Although today’s fleets are more fuel efficient than ever, the push is on for even greener fleets. There are a number of reasons for the pressure – from regulations to technological necessity – but the fact remains: Going green is no easy thing.
Deciding whether you are going to run a green fleet or not depends on the need. You must determine why a conversion to alternative power is right for your operation. You’ll also need to isolate the proper equipment and support systems to maintain it. It takes careful evaluation to determine if going green is for you.
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The Rationale
In the not-so-distant past, fleets converted for one simple reason: Air non-attainment area operations. In these situations, converting from diesel to one of the big three – natural gas, propane, or electricity – was crucial.
Today, carriers are changing for a whole host of different reasons. Whether it be to mitigate the pain from volatile diesel fuel prices or to meet internal or external sustainability goals, in some cases going green is the only way to go.
As more companies become environmentally conscious, they are requesting that their partners adhere to low emission standards, as well. In each case, the calculus for adopting green technologies may differ.
Fleets want to get ahead of the game. Those converting early are banking on the further greening of American freight commerce. They figure it’s better to be caught prepared, then unprepared.
Even as we talk about getting ahead of the game, the price of conventional fuels is at a historic low. Many experts don’t expect the price of diesel to appreciably rise until 2016. For some fleets, that’s a value proposition that’s much farther down the line.
What Are the Technologies?
Currently, natural gas is the leading option for those looking to convert their heavy-duty trucks. When it comes to light and medium fleets, however, propane autogas and hybrid-electric lead the way. Of the different gas options, CNG is preferred over LNG.
Propane offers a very easy fueling option, and the capital investment necessary to set up an on-site fueling system is lower than it would be for CNG. Upfront costs for propane autogas are also lower and the propane-autogas vehicle network options are expanding.
Considering very few fleets are set up to handle electric vehicle charging, significant setup investment is required on that side. Until charging and battery technologies improve, one must also consider the downtime involved with charging electric and hybrid-electric vehicles.
Is Green for You?
While there are many advocates on both sides of the green debate, from both inside and outside of the fleet, expensive conversions aren’t always the right way. Deciding to invest in alternative fuel sources shouldn’t proceed without a careful cost / benefit analysis.
First, why are you adopting the technology? Is it to embrace a sustainability agenda or for purely financial reasons? If you aren’t adopting green technology to meet green goals, then it may not be financially advisable over the long term. Not only are these options more expensive, but right now natural-gas engines are not as fuel efficient as diesels. Out-of-route fuel costs must also be considered.
Furthermore, you must make sure you have applied proper due diligence to the type of equipment you plan on integrating into your fleet. There will be initial costs of deployment, infrastructure investments, technician training, truck driver training, and long term fuel needs.
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The best way to figure out if this is something your fleet should invest in is to calculate how to offset higher costs. You will have to factor in vehicle-acquisition costs, upgrades, and infrastructure improvements. But if you can offset those costs with fuel-cost savings, tax breaks, and other incentives, the switch may be for you.
In the end, it’s important to remember that making hasty decisions is never a good idea. Don’t jump on the green bandwagon just because it seems like everyone else is doing it. Make a careful evaluation of your operation before you decide to go green