastructure
Vehicle supply volume
Challenges for Heavy Duty long-
distance trucks
Need to adjust energy grid connections
In particular for large fleet
Uncertainties:
Rapidly development technology
Policy, residual value of asset,
Battery life-cycle impacts
29
30. Sustainable Logistics Roadmap | S4 Low Emission Energy Sources
What is it?
Hydrogen
Hydrogen is an “energy carrier”
Grey: Steam methane reformation (SMR),
without carbon capture and storage (CCS)
Blue: SMR with CCS
Green: Electrolysis of water using renewable
electricity
Different forms:
Gaseous: H2
Synthetic (e.g. methanol, ammonia)
Applications
Fuel cell electric vehicles (FCEV)
Still have batteries
Conventional ICE vehicles
30
32. Sustainable Logistics Roadmap | S4 Low Emission Energy Sources
Well-to-wheel GHGs
Hydrogen
Losses during
production,
transport,
distribution and use
Source of the
methane in SMR
Effectiveness of
carbon capture and
storage (CCS)
Means of electricity
generation
0
50
100
150
eHydrogen (Natural
Gas)
EU 2016 Electricity
Mix
EU 2030 Electricity
Mix
Wind Electricity eHydrogen (Farmed
Wood)
eHydrogen
Variation in Emissions
Source: JEC v5, gCO2e/MJ
Well to Tank Tank to Wheel
Land use (from RED2)
32
Diesel comparator
33. Sustainable Logistics Roadmap | S4 Low Emission Energy Sources
Pros and cons
Hydrogen
Pros
Flexibility
Hydrogen can be produced from fossil and
renewable energy sources
Longer distance & heavy duty application
Geopolitical: Future for fossil fuels
if combined with CCS (“blue hydrogen”)
If produced with renewable energy sources
(“green hydrogen”)
No tailpipe GHGs and air pollution
Cons
Vast majority (95%) of hydrogen is
‘grey’
High energy losses ~70%
Costs are high and uses still low
Requires investments in vehicles and
infrastructure
Lack of supply of vehicles and
infrastructure:
Still in development phase
Ammonia production using hydrogen
is energy intensive
33
34. Sustainable Logistics Roadmap | S4 Low Emission Energy Sources
Others: e-fuels or synfuels
Gaseous or liquid fuels
generated from additional
renewable electricity for use in
internal combustion engines
Other names:
Electrofuels or Synthetic fuels
Advanced liquid fuels
Power-to-X (X = gas or liquid)
Questions about cost and energy
effectiveness
Very little publicly available that is
comparable across fuel providers
Emerging solution for aviation
34
35. Sustainable Logistics Roadmap | S4 Low Emission Energy Sources
Others: e-fuels or synfuels
35
Maersk Secures Green e-Methanol for First Vessel
Operating on Carbon Neutral Fuel
More than half of Maersk’s 200 largest customers have set—or are in the
process of setting—carbon targets for their supply chains. As part of Maersk’s
ongoing collaboration with customers, corporate sustainability leaders
including Amazon, Disney, H&M Group, HP Inc., Levi Strauss & Co.,
Microsoft, Novo Nordisk, The Procter and Gamble Company, PUMA,
Schneider Electric, Signify, Syngenta and Unilever have committed to use and
scale zero carbon solutions for their ocean transport, with many more
expected to follow.
36. Efficiency of
energy used
Sustainable Logistics Roadmap | S4 Low Emission Energy Sources
36
Hydrogen
requires 2-3x
the energy
consumed
eFuels require
3-4x the energy
consumed
Sources: Transport & Environment
38. Q&A
Sustainable Logistics Roadmap | S4 Low Emission Energy Sources
Would you go
for hydrogen
or electric in
2030 for your
road freight?
Hydrogen
Electric
38
?
42. 26/10/2021 42
TEVVA’S TECHNOLOGY ON THE ROAD TODAY
State of the art e-machines.
High energy efficiency, reliability, safety.
No rare earth metals mean e-motor is more
sustainable and lower cost than alternatives.
E-machines are 100% recyclable at end of life.
Regenerative braking produces up to 30% of
battery electric charge each day.
02
Typical 180 mile all electric, zero emission
range.
Rapid charge capability enables
redeployment in 1 hour.
High voltage electrical energy storage and
distribution management system.
BATTERY/BATTERY
MANAGEMENT SYSTEM (‘BMS’)
03
Range Extender (generator) removes range
anxiety.
ReX operates at constant charging output more
than doubling the vehicle’s daily energy capacity
and range.
PREMS1 ensures that ReX operates for the
absolute minimum period daily to maximise use
of the cheapest energy and minimise TOC.
RANGE EXTENDER (‘ReX’)
04
PREMS: Patented cloud-based software
that optimises use of ReX.
VCU: gateway with vehicle communication
network enabling autonomous control
telematics system for fleet management and
diagnostic analysis.
EMBEDDED CONTROL
SYSTEMS
1. PREMS – Predictive Range Extender Management System (patent granted software)
01
E-MOTOR/GENERATOR
43. 26/10/2021 43
UPS BIRMINGHAM LAUNCH SUMMER 2019
Page 43
10 Vehicles in Birmingham
5 Vehicles in Southampton
Since mid - 2019
>260,000km accumulated to date
c. 120 tonnes CO2 eliminated
44. 26/10/2021 44
UPS – LUKE WAKE VP OF FLEET MAINTENANCE & ENGINEERING - DELIVERY
EQUIPMENT
45. 26/10/2021 45
HOW MUCH BATTERY IS NEEDED TO BE CERTAIN OF 160 KM RANGE?
Battery Size needed to give a 7.5t GVW truck a 160 km range
Influences on actual range achieved
Fleet manager’s view
of min. ‘safe’ battery
capacity
kWh
Needed
Consumption
in
kWh
55
63
95
120 110 87 67
wind, surface water, temperature
Driver behaviour, load, highway vs. urban,
133
Fleet manager’s ‘safe’ battery size is 150% of what will be
needed on most days and DOUBLE what will be needed
on a good summer day
0.83
kWh/km
Add 25% battery
capacity for 12t GVW
requirement
46. 26/10/2021 46
H2 REX – SPLIT AND UTILISATION OF ENERGY MIX
(7.5T VEHICLE ASSUMED)
80kWh grid-charged electricity
€0.14 /kWh (€11.20)
11kg / kWh (880kg)
65-130 miles range
120kWh stored as 7.5kg of Hydrogen
€0.28 /kWh (€33.50)
3kg / kWh (c.360kg including fuel cell and tanks)
98-195 miles additional range
‘Base load energy - typically, fully
consumed, every day
Back-up energy daily consumption can be from
zero to 100%
PREMS keeps this to the minimum to optimise
daily operating cost
€23,000
Capex
€35,000
Capex
47. 26/10/2021 47
ECONOMICS – CALCULATING TCO FOR YOUR OPERATION
TCO will be driven by for primary factors
Vehicle capex
‘Fuel’ Costs
Maintenance costs
Utilisation level
Residual value
Based on an anticipated €120,000 net capex and a 7-year lease (1+83 rentals):
Monthly rentals will be ‘in the order of’ €1850 (ambient) €2250 (temperature-controlled)
= APPROXIMATELY €500 higher than a diesel
For an 12T truck, in 2021, this means:
Capex – c. €140,000 (before any grants applied)
Diesel: c. €1.14/litre / Electricity: c. €0.14/kWh
Maintenance - “significantly lower”
Residual value - unclear
Complexity of the above can be largely eliminated by moving to an operating lease
(contract hire) financial model as maintenance costs and RV are fixed at the outset
48. 26/10/2021 48
ECONOMICS – CALCULATING TCO FOR YOUR OPERATION (ii)
Page 48
The UPS ‘base vehicle’ consumed 21 litres/ 100km – equating to c. €0.24/km (based on €1.14/litre)
EV cost per km is between €0.09 and €0.04 – depending (primarily) on driver behaviour and temperature
Saving per km is therefore between €0.20 and €0.15
To offset a €500 per month increase in monthly rental
3350km per month @ €0.15 per km
2500km per month @ €0.20 per km
To simplify: somewhere between €620 and €850 per month of diesel spend implies an
opportunity to save cost by switching to electric
Alternatively – just focusing on diesel spend (because diesel doesn’t only fuel ‘mileage’)
3350 km typically equates to approx. 750 litres or €840 monthly spend
2500 km typically equates to approx. 550 litres or €630 monthly spend
50. 26/10/2021 50
DEFINING SUSTAINABILITY:
REAL CARBON FOOTPRINT – UK EXAMPLE
Page 50
Inevitably depends on the CO2 per kWh of
electricity generated in any country
Grid electricity = 282g CO2 / kWh
(inc. WTT contribution of 27g / kWh)
Diesel = 3,170g CO2 / kWh
(inc. WTT contribution of 630g / kWh)
CO2 per tonne-kilometre
Diesel 130g
EV 36g
https://www.linkedin.com/pulse/why-medium-duty-truck-low-hanging-
fruit-transport-david-thackray/
52. www.tevva.com
WHY EREV IS PREFERRED OVER BEV
BEV range is not constant, it varies with
Temperature
Driver behavior
Traffic patterns
Ancillary loads (refrigeration, hydraulics)
Greater than 2:1 variance from max to
min
Consequences
100 mile duty needs a 250 mile battery
£230 per kWh (approx. at 2019 prices)
11kgs per kWh
For an 12T truck, this means:
£28k additional battery
1320kg lost payload
Capex per tonne of payload – c.60% higher
53. 26/10/2021 53
ONE DRIVETRAIN – TWO DRIVERS
David Thackray, Sales Director at Tevva
Tevva 7500kg gvw
0.39 kWh per kilometre
UPS Driver, 100 drops per day
Tevva 7500kg gvw
0.79 kWh per kilometre
54. 26/10/2021 54
ELECTRIC TRUCKS
FOR THE REAL WORLD
Thank you
David Thackray
Sales and Marketing Director, Tevva
david.thackray@tevva.com
56. How to
decide which
solution
works in
your case?
?
Infra-
structure?
Vehicle
supply?
Legal?
Costs?
Emissions?
Availability
of fuel?
Range and
payload?
A myriad of
solutions
exists
Sustainable Logistics Roadmap | S7 Low Emission Energy Sources
56
57. LEFV Decision Making Template
Determine in three steps the potential solutions:
Sustainable Logistics Roadmap | S7 Low Emission Energy Sources
57
Applicability
Step 1. Determine
Applicability of
LEFV solutions to
your use case
Availability
Step 2. Determine
Availability of LEFV
solutions in your
market
Feasibility
Step 3. Determine
Feasibility of the
LEFV solutions in
cost and emissions
58. Step 1. Determine applicable LEFV solutions
Questions of step 1
Determine
1. What is the
timeframe?
2. What is the
operating
range?
3. Which fuels
to include?
Select
applicable
LEFV
solutions
Sustainable Logistics Roadmap | S7 Low Emission Energy Sources
58
59. Sustainable Logistics Roadmap | S7 Low Emission Energy Sources
Output shows the Low emission fuel solutions in a particular year (evolvement of technology);
Final categories and chosen solution to be made by each company.
Step 1. Determine applicable LEFV solutions
2025 concept (example only) 2030 answer (example only)
59
Source: Example derived
from Unilever
Urban
100-300
km
300-500
km
500-
1000km
1000km+
1-[0T – 1.3T] Electric Electric Biofuel Biofuel Intermodal
2-[1.3T – 3.5T] Electric Electric Biofuel Biofuel Intermodal
3-[3.5T – 7.5T] Electric Electric Biofuel Biofuel Intermodal
4-[7.5T – 12T] Electric Electric Biofuel Biofuel Intermodal
5-[12T – 17.5T] Biofuel Biofuel Biofuel Biofuel Intermodal
6-[17.5T – 26T] Biofuel Biofuel Biofuel Biofuel Intermodal
7-[26T+] Biofuel Biofuel Biofuel Biofuel Intermodal
Urban
100-300
km
300-500
km
500-
1000km
1000km+
1-[0T – 1.3T] Electric Electric Electric
Electric/
Hydrogen
Intermodal
2-[1.3T – 3.5T] Electric Electric Electric
Electric/
Hydrogen
Intermodal
3-[3.5T – 7.5T] Electric Electric Electric
Electric/
Hydrogen
Intermodal
4-[7.5T – 12T] Electric Electric Electric
Electric/
Hydrogen
Intermodal
5-[12T – 17.5T] Electric Electric Electric
Electric/
Hydrogen
Intermodal
6-[17.5T – 26T] Electric Electric
Electric/
Hydrogen
Electric/
Hydrogen
Intermodal
7-[26T+] Electric Electric
Electric/
Hydrogen
Electric/
Hydrogen
Intermodal
60. Step 2. Determine available LEFV solutions
Questions
Determine
What are the
locations of your
operation?
What vehicles are
available in the
market?
What fuel
infrastructure is
available?
What legal
requirements may
limit LEFV solutions?
Select
available
LEFV
solutions
Sustainable Logistics Roadmap | S7 Low Emission Energy Sources
60
61. Sustainable Logistics Roadmap | S7 Low Emission Energy Sources
Output: Which vehicles and infrastructure are available
Guidance: Legal considerations, reliability, etc.
Step 2. Determine available LEFV solutions
Vehicles Infrastructure
61
Source: Global Commercial Drive To Zero Program (globaldrivetozero.org)
Source: Véhicules et Avitaillement | Kit Environnement (terre-tlf.fr)
62. Step 3. Determine feasible LEFV solutions
Questions
Determine
what is
feasible?
1. What is your
investment cost?
2. What are the
operational cost?
3. What GHG
abatement costs
are included?
Total cost
of
ownership
(TCO)
Total
emissions
of
ownership
(TEO)
Sustainable Logistics Roadmap | S7 Low Emission Energy Sources
62
63. Sustainable Logistics Roadmap | S7 Low Emission Energy Sources
Output: Calculations based on the anticipated usage of total emissions and cost of ownership
Step 3. Determine feasible LEFV solutions
Total Emissions of Ownership
(TEO)
Total Cost of Ownership
(TCO)
63
Source: Example of FM Logistic, Mobility Comparator
kg
CO2e
64. Sustainable Logistics Roadmap | S7 Low Emission Energy Sources
Summary
Applicability
• Overview of
technical feasibility
• Indicative answer of
preferred solution
per use case
Availability
• Fuel and
infrastructure
availability
• Vehicle availability
• Legal/Policy options
Feasibility
• Guidance on TEO
calculations
• Reference to TCO
guidance
• Excel template for
calculations
64
Product 1.
LEFV Decision
Making Framework
Product 2.
LEFV Decision
MakingMatrix
67. What are you trying to influence as a shipper?
Vehicle/assets and fuel/energy
combination that you or your
carriers use in service delivery
1. Own assets
2. Exclusive use of assets
3. Chartered vessels/fleets
4. High volume and direct (and
long-term) contracts
5. Collaboration
Sustainable Logistics Roadmap Session 4: Procurement
67
68. Sustainable Logistics Roadmap | S7 Low Emission Energy Sources
How to incorporate your influence in
your procurement?
Does your company
have published
emission targets?
Are their internal
KPIs linked to GHG
emissions?
Is decarbonization
efforts part of your
procurement?
Is the footprint
measured?
Can relevant details
be shared with you
as a customer?
What is your emission
intensity?
Are you implementing
low emission fuels?
Are you using
renewable energy for
your Distribution
Centers?
What is your emission
reduction strategy?
Assess supplier’s
logistics
GHG emission calculation
capabilities
GHG goals and targets
and translation into
internal KPIs
Vehicle/assets and
fuel/energy combination
that you or your carriers
use in service delivery
GHG decarbonization
efforts across modes and
logistics sites
68
Details:
Smart Freight
Procurement
Questionnaire
69. Sustainable Logistics Roadmap | S7 Low Emission Energy Sources
What are you trying to influence as a shipper?
Assess
supplier’s
logistics
GHG
decarbonizati
on efforts
across
modes and
logistics sites
All modes
Is your company able to provide
transport solutions that make use of
alternative or low emission fuels
Please specify the alternative
transport solutions your company can
offer for the requested business
including a pre-shipment GHG
emissions analysis
Road freight
Is your company using specific
measures and technologies to reduce
its road freight related GHG
emissions?
Please list the measures in place to
reduce your company’s road freight
GHG emission that are applicable for
our business.
Logistics sites
Does your company’s sustainability
strategy include general energy
reduction plans and a shift towards
renewable energy sources for your
logistics sites?
Please indicate the % of renewable
energy that is used in the logistics
sites which will be included in the
tendered business.
Office buildings
Does your company’s sustainability
strategy include general energy
reduction plans and a shift towards
renewable energy sources for your
office buildings?
Please share your company's plans
for a general energy reduction and
shift towards renewable energy
sources for your office buildings.
69
71. Recap of
today
Sustainable Logistics Roadmap | S7 Low Emission Energy Sources
71
Additional reading
about today’s
subject?
Introduction Report
Low Emission Fuels
Beach head model
(Calstart)
Low Emission Freight
and Logistics Trials
Report (TRL)
72. SLR S6. Fleets and Asset Efficiency and Utilization
Continue building up your
own Road Map
Sustainable Logistics Roadmap
Worksheet
Sustainable Logistics Roadmap
Template
You can continue reviewing the
solution areas
Details on the TalentLMS
72
73. Sustainable Logistics Roadmap | S7 Low Emission Energy Sources
Key information all shippers should now (background
reading)
Fundamentals of low emission fuels
and energy sources
Overview of the current landscape
Industry experience and perspectives
Total Emissions of Ownership (TEO)
concept
Variation in Low Emission Fuels
73
74. Sustainable Logistics Roadmap | S7 Low Emission Energy Sources
Next session: Carbon Insetting, Offsetting and Financing
We invite you to:
Building upon the targets you would set
for your supply chain. Identify relevant
solutions you would implement.
How would you adjust your procurement
strategy to implement these solutions?
Identify the modes you are using now
and what is needed to shift to more
sustainable options
Prework (Recommended):
Watch Kühne Logistics University
video Module G
Read Carbon Insets for the Logistics
Sector
1. Getting Started
2. Calculate and report:
GLEC Framework
3. Vision, Goals and
Targets
4. Procurement
5. Solutions: Transport
Modes and Demand
6. Solutions: Fleet and
Assets Utilization and
Efficiency
7. Solutions: Low
Emission Fuels
8. Carbon Offsetting
and Insetting and
Finance
9. Resources and
Collaboration
10. Welcome day
74
75. Join our journey towards
efficient and zero-emissions
global freight and logistics
Thank you!
If you have further questions, reach
out to:
Raluca Voinea
raluca.voinea@smartfreightcentre.org
Rik Arends
rik.arends@smartfreightcentre.org
Editor's Notes
16.00 Rik: intro
16.15 Colin theory + questions
16.45 David Tevva
17.00 Rik Decision making
17.10 Case -
Rik
Rik
Whichever sector you’re in there are challenges in knowing which technology or fuel pathway to follow.
Technology neutrality is fine for policy making but can lead to multiple potential options that can be complex and daunting, it can lead to inaction and staying with “what you know”
The key will be understanding what works for your operation and supply chain and being able to compare “like for like”, “apples to apples”, “pears to pears” or “oranges to oranges”
Energy is used to liquify or compress the NG which can impact the Well to Wheel emissions
LNG/CNG trucks can have spark ignition engines or compression ignition engines, however the CI are technically dual fuel as they need diesel to help ignite the natural gas.
Dedicated NG trucks have methane slip catalysts to limit the methane slip through the engine.
Being put into practice by a number of truck fleets with manufacturers such as Scania, Volvo and Iveco now producing CNG/LNG trucks.
There are upstream emissions associated with the production and processing of natural gas, its transport and distribution, (Liquefaction and compression) and it is still a fossil fuel.
Potential methane leakage along supply chain and at truck refuelling although minimised/eliminated by good practice.
PROS
Cost and supply availability: LNG is a cheap fuel, especially now that gas supply is subject to an increase induced by shale oil extraction in the US
Energy diversification
CNG and LNG are not derived from petroleum, which accounts for 95% of all transport fuel use, and they are therefore effectively contributing to energy diversification in transport
Potential advantages related with local pollution and tailpipe GHG emissions
LNG can help meeting environmental goals related with local pollution abatement
LNG has lower carbon emissions per unit energy than diesel and HFO in the combustion phase
Established fuel in IMO codes
LNG has been integrated in the IGC (International Code of the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk) and IGF (International Code of Safety for Ship Using Gases or Other Low-flashpoint Fuels) codes of the IMO
Subject to oversized advantages in the current IMO regulatory framework
The current IMO EEDI calculation framework (which is based CO2 emissions at the numerator and transport work at the denominator) has important pitfalls favouring LNG, since all fuels are accounted for on a TTW basis (and LNG is allowed) and without consideration of methane slip
May help meeting IMO GHG emission reduction strategy if based on renewable carbon (biogas), but the supply availability (and competition in other end-uses) are limiting factors
CONS
The vehicles require modifications in engines and fuel tanks and therefore come at a higher cost, but this can be offset by lower fuel costs
Requires the development and deployment of a new fuel distribution infrastructure
Chicken and egg issue, capacity utilization,
Ships: lower flexibility on port calls
Trucks: best for hub & spoke
Comes with emissions of methane (a potent GHG) and CO2 before & during combustion
Methane slip, gas flaring and venting in its production phase, energy needed for its liquefaction and transport, fugitive emissions while transported (to remain in liquid state)
LNG is far from being enough to meet the real ambition of the IMO GHG emission reduction strategy
Well-to-wake emission reductions in the 0% to 15% range vs. diesel, once methane emissions are accounted
A revision of the current pitfalls in IMO regulatory framework (to be recommended!) would worsen significantly its appeal as a way to respond to the GHG emission reduction strategy
Unless it is used for port approach, even its contribution to local emission reduction is not effective
Port approach and hotel loads in ports often handled by with auxiliary engines: these are the ones that have an impact on ship performance on local pollution, not the main engines (used in open sea)
In trucks fuel efficiency penalty is greater during stop-start urban operations with SI engines less significant on long haul operations, CI engines better in urban driving
Amount of GHG savings very dependent on feedstocks and production processes e.g. manure is considered carbon negative actually removing GHG
Example of dairy products producer Arla in UK, setting up manure waste collection from dairy farms, AD plants and running the trucks on biomethane.
How far the feedstocks are transported can make a big difference.
Declarations on Well to tank emissions are needed under a harmonised and robust fuel certification system.
PROS
Can be effectively delivering on energy diversification and GHG emission savings
Need for adequate policy frameworks setting sustainability criteria (available in some regions globally – e.g. California, Canada, Europe, and in some sectors – e.g. aviation, with criteria set up for CORSIA)
In drop-in forms, biofuels do not need new fuel distribution infrastructure and can be used on existing vehicles
Blends can help handling cost challenges
Voluntary action from private sector started to lead to interesting developments
SkyNRG plant in the Netherlands, with commitments from KLM for volume of sales and opening to other players for additional commitments (BoardNow)
Relevant option to meet IMO 2020 regulatory requirements on sulfur content of maritime fuels
CONS
Not all biofuels are created equal when it comes to GHG emission abatement capacity
Need to make sure that other sustainability criteria are also met
Direct and indirect land-use change
Competition for land with food crops
Need for adequate policy frameworks setting sustainability criteria (missing in the case of shipping, where well-to-wake/life-cycle emissions are not adequately developed)
Fulfilling these means that sustainable production volumes may well be limited: need for prioritization of biomass resources for cases where it is most necessary
Aviation likely to be one of these
Other “hard to abate” sectors, including long-distance transport, may also qualify
LNG and CNG trucks may effectively help with GHG emission reduction if based on renewable carbon (biogas), but there is a need for sufficient supply
With a reliable and affordable source of biogas available, LNG and CNG trucks powered by biogas can be very effective to meet a number of environmental goals right now
Supply availability and competition with other end-uses are limiting factors for large-scale adoption
Costs have been and remain a challenge
Need for carbon pricing
Importance of other policies, in particular mandates and (even better) Low Carbon Fuel Standards
No specific advantages for emissions of PM and Nox when compared to current emission legislated trucks e.g. Euro VI in Europe with effective exhaust after treatment systems
Quick Poll: For what mode do you see a role for biofuels in 2030?
Air
Road
Rail
Maritime
Inland waterways
(multiple options)
A version of the PHEV is a Range Extender, these vehicles always run on electricity but have a petrol diesel engine onboard that generates electricity to drive the motors.
Some hybrid terms can be micro or mild hybrid which can be misleading, they are more motor assist systems than being able to propel the vehicle alone.
Electric Road Systems are taking place in Sweden and Germany, proposals in the UK
Battery technologies are advancing and prices are coming down , According to Bloomberg NEF in 2010 $1100/kWh in 2019 $156/kWh i.e. 87% drop
Electric for urban distribution and some regional
Long haul will be the challenge
Payload reductions
Charging infrastructure also a challenge, easier for depot back to base operations, smart charging to reduce “reinforcement costs”. Potential link up to own renewables generation = resilience
Potential for short sea shipping routes (e.g. ferries) first, will need cooperation at origin and destination ports.
Electric vehicles WTW GHG emissions all in the TTW/upstream phase. All dependent on electricity generation mix and grid/charging losses.
As grids decarbonise then GHG impact for electric vehicles will reduce
PROS
Flexibility of the technology
PHEV, BEV… several possible configurations
Reliance on established form of energy, produced on large scale and well known (electricity) and possibility (via PHEVs) to keep different options open (good for risk mitigation)
Already increasingly available, and set to grow very significantly due to supportive policy environment and clear economic drivers
Falling costs of batteries with increasing scale of production
Favourable TCO, especially for urban deliveries
Already capable to deliver net GHG emission reductions from a life-cycle perspective
Bound to deliver growing GHG emission savings thanks to prospects for further decarbonisation of electricity production
Can be coupled through contractual arrangements with green power supply
Low investment risks on charging infrastructure, can be fairly easily integrated in logistic fleets
Full control of investment decisions (vehicles, chargers, power supply) and good chances to establish B2B dialogue with established players (vehicle providers, power suppliers)
Could be coming with additional economic opportunities if/when designed/developed accounting to power system flexibility constraints
CONS
Higher investment costs, requiring financial arrangements to be overcome
Major issue for capital-constrained actors
Limited volumes of vehicle supplies to date
Requires investments on both vehicles and charging infrastructure
Well suited for urban and hub-and-spoke deliveries, greater challenges for other mission profiles (especially if there is a need to rely on third-party charging infrastructure)
Need to adjust power system capacity in case of large fleets
High power required to supply large vehicles (potential issues with growth of variable renewable energy sources)
Novelty (requires to develop new procedures and capacities)
Uncertainties due to dynamic market, technology and policy developments (despite the overall resilience)
Potential risk for residual value of assets after first useful life (an aspect that is mitigated by clear policy direction)
There may well be more H2 “colour” classifications depending on from where the methane is derived e.g. waste
In ICE as a dual fuel system
Fuel cell electric vehicles still have batteries.
Electrolysis pathway needs source of water and purity of hydrogen can be critical for fuel cells.
Delivery of Hyundai FCEV destined for Switzerland, trials with COOP in Switzerland, 6 x H2 refuelling stations planned
FCEV Toyota Hino USA partnership to develop Class 8 truck for North American market
Compared to pure EV the energy lost within the hydrogen fuel pathway are high. Around 30% of the renewable electricity will drive the wheels via the hydrogen pathway compared to 75% with direct BEV pathway
Majority of Hydrogen produced by SMR from fossil methane. Effectiveness of CCS and its feasibility will be vital if SMR continues to be a fuel pathway.
Green hydrogen will require large amounts of available renewable electricity and more renewable capacity will be needed due to the energy losses in the H2 pathway.
Using current electricity grid mix will not show GHG reductions
Most new hydrogen production facilities will only come on stream if truly green.
PROS
Flexibility: hydrogen can be produced from several primary energy sources, including fossil and non-fossil ones
With carbon capture and storage, hydrogen can ensure that fossil hydrocarbons have a role to play in a carbon-constrained world: this has significant geopolitical advantages
In countries that have limited capacity to produce renewable electricity and store CO2 underground, hydrogen (or derived energy carriers like ammonia or LOHCs) offer an opportunity to import low-carbon energy
Hydrogen can be used for energy storage, supporting a power systems that is bound to depend on increasing amounts of variable renewable energies
Hydrogen and electrofuels can be produced in large scale and, potentially, at affordable costs, in parts of the world where there are abundant renewable energy resources, offering a market value to resources that would otherwise be stranded
When used in combustion applications and/or fuel cells, hydrogen and ammonia do not lead to tailpipe emissions of GHGs
If they are produced from low-carbon pathways (from electrolysis of renewable electricity or from methane and/or other hydrocarbons with carbon capture), hydrogen and ammonia can lead to low well-to-wheel GHG emissions
Hydrogen can be also combined with renewable forms of carbon to produce synthetic hydrocarbons
CONS
Producing hydrogen and synthetic fuels from electrolysis in large scale requires extremely large amounts of energy, given the significant losses occurring across the hydrogen and/or synthetic fuel use chains
When used to produce hydrocarbons, hydrogen needs to be combined with carbon from renewable sources
This is either carbon from biomass, which is limited in terms of sustainable availability, or carbon from Direct Air Capture (DAC) of CO2, a process that is inherently coupled with rather high energy requirements, given the low concentration of CO2 in the atmosphere and the need to split the CO2 into CO and oxygen to combine the carbon in the CO with hydrogen to produce the fuels
When used to produce ammonia, hydrogen needs to be combined with nitrogen from the atmosphere, also requiring a complex and energy intensive chemical process
When used in gaseous form or as ammonia, hydrogen requires the development of a new fuel distribution infrastructure
Given its fuel distribution model, similar to liquid fuels, this is something that entails inevitable investment risks and requires strong coordination on the fuel and vehicle side, limiting the possibilities for single actors (e.g. logistics companies) to take action swiftly and effectively on climate change
Due to the thermodynamic losses, FCEVs and hydrogen ICE vehicles need far lower carbon intensities of electricity production to deliver the same life-cycle emissions of BEVs
Would you go for hydrogen or electric in 2030 for your road freight?
Hydrogen
Electric
Lets focus a bit on the solutions to decarbonize and how you can influence through procurement in one way or the other. Its also a outlook to next weeks session
Bonne
Rik
SFC was commissioned to produce a report covering various aspects of low emission fuels and vehicles for road freight
Starting with the basics of terms and definitions to introducing the concept of Total Emissions of Ownership that can sit along side Total Cost of Ownership
Looking at the current policy landscape and drawing on experiences within industry.