HGV Pathway - Zero Emission Truck Taskforce - Energy Infrastructure groups - Meeting notes

Initial discussion suggested that while the issues under discussion are similar, the energy stakeholders for electricity and hydrogen were very different. Energy infrastructure was therefore handled through two working groups, with information being shared between the two groups throughout. Many of the actions identified are shared actions, and will be delivered with dual strands to cover both electricity and hydrogen stakeholders.

Electricity Working Group

Areas of discussion

Expanding on the barriers and issues explored by the full Taskforce, the group considered in depth:

  • How to determine where the infrastructure will be required
  • The extent of HGV energy demand modelling already done by DNOs and length of time required to secure a grid connection
  • Costs related to installing the charging infrastructure and emerging models which enable depot transition/ providing of en route charging
  • Learning curve required to engage with a complex and highly regulated electricity sector, including developing a shared terminology between fleet operators and DNOs.

Key learning

  • Several well financed companies are already offering electricity infrastructure services for HGVs, including models where the operator pays either a monthly fee or a cost per kilowatt used, and all installation, operation, negotiation with the Grid etc is done by the third party. These models can be applied to depots or en route charging.
  • Some OEMs are also offering depot charging services through partners and three major OEMs have formed Milence, which focuses on en route mega-charging. The UK is included in Milence’s plans although not currently in the first tranche.
  • Commercial investors are well engaged with HGV charging.
  • The largest barrier pertains to the time and difficulty in securing necessary grid connections/ capacity. If operators do this themselves, a substantial learning curve is required.
  • Energy costs can be reduced by load management software, good advance planning and onsite generation/ batteries. These also increase resilience.
  • It is expected that the majority of charging will take place at depots but some en route and destination charging (eg factories, warehouses) will also be required.
  • DNOs and operators need to work closely together to better understand one another and forecast future demand. There is appetite for this on both sides.

Participating organisations

  • Logistics UK (Chair)
  • British Vehicle Rental and Leasing Association (co-chair)
  • Zenobe
  • GridServe
  • Fleete
  • SSEN
  • SPEN
  • Volvo
  • Truck Infrastructure Group
  • Co-Op
  • DHL
  • SESTRANS
  • Road Haulage Association
  • Society of Motor Manufacturers & Traders

Methodology

Three meetings took place, the first establishing consensus on the areas for action; the second exploring the infrastructure required to create provide sufficient charging and the information needing to be shared; and the third focussed upon discussing emerging business models and growing the sector’s confidence. To support the discussions Gridserve, Fleete and Zenobe all provided an overview of their business models for the group and SMMT gave a presentation on their depot mapping work, in addition to detailed pre-reading on electricity networks and analysis of future HGV charging trends at depots and enroute. Draft actions were formulated as a result of the information captured in the working group discussions commented on via email.

Hydrogen working group

Areas of discussion

  • Expanding on the barriers and issues explored by the full Taskforce, the group considered in depth:
  • The need for stakeholders (e.g. H2 producers, distributors, OEMs) to understand demand profile for hydrogen trucks/refuelling and what action is needed to implement. Vehicles are for the most part still in development, the market is not as advanced as BEV.
  • The need for commercial finance to be engaged and confident to invest in hydrogen vehicles, recognising that the cost of hydrogen and the cost of vehicles are currently barriers. 
  • Operators need to understand the landscape and who is ready to work with them on transitioning their fleet. 
  • Existing regulations and the planning system must be fit for purpose to enable a swift and safe transition to hydrogen trucks and communities seek reassurance on safety.

Key learning

  • Hydrogen distributers display confidence that they can provide hydrogen as required and confirm that investment is sufficiently available to them.
  • Commercial models to draw in investment for hydrogen vehicles have not yet developed.
  • When discussing hydrogen operations reaching cost parity, the comparator should be with BEV costs, not diesel.
  • Coordination is required across the value chain from hydrogen producers to end users to ensure hydrogen deployments are close to where they are needed and that business cases for production and usage develop in tandem.
  • Some Regional Transport Partnerships and Local Authorities recognise the importance of hydrogen for economic growth in their areas and are keen to engage with HGV decarbonisation.
  • A change in business model may be required so that the vehicle owner commits for the full lifespan of the vehicle rather than 4-5 years (as with diesel). Shorter ownership periods are not cost effective and the long term asset value is unknown at this stage.

Not developed enough to feature in the draft Pathway yet but under consideration

  • Potentially an action to support the development of new business models related to hydrogen infrastructure/vehicles.
  • Potentially an action related to supporting the planning process.
  • How the sector can best coordinate for mutual success.

Participating organisations

  • Scottish Power (chair)
  • Hydrogen Vehicle Systems
  • SESTRANS
  • TACTRANS
  • Element2
  • Motive Fuels
  • Hydrogen Accelerator
  • Electra Trucks

Methodology

After initial engagement with hydrogen producers, two meetings took place, the first establishing consensus on the areas for action, understanding the current hydrogen landscape and commercial financing; the second exploring success factors for successful projects based on two funded projects and developing areas for action. Draft actions have been created as a result of the information captured in the working group discussions but due to unavoidable delay in convening the second meeting, the working group has not yet reviewed the indicative actions.

Back to top

Published Date 19 Mar 2024 Type Topic