Decarbonising the energy used to power logistics operations and real estate is critical to meeting climate targets and to reduce energy costs. These were just some of the topics of discussion among GLP colleagues and contacts at the recent GLP Global Customer Conference.
The clean energy workshop looked at the obstacles for transition to green energy and the challenges in delivery of this source of energy for businesses. The group discussed the upfront cost to electrify HGV fleets and for roof top solar panel installations. It is clear that future electric fleets will need to access new sources of charging infrastructure, which carries additional investment. When and where vehicles charge will have significant implications for business operations, particularly for supply chains and the range required for electric trucks with the delivery of goods.
Then there is the question of who has the responsibility for delivering the charging infrastructure that is going to be needed to supply the power needed. Is it the energy provider, landlord, the tenant or the operator? Charging infrastructure and investment in electric vehicles was considered as a chicken-and-egg scenario and both carry risk and cost.
To break the chicken-and-egg loop, the workshop concluded that new catalysers are needed such as government subsidies and regulations together with partnerships with providers to help deliver the new infrastructure and technology that are needed. Delivery of clean energy solutions will require collaboration and commitment, for example, a supplier can only commit to charging infrastructure if a client commits to using it over a long period of time.
Options for transitioning to an electric HGV fleet need to be carefully thought through. Where is the best place to start? With small vans or heavier long-haul vehicles? Is the best approach to pilot in one country before expanding to others? Is charging best managed onsite or at charging hubs across supply routes?
It was suggested that there has to be a willingness to explore options and commit, which, in an unpredictable economic times, can be a challenge for businesses. Understanding the different options, particularly when there are limits to standardisation, requires a full understanding about different strategies, options and costs. Considering new technologies and developing new collaboration and partnerships is all part of that learning.
Finding space for charging hubs can be an additional obstacle, but landlords can help with land optimisation and the consideration of available space that is in logistics yards and adjacent to existing warehouse premises. There is a collective incentive and benefit for the operator, owner and end user to work together to make this happen.
Logistics providers need to consider how they will adapt charging practices to fit with operational requirements. Given the speed of charging when compared to re-fuelling non-electric vehicles, there is potentially more downtime and with that a higher cost.
Typical operations are inbound in the morning and outbound in the afternoon, but that needs a rethink when charging time is factored in.
Battery storage solutions and charging times are critical issues for the logistics industry to consider for implementation. There needs to be a clear and robust solution to the storage of surplus energy that is generated by roof top solar and other renewable energy sources.
New battery technologies such as swapping, slow charging and fast charging all need to be considered as they offer different benefits to the logistics sector. New services are being bought forward such as charging as a service or “uptime as a service”. The combination of charging with storage and renewable power generation and “All in one”, “multi-scenario”, “ultra-fast charging” all offer new solutions for different realities, different needs and different local constraints.
Delivering clean energy isn’t straight forward, but as the workshop discussion demonstrated this is a fast moving area where there is a lot to navigate and new solutions being developed and bought to market that need careful and thoughtful consideration.
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