.png)
Today, “go electric” or “switch to EVs” seems to be the most common sustainability message for fleets. The reality is that going electric immediately is possible only for some fleets, and only for some of their vehicles. Where electrification is not feasible, fuel switching can be a practical, and immediately available, option for fleets to hit emission reduction goals.
Go Electric! Go Electric?
Electric vehicles offer a clean and efficient solution for decreasing both fuel spend and emissions. With many funding opportunities and incentives to support the transition, the switch can seem timely and practical, but the investments for EVs and related infrastructure can be significant. Fleets may have a diverse range of vehicles with varying ages and technology levels, making a wholesale transition to EVs financially impractical.
EVs rely on charging infrastructure that requires both time and money to establish. Fleets need to engage with their local and state governments, utilities, and communities and they must consider grid capacity, locations, and current and future charging needs. Once infrastructure is planned, the installation can take time and there may not be alternative charging options while the infrastructure is established.
For organizations that have the time and money to invest in EVs and infrastructure, the current availability of EVs may not meet the variety of operational needs of fleets. For fleets with vehicles requiring extensive daily travel, such as delivery or long-haul transportation, and those in remote areas, EV ranges may present a challenge.
While these present real challenges, EVs are still a great option in a holistic vehicle replacement strategy. The important point for fleets is that EVs are not the only way to make progress towards sustainability and fossil fuel independence.
Many Options to Fit Your Fleet
There are several alternative fuels available today that can be used either as a “drop-in” replacement in gas or diesel engines, or that may require minor vehicle modifications. These fuels are cleaner burning, with lower tailpipe emissions, and are often produced from renewable sources. In addition to reducing greenhouse gas (GHG) emissions, they can cost less than their fossil fuel counterparts while also resulting in enhanced vehicle performance. These economic benefits alone may support the business case for switching fuels, with the sustainability impovements providing an added bonus. Below are some of the commercially available options today, and a few new fuels on the horizon:
- Biodiesel (BD): Biodiesel is a renewable fuel made from biological sources, such as vegetable oils, animal fats, or recycled cooking oil. It can be blended with traditional diesel fuel and used in existing engines with little to no modification up to around 20%, and at higher blends up to 100% with the use of available vehicle upfits. Biodiesel has the advantage of reducing net carbon dioxide emissions compared to petroleum diesel, while also reducing particulate matter tailpipe emissions.
- Renewable Diesel (RD): A true “drop-in” replacement to conventional diesel, RD can be blended at any level without vehicle modifications. The process to create renewable diesel differs from biodiesel, however they are both produced from renewable feedstocks like used cooking oils and animal fat and provide similar carbon emission reductions. Due to its higher cost, most RD in the US currently goes to western states (CA, OR, WA) with low carbon fuel standards that subsidize lower prices. These programs have proven so successful at displacing petrodiesel (60% reduction in California alone), that seven other states are now considering enacting similar legislation.
- Ethanol (E15, E85): Ethanol, often derived from crops like corn or sugarcane, can be blended with gasoline to reduce the carbon intensity of the fuel and increase octane. Most gasoline in the US already contains 10% ethanol, with blends up to 15% considered safe for vehicles 2001 and newer. Availability of E15, or “Unleaded 88” due to its higher octane, is growing and usually priced low enough under Regular to yield cost savings despite the minor impact on mpg (1-2% decrease). Flex fuel vehicles (FFVs) are able to run on blends containing up to 85% ethanol, which can provide cost savings and carbon reductions. Fuel economy can decrease 15-27% compared to regular gasoline, but the cost difference between these products may make up for this loss, especially for vehicles requiring premium gasoline since E85 has an octane rating of 104.
- Propane (Liquefied Petroleum Gas - LPG): Propane, also called autogas, is a clean-burning alternative fuel that can be used in existing spark-ignition engines, making it a replacement option for traditional gasoline vehicles. Conversion kits are relatively inexpensive, especially for fleets with in-house mechanics, and will result in reduced emissions and lower fuel and operating costs. Like diesel and natural gas, there are now ways to produce renewable propane from non-fossil feedstocks, resulting in a chemically identical drop-in replacement with even lower carbon emissions at the full lifecycle level.
- Natural Gas (Compressed Natural Gas - CNG): Compressed natural gas can be used as an alternative to gasoline or diesel in vehicles that are equipped with compressed natural gas engines, or have been retrofitted to accommodate the fuel. Typically used in medium or heavy duty applications, CNG is usually priced less than diesel with much less price volatility (apparent in the graph below). The fuel offers reduced carbon emissions, and similar to diesel and propane can be produced from renewable sources. Renewable natural gas (RNG) has one of the lowest carbon intensities at a lifecycle assessment, due to the higher global warming potential of methane in the atmosphere compared to CO2.
- Emerging Fuels: Hydrogen can be used as a fuel for internal combustion engines or to power electric vehicles (Fuel Cell Electric Vehicles, or FCEVs). Hydrogen-powered vehicles emit only water vapor when burned, qualifying as a zero-emission alternative, although the carbon intensity of the hydrogen will vary depending on how it is produced. There is a color-coding system used to signify how clean the fuel is, with darker colors indicating fossil-derived hydrogen and lighter colors representing hydrogen produced from water and electricity (or even naturally occurring, “white” hydrogen). Electrofuels, or e-fuels, are synthetic fuels produced through processes that use renewable energy to convert carbon dioxide and hydrogen into liquid fuels. Like hydrogen, these fuels can have varying carbon intensities at a lifecycle view, but they offer promise as another sustainable drop-in replacement fuel, compatible with existing ICE vehicles and fueling infrastructure
When considering alternative fuels for existing ICE vehicles in a fleet, factors such as fuel availability, infrastructure requirements, vehicle compatibility, and cost should be taken into account. However, the adoption of alternative fuels can play an important role in efforts to enhance energy security, reduce GHG emissions, and improve local air quality.
“Right-Now” Solutions in a Long-Term Plan
Choosing alternative fuels for existing vehicles, rather than waiting to switch all vehicles to electric, can be a strategically advantageous decision for fleets. This also helps us collectively achieve much needed global reductions in CO2 right now, and not several years from now. Options like biodiesel, ethanol, propane, or CNG often leverage existing fueling infrastructure, making the adoption process more straightforward and cost-effective, while still delivering immediate CO2 reductions. Below are the estimated well-to-wheel GHG emissions for a Light Duty Truck running on various fuel sources:
For fleets with vehicles carrying heavy loads, traveling long distances, facing extreme temperatures, or serving areas with minimal EV infrastructure, alternative fuels like biodiesel, propane, or CNG may offer a more practical solution than an EV. These fuels can provide comparable or even extended range capabilities without the need for frequent recharging, overcoming range anxiety concerns.
Fleets often have a diverse range of vehicles with varying ages and technology levels, making a wholesale transition to EVs financially impractical. In such cases, adopting alternative fuels that can be seamlessly integrated into the existing fleet, potentially through retrofits or simple modifications, allows for a more gradual and financially manageable transition toward sustainability. This allows fleets to prioritize options that provide a balance between environmental benefits and cost-effectiveness.
These alternative fuel options empower fleets with ICE vehicles to make meaningful strides toward sustainability, while maintaining the practicality and compatibility of their existing vehicle fleets. Choosing the most suitable alternative fuel depends on factors such as fuel availability, infrastructure considerations, regional regulations, and the fleet's overall environmental objectives. While EVs continue to be a promising solution for a greener future, the practicality of adopting alternative fuels allows fleets to pursue sustainability goals with “right now” changes that don’t eliminate the options for EVs (or newer technologies) in the future.
About C6 Insights
C6 Insights’ carbon-management platform provides industry-leading emissions and sustainability analytics for fleets using existing telematics data. We embrace a multi-faceted approach to fleet decarbonization that is not just about reducing emissions; it's about reshaping the future of mobility and logistics. Our mission is to accelerate the decarbonization of transport through better measurement, education, and engagement, and by proving the financial benefits of a low-carbon fleet.
