Companies are embracing policy shifts aimed at cleaner, greener operations, spurred by initiatives like the Californian Advanced Clean Fleets and the National Zero-Emission Freight Corridor Strategy.
A key recurring conversation we have seen this month, at various roundtables and discussion panels, is around the Californian Advanced Clean Fleets (ACF). To recap the ACF focuses on phasing out medium- and heavy-duty (MDHD) internal combustion engine (ICE) trucks and transitioning to zero-emission vehicles by 2045. It appears that high-priority fleets (>50 trucks + and/or $50m+ annual revenues), drayage truck fleets and public fleets will be impacted first and must start considering swapping out ICE vehicles for EVs and/or start introducing EVs into their fleet. Since the start of 2024, any new MDHD vehicle purchased by fleet operators must be ZEVs. Furthermore, any ICE vehicles that have been in use for 13 years, travelled more than 800,000 miles or are more than 18 years old, must be retired. HVIP funding could potentially help facilitate this transition however for fleets 50+ in size, the HVIP deadline is 31/12/24 and next year HVIP incentives focus on fleets of less than 50 vehicles.
McKinstry, a national construction and energy services company, has released a case study that highlights the positives and some pitfalls of deploying 10 EVs into its 625-strong fleet. Adoption of EVs was fairly easy and their drivers found the experience enjoyable which helped eliminate concerns over range anxiety and using new technology. The lack of charging infrastructure was an issue, which the company resolved by installing home chargers for the drivers participating in the case study. Interestingly, going forward McKinstry will work with Holman to create solutions that will reimburse drivers for energy consumption from home charging. This is a pragmatic solution, whilst the public EV charging infrastructure is being fleshed out by the public and private sectors.
Governor Kathy Hochul, New York City Mayor Eric Adams and the Port Authority of New York and New Jersey (PANYNJ) have underlined their support for the new Midtown Manhattan Bus Terminal project by committing c$2bn to help with project costs. The project is expected to cost c$10bn however New York has committed 40 years of tax revenue which equates to c$2bn. This will be a massive project, as it replaces and expands on the existing 73-year-old terminal and is pencilled in to be completed by 2032.
Automotive Fleet has released insightful data on how retail appetite and commercial demand differ in America. While retail (EV) inventory grows, as demand has slowed, commercial demand by fleet operators is outpacing supply. Automotive has broken out demand by segments within the fleet sector, taking into account macroeconomic factors/trends. For example, (high) demand for cargo vans and vehicles class 6-8 is outpacing supply currently. The surge in demand for cargo vans, last year, led to Ford adding more shifts to its Kansas facility to increase production to meet said demand. It is important to highlight that improving supply chains has helped normalise RVs (to an extent). Furthermore, in 2022/2023 there was a shortage of skilled automotive labour (such as technicians), this is starting to change slightly, as completion of postsecondary degrees in the automotive sector increased for the first time in a decade.
One of the key talking points at the 2024 Work Truck Week was centred around the use and benefits of telematics. Dave Prusinski, Ford Pro general manager, highlighted how telematics have the ability to automate the maintenance-alert-to-remediation process, which is vital for uptime. Telematics has helped Ford Pro customers streamline servicing, as the vehicle generates a diagnostic trouble code which is then sent to the Ford’s service dealership network which will be alerted the vehicle is coming. Del Underwood, VP of HomeTown Services, spoke about how advantageous telematics can be in scheduling preventive maintenance, as it can give visibility into diagnostics and vehicle health, resulting in cost savings, minimising downtime, and maximising uptime and potentially a better RV.
Nissan has announced that its new Ariya model is on sale, starting at $39,590, which is $3,600 less than its 2023 version, with other trim levels getting price cuts of up to $6,000. The rationale is to keep Nissan competitive and relevant to a wider audience. The Ariya has an impressive driving range of c304 miles with either a 63-kWh standard range battery (exclusive to Ariya Engage) or an 87-kWh long-range battery, with output ratings ranging from 214 to 389 horsepower. Furthermore, from 2025, Nissan Ariya drivers will be able to access the Tesla Supercharger network.
EH2 has announced it has successfully unlocked a $18.3m tax credit, from the Inflation Redaction Act, for its 1.2GW PEM electrolyser factory. The credit stems from the 48C (Qualifying Advanced Energy Project Credit) program which was originally established by the American Recovery and Reinvestment Act of 2009 and expanded with a $10bn investment under the IRA. This factory will be built in Massachusetts, to deliver fully integrated 100MW electrolyser plants to produce the lowest cost green hydrogen on Earth.
Pajarito Powder, a USA-based developer and manufacturer of advanced catalysts, has been awarded $20m in funding by the US Department of Energy. This funding is for 2 projects that will focus on boosting production and helping reduce catalyst and fuel cell costs. Pajarito will collaborate with Auris Noble and Nel Hydrogen to develop an increased supply of catalysts designed to reduce the amount of iridium needed for proton exchange membrane electrolysis. This should result in reducing the amount needed in green hydrogen production by 14-60%. Concerning fuel cells, Pajarito is planning to scale up production of carbon supports and platinum alloy catalysts and reduce carbon-supported catalyst costs. This is anticipated to result in low-cost, commercial deployment of fuel cells, alongside improved fuel cell performance.
Price data from Cox Automotive and Kelley Blue Book indicates the average price paid for an EV in February was $52,314, down from a revised $54,863 in January. The main factors for driving down the price include high inventory levels and increased competition. Arguably the greatest pushback by (American) consumers for adopting EVs is the price point, however, it appears the market is slowly addressing this.
The Biden-Harris Administration announced its National Zero-Emission Freight Corridor Strategy which focuses on medium- and heavy-duty truck charging and hydrogen fuelling investments until 2040. This plan was created by The Joint Office of Transportation and Energy (created as part of the Bipartisan Infrastructure Law) to encourage clean commerce, as medium- and heavy-duty vehicles (MHDV) account for 21% of transportation-related greenhouse gas emissions. This 4 phase strategy maps interstates, intermodal hubs, ports, and truck parking to show where the charging and fuelling stations will be most in demand. CALSTART has applauded this strategy as it aligns the Phasing in U.S. Charging Infrastructure.
Zeti News: Jon Stafford selected to speak at Fleet Electrification US
Jon Stafford, Zeti's Senior VP of North American Sales has been selected to speak at 4th annual Fleet Electrification US in Washington D.C. The 2-day event runs from April 9-10 and promises to highlight emerging opportunities, explore innovative technologies, and discuss strategies for successfully advancing fleet electrification.