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LAS VEGAS – The adoption of low and zero emission commercial trucks will be dependent on the development of a new fueling and charging system. However, industry stakeholders will have to overcome many challenges along the way.
Energy sector leaders emphasized the importance of government incentives and consistent energy policies, as well as industry partnerships, to ease the transition to cleaner trucks and infrastructure that supports them.
Andy Walz, Chevron’s president of Americas Products, said: “We are trying skate where the puck resides.” “We believe that this will happen, but today it is difficult to get consumers to want to spend more on products.”
Walz was among the speakers who spoke about the fueling and charging infrastructure needed for commercial vehicles during the 2024 Advanced Clean Transportation Expo held May 20-23.
Selda Guinsel, Shell Group’s chief technology officer and executive Vice President Technology, said that fuel providers must create more energy, while reducing emissions. This is a challenge.
She added, “We also realize that there is no single solution to enable energy transition. We must therefore work on multiple solutions.”
In addition to the deployment of battery-electric vehicles, fleet operators and stakeholders in the industry are exploring and investing in alternatives such as biofuels and renewable diesel, renewable gas, hydrogen fuel cells trucks and hydrogen combustion engine.
Walz, a Chevron executive, expressed concern over regulatory requirements in certain areas, such as California, which are moving towards a single strategy — electrification.
“Don’t limit your options.” “Put all options on the board,” he said. He added that energy must be affordable, reliable and cleaner.
Chanel Parson, director for clean energy and demand response at Southern California Edison, stated that it will require “unprecedented electricification” for California to achieve carbon neutrality by the year 2045. The electrical grid must be updated rapidly to meet EV charging requirements. Grid-related projects, however, can take many years to complete.
If we don’t act now, it will be too late for us to meet the demand.
Chanel Parson is the director of Clean Energy and Demand Response for Southern California Edison
SCE, a California-based electric utility, advocates for the streamlining of grid construction projects. It also upgrades the grid in key areas such as ports and cargo corridors.
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Parson said, “If we don’t start now, it will be too late for us to meet the demand.”
Shell’s Gunsel expressed similar concerns about the construction of EV charging infrastructure.
Gunsel said, “We were told that in one location, it could take up to 12 months for the utilities we use to get the energy they need.” “These are real barriers that hurt us when it comes to encouraging EV adoption.”
Charger providers can use microgrids to meet demand. These are local electrical grids that are built on site.
WattEV, a company that has four charging stations in operation, created a microgrid on its Bakersfield, Calif., location. The project cost over $25 million.
Emil Youssefzadeh is the chief technology officer at WattEV and co-founder. “Part of this was to show that it’s possible to reduce energy costs,” he said. “It’s a big investment, but we think that it will reduce the cost of energy in the long run.”
Salim Youssefzadeh explains the expansion plans of WattEV, a provider of electric trucks-as a service, during a press conference at ACT Expo 2024. (ACT Expo)
TravelCenters of America will install a microgrid in Ontario, Calif. – the busiest location for the company, according to Dean Bushey.
A microgrid can help reduce “demand” and ensure that the company is able to meet its power needs without having to pay higher surge prices from the utility.
John DeBoer is the head of eMobility Solutions in North America at Siemens. He said that there are tens and thousands of different charging models across the U.S. Grid, which can change the economics of the charging sites.
“We’re noticing price spreads are increasing dramatically,” he said.
Incentives such as those in the Inflation Reduction Act of 2022 and Infrastructure Investment and Jobs Act of 2021 can help fund microgrids.
Speakers said that tax incentives and grants are critical in attracting capital for low-carbon options.
Walz, from Chevron, said that it would take a lot of money and subsidies for the world to see a real change.
SCE distributes incentives, and looks for areas where the market requires acceleration. Recently, SCE has begun to shift from incentivizing medium- and heavy duty vehicles to light-duty.
Parson said that many people don’t have enough money to buy vehicles, or the space to install infrastructure.
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Walz said that many low- and zero emission solutions cost more than diesel alternatives, and not many customers are willing to pay a higher price.
“That’s a good point to watch,” he said.
As adoption increases, the economics is expected to change.
Parson, of SCE, said that once we have enough infrastructure and capital in place to pay for the vehicles and the transformations themselves.
Partnerships among these various stakeholders will be necessary to implement new fuel infrastructure.
Gunsel said Shell had partnered with BYD on EVs in China and Cummins for natural gas engines. In Europe, Shell is a founding member of the H2Accelerate Foundation, which works to enable hydrogen fueling in commercial road transport. Shell has also introduced its Starship 3.0 truck concept to highlight the opportunities to improve fuel economy through multiple technologies.
While hydrogen and electrification will be long-term solutions, biofuels such as renewable diesel, renewable natural gas, and renewable diesel can help reduce emissions now and in the future. Gunsel said Shell focuses on all solutions.
She said, “In the biofuels sector, we have made many investments in second-generation fuels that don’t compete with food sources.”
Chevron plans to increase its biodiesel manufacturing after acquiring Renewable Energy Group in 2022. The company paid $3.15 billion for the biofuels producer.
Walz added, “We also believe in renewable natural gas as well as compressed natural gas.”
Biodiesel and Renewable Diesel are not supported by government policies.
“It hurts us and does not help us get to where we want to be,” he said. He added that strong and consistent policies on energy are needed to enable energy transition.
Walz says that when making a choice, he considers the “single largest risk factor”.
“I don’t really care what policy is in place today, but it needs to be resilient,” he said. He added that policies with a two-, four or six-year cycle are not enough.
Walz believes that despite the difficulties, motivated parties will push forward to meet fleets’ needs.