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Fleet decarbonisation for local authorities

Fleet decarbonisation is an important part of achieving Net Zero targets. This guide highlights best practice and some of the pitfalls of fleet decarbonisation

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Provided by: Net Zero Go

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Fleet decarbonisation is an important part of achieving Net Zero targets. This guide highlights best practice and some of the pitfalls of fleet decarbonisation.

Develop your organisation strategy

A fleet decarbonisation strategy is a comprehensive overview of the approach, benefits and outcomes of reducing or eliminating the carbon emissions produced by a fleet of vehicles.

A strategy needs to have buy-in from decision makers before progressing to the detailed planning stage. Having a strategy that is signed off by decision makers will support changes and allow budgets to be assigned. It will need to be aligned with other policies and strategies within the organisation.

A fleet strategy needs to consider the case for change and the wider potential benefits of a low carbon fleet.

Benefits of fleet decarbonisation

Decarbonising fleets have a range of benefits and co-benefits that should be considered during business case development.

BenefitSummaryDetail
FinancialProvide cost neutral low carbon alternativeOpportunities to upgrade to low carbon alternatives for marginal differences to current costs can be provided through local energy projects.
Health and WellbeingReduce air pollutionCreating cleaner air lead to a number of health benefits as well as increasing the quality of life of people in the local area.
Health and WellbeingReduce noise pollutionHigh levels of noise can lead to stress and mental health issues. Lowering the noise level in an area can have positive benefits
NetzeroIncrease awareness of council action towards NetZeroLocal Authorities are working hard to deliver carbon reduction plan both across their own assets and also in their communities. Increasing awareness of activities and successes can be important part of creating confidence and momentum towards Netzero in a local area.
NetzeroReduce carbon emissionsReducing carbon emissions from all parts of transport, business and homes is the primary way of achieving Netzero. Reduction may be through active changes to energy supply, generation or demand management

Considerations

  • Have you declared a climate emergency
  • What are the targets in your climate action plan
  • Are you looking to lease or buy vehicles. is your strategy to cover all fleet or just some.
  • Will any charging infrastructure be limited to fleet use, or be available or staff and public
  • Has the strategy been developed with the fleet managers to ensure that any targets are achievable
  • Are there other drivers such as ULEZ zones that will come into force in the future that will need to be complied with.
  • Are you able to be flexible with assets and depot locations
  • Is the fleet manager ready to manage a major change programme

Build your fleet transition plan

The fleet transition plan provides a structured roadmap for transitioning an existing fleet of vehicles to low carbon alternatives.

Considerations

  • Review fleet for usage and potential conversion to low carbon equivalents
  • Review existing available models and fuels in the market
  • Review options for transitional fuels and alternatives to a full electric fleet
  • Pilot new vehicles with a small amount to understand how to implement effectively
  • Understand required infrastructure for full roll out
  • Engage with DNO where required
  • Procure vehicles and infrastructure
  • Begin operations with new fleet

Fuel options

HVO fuel is a paraffinic diesel fuel which is available in the UK and offers a significant reduction in net greenhouse gas emissions.

It is a direct replacement for diesel with no conversion required. It can be mixed and stored with standard diesel fuel and has lower particulates than diesel. However, it is 10-15% more expensive than diesel and usage can void manufacturer’s warranty although many manufacturers are now accepting HVO from good quality sources.

Risks

  • More expensive than standard diesel or gas to liquid fuels
  • Uses of poor quality HVO sources may cause damage and void vehicle warranties

GTL (gas-to-liquids) Fuel is an alternative to conventional diesel derived from natural gas, which burns more cleanly than conventional crude oil-based diesel for fewer harmful local emissions.

It is a direct replacement for diesel with no conversion required. It can be mixed and stored with standard diesel fuel and has lower particulates than diesel. It brings a slight reduction in efficiency and Well to wheel CO2 emissions can be higher. It has lower particulates than diesel. Due to its low particulate it can lead to very clean diesel particulate filters (DPF), which can lead to lower maintenance costs. Purchase of fuel is a minimal extra cost over diesel.

Risks

  • It can shrink rubber O rings in older engines due to chemical incompatibility, whereas elastomer use with traditional fuels causes seals to swell increasing the seal effectiveness GTL can cause them to shrink.

Hybrid and plugin hybrid vehicles allow a small electric powertrain to be augmented with a fossil fuel engine. This can alleviate some range anxiety although the range of vehicle types is low and tend to be petrol driven. 

Risks

  • Petrol only vehicles may not mesh with the fleet fuels. Most fleets have diesel as the primary fuel type

Hydrogen cars, or hydrogen fuel cell electric vehicles (often shortened to FCEV), are vehicles powered by hydrogen fuel. Hydrogen is stored in a tank at 700 bar, which generates high-voltage electricity to a small buffer battery which provides transient power for acceleration. Cars draw their power from a fuel cell stack, where oxygen and hydrogen react to generate electricity, sending energy to an electric motor. Hydrogen cars produce zero tailpipe emissions, but the majority of current available hydrogen is sourced from natural gas and using grid power to extract and store it, making it far from a zero carbon mobility source 

There are some manufacturers providing low numbers of hydrogen fuel cell commercial vehicles and the fuel may have some niche uses where electric vehicles are unable to fulfil the service. The fuelling infrastructure is not well supported and hydrogen storage on small sites is not a solved problem. 

Risks

  • Fuelling infrastructure is not readily available
  • Source is unlikely to be low or zero carbon
  • Few vehicles available

Summary of fuel options

Business models

In deciding how to deliver your fleet decarbonisation you will need to understand how the business model will work, this is different to and informs the business case. The business case gives information to decision makers while the business model explores how all the components and elements fit together to create a robust business case.

Considerations

Outright purchase or lease
  • Depends on organisation’s financing position and appetite for risk
  • Lease can be more flexible and spread costs
  • Owning can use capital funds and reduce revenue (operating) costs
  • End of life (sale of asset) needs to be considered
Supply chain Dependencies
  • Is grid going to be net zero in timeframe?
  • Is there enough grid capacity at the right price point?
  • What is fuel pricing (HVO, GTL, Hydrogen) going to do over time.
  • Are Long term contracts available?
  • What happens with disrupted supply chains (e.g. HVO vs food production) ?
Supporting assets
  • Do you have existing solar PV (or potential) assets that can.
  • Consider battery storage, anaerobic digestion and load modulation
  • Are you using centralised or distributed charging (eg at home)
  • Can you build public assets (eg charging infrastructure alongside fleet requirements)

Business model options

In order to deliver on specific projects to achieve their EVI Strategy, local authorities (LAs) may choose to procure Electric Vehicle Infrastructure (EVI).

One of the key decisions that must be made in the procurement process is selecting an appropriate commercial arrangement. This is the division of investments, ownership, risk, and responsibilities for between the LA and a service provider.

Note: Other documents refer to this as operating models, procurement options, ownership options or ownership models. 

The LEVI Procurement Forum has identified four common and successful arrangements in-use in the market:

The Business models in this section have been taken from National EV Insight & Support (NEVIS) commercial arrangements.

Derived from https://nevis.cenex.co.uk/repository/commercial-arrangements


Vehicle options

In order to get the optimal vehicle solution for each service you may need to review the usage of the entire fleet. The best way of getting the data for this is to implement telematics within your fleet. If you are retaining some diesel vehicles through use of HVO or GTL then some of the following items may not apply.

Data requirements

Telematics is a method of monitoring cars, trucks, equipment and other assets by using GPS technology and on-board diagnostics (OBD) to plot the asset’s movements and record the usage profiles . This is also known as fleet tracking or GPS vehicle tracking, telematics is an essential management tool for fleets.

The data will help understand the usage profile that new fleet vehicles will need to fulfil. 

Review market for available models to meet service requirements

The next step is matching available vehicles to service requirements. Unless the fleet manager is very experienced in commercial vehicle relationships it may be advantageous to go through a lease company or a specialist who can review the wide range of vehicle manufacturers and vehicles that are available. 

Some vehicles may not have direct replacements. Where this is the case, you could consider options to change the service delivery profile. eg Gritter lorries which require high levels of availablity in cold weather.

Some vehicles may provide enhancements over the existing ICE platforms. In this case review if the service profile can be adjusted to take advantage of this. e.g. some models of EV waste collection vehicles have rear or 4 wheel steering, and may be thinner which allow for access to narrower streets than existing vehicles.

Risks

  • Direct replacement vehicles may not exist

Review Case studies and talk to other local authorities about their experiences

The best way to get a greater understanding of the options and lessons is to look at case studies provided by other local authorities. Net Zero Go is collecting and sharing case studies. Some are available in this guide. 

Please share your own case studies with us to share with the wider community.

Create good relationships with manufacturers and vehicle providers 

The vehicles in your fleet have a long lifecycle, a good relationship with the vehicle provider (leaser) or vehicle manufacturer is essential to procuring, operating and maintaining the fleet over their lifetimes. 

Understand the warranties associated with the batteries in EV vehicles and full lifecycle costs

The lifecycle of an electric vehicle including resale value can be affected by the warranties on batteries in the vehicles in a way that is different to conventional ICE vehicles. Manufacturers are providing longer warranties as time goes on as the sector matures. The operational lifetime of the vehicle may be longer than the warranty offered and so the risk for reduction in range, or failure of the battery will be carried by the local authorities (or leaser if that is the model).

Current resale value of vehicle with expired warranties are very low so this needs to be include in the full lifecyle costs of ownership. 

Risks

  • Risk: Warranty does not cover full operational lifetime
  • Risk: Onward sales value is very low

Review required staff training to maintain and operate new vehicles

Maintaining electric vehicles requires a new set of qualifications. A minimal Level 3 Award in Electric/Hybrid Vehicle System Repair and Replacement is required to work on electric vehicles wtih level 4 required if you are expecting to replace or maintain batteries directly. Some vehicles may need a different maintenance schedule to conventional ICE vehicles. 

All vehicle operators will need to be upskilled to use the new vehicles in a safe and efficient way, including how to charge, drive and operate any attached machinery.

Go for the low hanging fruit first and pilot with small numbers

Getting familiar with procuring and operating electric vehicles is an important part of building a plan. 

Consider starting with a small amount of vehicles in a single location, to get used to operating, charging requirements and vehicle interoperability with services and the rest of the fleet. Ideally the pilot would not require capacity upgrades from the local distribution grid. A number of charging points and billing mechanisms could be tested, as well as developing relationship with potential suppliers.

Consider a transition plan for each type of vehicle

Some vehicles may be easier to transition given the current market and so it will be necessary to include a range of options both short term and long term in your plan.

Click the areas below to review the different transitions for different vehicles.

Gritters
Bus fleets
Light and heavy industrial vehicles
Small fleet vehicles

Infrastructure

Delivery of the infrastructure to operate a new type of vehicle can be the most difficult part of the process. Upgrading capacity in the grid and equipping depots can be expensive and subject to blockers, delays and constraints

Fully understand your depots and vehicle parking locations

Your depots and parking areas will not have been designed with new infrastructure in mind and in some cases will have been constructed many decades ago. It is possible that concrete yards, location of liquid fuel pipelines and fuel tanks and other underground services can impact the options available to you to install the capacity for charging infrastructure. Existing car parks where they are multi-storey have weight limitations that constrain vehicle types and charging infrastructure. Make sure you also have a clear understanding of the surrounding context with regards to land use and ownership, and other potential users of the local network as these can provide challenges or opportunities around upgrading network infrastructure.

Lessons

  • Get full surveys of each potential location to review underground services, potential cable route and charger locations

Risks

  • Upgrades affect local businesses negatively

Understand the service and vehicle requirements

Are the locations going to be available for public charging alongside fleet vehicles, this is common in council office car parks. This will add to the requirements for the charging pillars and billings systems.

Risks

  • Billings systems are unable to process public, staff and fleet charging regimes simultaneously

Review available data on local distribution network capacity

Engage with your local District Network Operator (DNO) at an early stage. Each DNO publishes their own EV connection guides and also has an array of web-portal based tools (including capacity maps showing ‘demand’ capacity on their network) that can support an initial consultation or meeting with the DNO. However, many of these interactive maps may not function for the power required to electrify a whole depot so it is strongly advised that a meeting is convened directly with the DNO whereby a future application for power can be directly discussed.

Risks

  • Not all DNOs are as responsive as they could be, so leave plenty of time in your programme schedules for this engagement

Look for opportunities for supporting projects and infrastructure, including strategic site review

Installing charging infrastructure is a major change programme and this kind of inflection point is often a good opportunity to review site usage and service provision. There may also be good opportunities to integrate other low carbon technologies with the charging infrastructure. 

Considerations

  • Can EV charging be combined with power generation such as solar, or with battery storage.
  • Can waste processing be used for power generation through Anaerobic Digestion (AD) or Energy from Waste (EfW)
  • Can the depot be extended or reconfigure to provide further services such as waste processing or commercial fleet storage and charging for others?
  • Does the current depot strategy meet future requirements, can the locations be upgraded. If they can will they be able to cope with future configurations and service provision. 
  • Would a new depot site be an option, which is built with a carbonised fleet in mind.
  • Are there local political constraints or opportunities in terms of upgrading sites and using local network capacity to service the local authority and local businesses, such as sharing costs for capacity upgrades or infrastructure.

Operation

Fleet operations for low carbon fleet on the whole can be very similar to a conventional fleet. There are a number of differences though.

  • Managing charging times and scheduling is very important as service operating relies of specific vehicles at specific times. Operating conditions may well have an effect also.
  • Cold weather operation can potentially reduce the operational range and charging times. 
  • Flood water can cause an issue to batteries is they become submerged, this may affect warranty considerations
  • There are some reports of insurance issues with EV fleets, so make sure all safety codes and recommendations are followed while operating, charging and storing fleet vehicle.

Operational Benefits

  • Electric vehicle have bought some unexpected benefits, such as refuse vehicle being much quieter, although in some case too quiet as residents have missed bin collections due to the silent running.
  • Operational staff can be heard and may have to recognise that cheerful banter will carry further with very quiet vehicles
  • Some types of eRCVs with rear or four wheel steer have led to reduced tire wear.

Case study

Case Study

Enfield fleet decarbonisation

Enfield fleet decarbonisation
Declaring a climate emergency In Summer 2019, Enfield Council declared a climate emergency, and stated plans to become a carbon-neutral organisation…

Provided by: Net Zero Go

Case Study

Greater Cambridge Shared Waste Service: Electric refuse collection vehicles

South Cambridgeshire District Council (SCDC) and Cambridge City Council (CCC), who jointly operate the Greater Cambridge Shared Waste Service, are embarking on a journey to fully transition their entire fleet…

Provided by: Net Zero Go

Case Study

Exeter City Council: Electric refuse collection vehicles

Exeter City Council (ECC) has ambitious plans to achieve Net Zero emissions long before 2050 and to electrify its entire 15-vehicle fleet before 2030 to allow Net Zero emissions. In…

Provided by: Net Zero Go

Case Study

Fleet Decarbonisation on islands

The decarbonisation journey of islands presents unique challenges related to supply chains and local decision making. A successful transition meets the decarbonisation targets to electrify an island’s government-owned vehicles as…

Provided by: Net Zero Go

Case Study

Fleet decarbonisation for remote places: East Riding of Yorkshire Council

Looking a little deeper into fleet decarbonisation for East Riding of Yorkshire Council (ERYC). Stretching across just under 1,000 km2 of remote pasture, the idyllic scenes of Yorkshire present unique…

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Case Study

Hackney’s decarbonised RCV journey

Hackney Council has an overarching goal of reducing greenhouse gas emissions (GHGs) by 94% in 2040 compared to 2010 and reducing GHGs by 77% in 2030. The London Borough of…

Provided by: Net Zero Go


Further resources

Find all the resources mentioned in the guide and others that may be relevant.