Diverse energy choices, market-led changes will drive change in what powers vehicles
In a recent survey of C-suite executives, company transportation fleet managers and business owners, 86% of respondents expressed some level of interest in vehicle fleet electrification.
The allure of electric vehicles (EVs) hasn’t escaped Pennsylvania policymakers’ notice. Early October featured lawmaker test drives of EVs, a Senate committee hearing on the subject and discussion of the industry’s job and economic growth potential and reduced emissions.
The focus comes at a time when companies are faced with ambitious federal and state carbon goals. The Biden administration wants half of all vehicles sold to be zero emissions by 2030, and it wants 100% carbon-free electricity by 2035. Pennsylvania joined the U.S. Climate Alliance and recently announced plans to generate 50% of government building energy through solar.
In a report on the Smart Energy Decisions vehicle fleet survey, “State of Vehicle Electrification,” which was sponsored by NRG, more than two-thirds of respondents said they expect to electrify their fleet vehicles in the next five years. The specifics are a bit more telling. Asked what share of their fleet they plan to electrify in that time, 12% said more than half and 30% were aiming for a tenth to a half of their fleets. But 58% aren’t sure or will address less than a tenth of their fleets.
This illustrates the danger of policy ambitions and mandates outpacing the marketplace.
While seeking to meet their ESG standards, many companies have developed their own commitments to environmental solutions that work with their business plan and values. And that’s the catch. Policymakers can’t force that timing. The market and customer demand must be the leading factors for businesses to decide when it’s right to make investments in alternatives.
That’s not a secret to those in the industry. Although heavy-duty trucks are more efficient now, the Pennsylvania Motor Truck Association warned against putting mandates on the industry before the technology is ready and the demand is there, citing overall cost increases as one consequence of doing so.
It is critical that businesses and consumers have choices. EVs dominate the discussion about reducing vehicle emissions. Yet they’re only one aspect of alternative fuel vehicles (AFVs.)
Diversity is crucial with respect to the electrification of any sector of our economy, and the same is true of AFVs.
In addition to cars fueled by electricity, we have options for AFVs powered by biodiesel, ethanol, hydrogen, natural gas and propane.
Although other alternatives are in various states of adoption and would certainly require the fueling infrastructure to support their proliferation, we should keep in mind that electrification is just one option. Here’s a quick look at others:
- Biodiesel: With properties similar to petroleum diesel, biodiesel is a domestically produced, renewable fuel made from vegetable oils, animal fats or recycled restaurant grease. It can be used in diesel vehicles or any equipment that operates on diesel fuel.
- Ethanol: This is a renewable fuel made from corn and other plant materials already in widespread use. More than 98% of gasoline in the U.S. contains ethanol.
- Hydrogen: When used in a fuel cell to provide electricity, it creates zero tailpipe emissions — only water vapor and warm air. Light-duty fuel cell electric vehicles can fuel up in less than five minutes and reach a 300-mile-plus driving range. These vehicles are in the early stages of adoption, and efforts are underway to increase the necessary fueling infrastructure.
- Natural gas: Readily available, natural gas powers more than 175,000 vehicles in America and about 23 million vehicles worldwide. Natural gas vehicles are considered good choices for high-mileage, centrally fueled fleets that won’t need remote refueling. For vehicles that travel long distances, liquefied natural gas provides a fuel range more comparable to conventionally fueled vehicles.
- Propane: Also known as liquefied petroleum gas, it’s been used worldwide as a vehicle fuel for decades. A byproduct of natural gas processing and crude oil refining, it typically costs less per gallon than gasoline. There are nearly 200,000 on-road propane vehicles with certified fuel systems in the United States, many in fleets like school buses and police vehicles.
There’s no singular path forward on emissions reductions and responsible use of natural resources. Fewer policy mandates, coupled with energy diversity and a reliance on market-driven solutions, will help business and industry drive to self-sustaining ESG goals.
