If a carrier is thinking about transitioning to a sustainable energy source to drive their business forward, the time to dive into it is now.
Sylvain Cabanetos, director, business development at Cleo urged carriers to take advantage of grants aimed at broadening the use of renewable diesel, compressed natural gas (CNG), renewable natural gas, hydrogen, electricity and hybrid systems to fuel trucks.
“The grants won’t be there forever, take advantage of them to buy equipment and set up infrastructure,” he said during a panel discussion at an event on navigating energy transition in transportation in Mississauga, Ont.
“If you don’t, you will be beaten by the competition,” warned Anthony Mainville, president, AttriX Technologies, in his keynote address.
For-hire fleets will have to start reporting supplier sustainability compliance by 2025-26. The expected investment required from carriers will be 3% to 7% of revenue, Mainville noted. On the other hand, the potential contract loss risk for non-compliance will be 15% to 30% of current business. For sustainable transportation services, the estimated premium pricing opportunity is 5% to 15%, he said.
Mainville also predicted that Driver Inc. model carriers that are gaining market share by undercutting freight rates, will not be able to follow the sustainability transition and will not be present in five years.
Martin Blanchet, director of alternative powertrain sales, Peterbilt Motors Company, said for carriers with around100 trucks, buying one powered by a sustainable fuel system won’t get them in trouble.
Pick low-hanging fruit
“You will learn how they behave in winter, how much they cost to run per kilometer. This will shape the way you build quotes for freight. This one truck is a revenue generator for the future,” he said.
Brendan Wiggins, associate vice-president customer care at Geotab noted that there is so much opportunity to implement sustainable fuel sources, and carriers should pick low-hanging fruit. “Don’t worry about the challenging scenarios,” he said.
Mainville observed that a Quebec transportation company has monetized its electric fleet, including Class 8 trucks hauling 53-foot trailers. He said some clients are willing to pay a 5% to 15 % premium for clean transport. Some carriers have started with electric yard shunting trucks. And others are using CNG, a good transition technology, for long distance haulage.
The golden nugget
“There is no one size fits all, and it is important to collaborate with OEMs and technology partners,” he said.
Blanchet urged carriers to identify that ‘golden nugget’ that will help with the transition. Citing an EV for example, don’t use expensive fast charging for two hours, if there is a cheaper option over eight hours. He also advised fleets to ensure they pick the right truck for the job.
Wiggins said while challenges are the same, the local ecosystem drives technology adoption. For example, it is more viable to generate hydrogen in Quebec, while places may lean toward an electric or CNG vehicle.
In one instance, a company set up a CNG refilling station accessible to the public. After a while, other carriers’ trucks were seen utilizing the facility, he said.
Cabanetos suggested that a pilot project is a great way to test partners and the ecosystem. Feedback from drivers and mechanics also helps propel future strategy.
Mainville told attendees that there is no short-term return on investment but promised it would come in about 10 years.
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