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Session 7. Low Emission
Energy Sources
Sustainable Logistics
Roadmap Training
26 October 2021
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
Sustainable Logistics Roadmap | S7 Low Emission Energy Sources
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3
Don’t share commercially sensitive information
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
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
Solutions for decarbonizing freight and logistics
Sustainable Logistics Roadmap | S7 Low Emission Energy Sources
6
Focus of today
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
Solutions for low emission fuels and energy
sources
Energy solutions
Energy
Solutions
Natural Gas Biofuels
Electric
Hydrogen
fuel cell
electric
E-fuels
Sustainable Logistics Roadmap | S7 Low Emission Energy Sources
9
What makes an energy source “low” or “zero” emission
Sustainable Logistics Roadmap | S7 Low Emission Energy Sources
10
Source: GLEC Framework 2.0 (2019)
Breakdown
of Upstream
Emissions
Sustainable Logistics Roadmap | S7 Low Emission Energy Sources
11
 Feedstock
matters
 Origin of
electricity
matters
Options for fuel and energy (current and future)
ENERGY
SOURCE
ROAD SEA/ WATERWAYS AIR RAIL LOGISTICS
SITES
Fossil fuel -
petroleum
based
 Diesel
 Gasoline
 Liquified petroleum gas (LPG)
 Heavy fuel oil
 Marine diesel oil (MDO)
 Kerosene  Diesel  Diesel
 Gasoline
 LPG
Fossil fuel -
natural gas
 Compressed natural gas (CNG)
 Liquified natural gas (LNG)
 LNG  LNG  CNG
 LNG
Biofuels  Biodiesel
 HVO (Hydrotreated vegetable
oil)
 Biomethane (Bio-CNG or LNG)
 Bioethanol
 Bio-MDO
 Bio-LNG
 Sustainable
aviation fuels
(SAF)
 Bio-LNG  Biodiesel
 HVO
 Biomethane
 Bioethanol
Electric  Electricity (plug-in hybrid
vehicles, battery electric)
 Electricity (battery electric
vessels)
 Electricity (small
applications)
 Electric  On site generation
 Green tariffs
Hydrogen  Hydrogen (combustion and fuel
cell electric vehicles)
 E-fuels
 Hydrogen (combustion and fuel
cell electric vehicles)
 E-fuels (incl ammonia)
Other  Wind
 Solar
 Solar
Sustainable Logistics Roadmap | S7 Low Emission Energy Sources
12
©
Your challenge
Sustainable Logistics Roadmap | S7 Low Emission Energy Sources
13
Operators
Shippers
Energy
Providers
Policymakers
Vehicle
Manufacturers
Natural
Gas
• CNG
• LNG
Biofuels
• HVO
• Biomethane
Electric
• Battery
• eHighways
Hydrogen
• Green
• Blue
• Grey
E-fuels
• Renewable
• Gas-to-
liquid
Challenge:
which way
to go?
 What is it?
 It’s already
happening
 Well-to-wheel
GHGs
 Pros and cons
Low emission energy sources
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
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
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
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
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
Biofuels
It’s already happening
Sustainable Logistics Roadmap | S4 Low Emission Energy Sources
20
Source: gcaptain, GoodFuels; Gaz Mobilité Suise and Carrefour; Airline Ratings
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
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
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
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
Sustainable Logistics Roadmap | S4 Low Emission Energy Sources
It’s already happening
Electric vehicles and vessels
25
Sources: Calstart Zero-Emission Technology Inventory, IEA, Scania, Clean Technica, Greenbiz, Siemens, Electrive, Heineken
Sustainable Logistics Roadmap | S4 Low Emission Energy Sources
It’s started to happen
Electric road vehicles
26
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
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
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
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
Hydrogen
It’s almost happening
Sustainable Logistics Roadmap | S4 Low Emission Energy Sources
31
Sources: Hydrogen Council Europe, Waterstofmagazine, Toyota
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
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
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
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.
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
Wildcard: wind-powered ships
Sustainable Logistics Roadmap | S4 Low Emission Energy Sources
37
Source: Maritime Executive, Groene Zaken
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
?
Q&A
Sustainable Logistics Roadmap | S7 Low Emission Energy Sources
39
DEPLOYING ELECTRIC MEDIUM DUTY
TRUCKS IN THE REAL WORLD
26/10/2021 41
UPS CASE STUDY
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
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
26/10/2021 44
UPS – LUKE WAKE VP OF FLEET MAINTENANCE & ENGINEERING - DELIVERY
EQUIPMENT
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
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
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
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
26/10/2021 49
DEFINING SUSTAINABILITY: BATTERY CHEMISTRY
Several Different Chemistries – Each Offering a Trade-Off
Lithium Cobalt Oxide(LiCoO2) — LCO
Lithium Manganese Oxide (LiMn2O4) — LMO
Lithium Nickel Manganese Cobalt Oxide (LiNiMnCoO2) — NMC
Lithium Nickel Cobalt Aluminum Oxide (LiNiCoAlO2) — NCA
Lithium Titanate (Li2TiO3) — LTO
Tevva batteries are:
Lithium Iron Phosphate (LiFePO4) — LFP
LiFePO4
Low Cost
Extreme Longevity
Excellent Thermal Stability
COBALT-FREE
Bulky (low energy density)
Heavy (ish)






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/
26/10/2021 51
BRAND ATTRIBUTES AND BRAND VALUES
Appendices:
Not for presentation
Q&A purposes only
(if needed)
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
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
26/10/2021 54
ELECTRIC TRUCKS
FOR THE REAL WORLD
Thank you
David Thackray
Sales and Marketing Director, Tevva
david.thackray@tevva.com
How to decide?
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
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
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
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
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
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)
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
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
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
Questions
Sustainable Logistics Roadmap | S7 Low Emission Energy Sources
65
Your influence as a shipper
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
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
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
Next steps
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)
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
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
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
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

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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
  • 8. Solutions for low emission fuels and energy sources
  • 9. Energy solutions Energy Solutions Natural Gas Biofuels Electric Hydrogen fuel cell electric E-fuels Sustainable Logistics Roadmap | S7 Low Emission Energy Sources 9
  • 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)
  • 11. Breakdown of Upstream Emissions Sustainable Logistics Roadmap | S7 Low Emission Energy Sources 11  Feedstock matters  Origin of electricity matters
  • 12. Options for fuel and energy (current and future) ENERGY SOURCE ROAD SEA/ WATERWAYS AIR RAIL LOGISTICS SITES Fossil fuel - petroleum based  Diesel  Gasoline  Liquified petroleum gas (LPG)  Heavy fuel oil  Marine diesel oil (MDO)  Kerosene  Diesel  Diesel  Gasoline  LPG Fossil fuel - natural gas  Compressed natural gas (CNG)  Liquified natural gas (LNG)  LNG  LNG  CNG  LNG Biofuels  Biodiesel  HVO (Hydrotreated vegetable oil)  Biomethane (Bio-CNG or LNG)  Bioethanol  Bio-MDO  Bio-LNG  Sustainable aviation fuels (SAF)  Bio-LNG  Biodiesel  HVO  Biomethane  Bioethanol Electric  Electricity (plug-in hybrid vehicles, battery electric)  Electricity (battery electric vessels)  Electricity (small applications)  Electric  On site generation  Green tariffs Hydrogen  Hydrogen (combustion and fuel cell electric vehicles)  E-fuels  Hydrogen (combustion and fuel cell electric vehicles)  E-fuels (incl ammonia) Other  Wind  Solar  Solar Sustainable Logistics Roadmap | S7 Low Emission Energy Sources 12 ©
  • 13. Your challenge Sustainable Logistics Roadmap | S7 Low Emission Energy Sources 13 Operators Shippers Energy Providers Policymakers Vehicle Manufacturers Natural Gas • CNG • LNG Biofuels • HVO • Biomethane Electric • Battery • eHighways Hydrogen • Green • Blue • Grey E-fuels • Renewable • Gas-to- liquid Challenge: which way to go?  What is it?  It’s already happening  Well-to-wheel GHGs  Pros and cons
  • 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
  • 25. Sustainable Logistics Roadmap | S4 Low Emission Energy Sources It’s already happening Electric vehicles and vessels 25 Sources: Calstart Zero-Emission Technology Inventory, IEA, Scania, Clean Technica, Greenbiz, Siemens, Electrive, Heineken
  • 26. Sustainable Logistics Roadmap | S4 Low Emission Energy Sources It’s started to happen Electric road vehicles 26
  • 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
  • 31. Hydrogen It’s almost happening Sustainable Logistics Roadmap | S4 Low Emission Energy Sources 31 Sources: Hydrogen Council Europe, Waterstofmagazine, Toyota
  • 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
  • 37. Wildcard: wind-powered ships Sustainable Logistics Roadmap | S4 Low Emission Energy Sources 37 Source: Maritime Executive, Groene Zaken
  • 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 ?
  • 39. Q&A Sustainable Logistics Roadmap | S7 Low Emission Energy Sources 39
  • 40. DEPLOYING ELECTRIC MEDIUM DUTY TRUCKS IN THE REAL WORLD
  • 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
  • 49. 26/10/2021 49 DEFINING SUSTAINABILITY: BATTERY CHEMISTRY Several Different Chemistries – Each Offering a Trade-Off Lithium Cobalt Oxide(LiCoO2) — LCO Lithium Manganese Oxide (LiMn2O4) — LMO Lithium Nickel Manganese Cobalt Oxide (LiNiMnCoO2) — NMC Lithium Nickel Cobalt Aluminum Oxide (LiNiCoAlO2) — NCA Lithium Titanate (Li2TiO3) — LTO Tevva batteries are: Lithium Iron Phosphate (LiFePO4) — LFP LiFePO4 Low Cost Extreme Longevity Excellent Thermal Stability COBALT-FREE Bulky (low energy density) Heavy (ish)      
  • 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/
  • 51. 26/10/2021 51 BRAND ATTRIBUTES AND BRAND VALUES Appendices: Not for presentation Q&A purposes only (if needed)
  • 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
  • 65. Questions Sustainable Logistics Roadmap | S7 Low Emission Energy Sources 65
  • 66. Your influence as a shipper
  • 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

  1. 16.00 Rik: intro 16.15 Colin theory + questions 16.45 David Tevva 17.00 Rik Decision making 17.10 Case -
  2. Rik
  3. Rik
  4. 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”
  5. 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.
  6. Being put into practice by a number of truck fleets with manufacturers such as Scania, Volvo and Iveco now producing CNG/LNG trucks.
  7. 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.
  8. 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
  9. 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.
  10. 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
  11. Quick Poll: For what mode do you see a role for biofuels in 2030? Air Road Rail Maritime Inland waterways (multiple options)
  12. 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.
  13. 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.
  14. 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
  15. 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)
  16. 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.
  17. 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
  18. 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.
  19. 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
  20. Would you go for hydrogen or electric in 2030 for your road freight? Hydrogen Electric
  21. 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
  22. Bonne
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  24. 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.
  25. Rik