Alternative and renewable fuels for fleets

There are certain renewable fuels that can achieve immediate carbon savings, and act as a short term solution until viable zero-emission options are mass market. So what are they? And what's happening with hydrogen and electric powered trucks too?

Despite the government saying it will launch a consultation on the ZEV mandate, which requires vehicle manufacturers to sell a growing percentage of electric vehicles, it has said it will not change the 2035 date to end the production of petrol and diesel cars and vans. Instead, the consultation is to find ways to support the industry with more options to avoid paying fines.

For heavy goods vehicles, the government has targets to phase out new, non-zero emission heavy goods vehicles weighing 26 tonnes and under by 2035, with all new HGVs sold in the UK to be zero emission by 2040.

Decarbonising heavier vehicles poses more of a challenge, given their size and
weight. With many having to operate on long journeys, the range and time charging creates an issue which can potentially harm the freight and logistics industry, on which the country depends.

New electric trucks are expensive too, meaning they are cost prohibitive to many.

There is a handful of zero emission trucks on the market, and a growing number of fleet operators using them. But it is no where near the scale that it needs to be. While these challenges are being ironed out, the pressing issue of climate change continues.

At the recent Zemo Partnership Summit, Claire Haigh pointed out that it will be “decades” for all ICE vehicles to become electric, adding that renewable fuels will be needed in the meantime for an immediate reduction in emissions.

There are certain renewable fuels that can achieve immediate carbon savings, and act as a short term solution until viable zero-emission options are mass market.

Here we investigate what renewable and alternative fuels there are on the market, as well as the fleets that are using them.

Hydrotreated vegetable oil

Hydrotreated vegetable oil (HV0) is a drop-in alternative to diesel that is made from renewable raw materials and sustainable waste from verified vegetable fats and oils.

HVO supplier Certas Energy define HVO as being a “paraffinic fuel, with near-zero sulphur and very low aromatics content”. Compared to standard diesel, it produces less regulated emissions of toxic hydrocarbons, nitrous oxides
(NOx) and particulate matter (PM), which are all harmful to human health and the environment.

Crucially, fuel-related emissions can be cut by up to 90 per cent compared to standard diesel. What’s more, it can be used with no engine modifications needed. Because of this, HVO is proving popular with fleet operators.

Royal Mail introduced HVO to its HGV fleet in June 2023 and is being used at six of its largest sites, including both parcel hubs in Daventry and Warrington and key sites in the East Midlands, Manchester, Sheffield and Warrington.

In May 2024, Royal Mail celebrated its first milestone of using 10 million litres
the fuel, saving the equivalent of 30,000 tonnes of carbon dioxide (CO2).

The company aims to deploy 27 million litres of HVO annually across its network by this time next year, saving a further 44,000 tonnes of carbon dioxide.

Zebrina Hanly, Royal Mail’s head of environment, said: “It’s of critical importance to our customers that we do everything we can to reduce our emissions as soon as possible.

“Electric and hydrogen options for HGVs are still in their infancy, so whilst the technology and infrastructure are developing, our strategy is to keep emissions to a minimum by using HVO as a transitional fuel.”

Biomethane

Renewable biomethane is a compressed natural gas that is a low-carbon alternative to diesel for HGVs, reducing carbon emissions by up to 90 per cent.

CNG Fuels, who operates the UK’s largest CNG refuelling network, sources its biomethane from waste products including food, animal, and waste water, and it is independently verified and approved by the Department for Transport’s Renewable Transport Fuel Obligation (RTFO). The company claims up to a 40 per cent lifetime fuel cost saving when switching from diesel to bio-CNG.

Major fleet operators are using bio-CNG, such as John Lewis Partnership, Waitrose, Royal Mail, Warburtons, Aldi, AO, Farm Foods, Hermes and Wessex Water, are using bio-CNG to help reach their transport decarbonisation goals.

John Lewis Partnership took delivery of its first dedicated CNG trucks in 2015 and now operates 400 CNG trucks. It is committed to all of its 520 heavy-duty trucks running on biomethane by 2028.

Meanwhile, electrical retailer AO is transitioning its fleet of tractor units from
diesel to CNG, with a goal to have 90 per cent of its vehicles running on CNG by 2030.

AO originally purchased 10 CNG tractor units in 2022 and this year has now brought 10 more into its fleet. The company says the switch will enable a reduction of up to 85 per cent in CO2 emissions, compared to the existing diesel fleet.

AO has also acquired 20 longer moving deck double deck semi-trailers (LSTs) which are 2.05 metres longer than the standard trailers used by AO, allowing for a 10 per cent increase in capacity.

Parcel delivery firm also Evri uses a Bio-CNG fleet as an alternative to diesel. Last year it added 30 new Bio-CNG tractor units, bringing the total to 190 – 53 per cent ofits core HGV fleet.

Hydrogen

Hydrogen has long been touted as the answer to zero emission heavy goods vehicles. Refuelling is quick and ranges are comparable to ICE trucks. Hydrogen fuel cell vehicles emit only vapor, meaning they release no harmful emissions. However, as of December 2023, there are only 16 operational hydrogen fuel stations in the UK.

Hydrogen fuelled trucks are also expensive, and there are only a small number available. However, there is a project to roll out 30 hydrogen fuel cell HGVs UK roads by 2026 as part of the government’s Hydrogen Aggregated UK Logistics (HyHaul) project.

Wales & West Utilities has recently completed a month-long trail of hydrogen fuel cell vans with First Hydrogen to evaluate the potential of hydrogen for its commercial fleet.

Due to the lack of hydrogen vehicle refuelling infrastructure, the project was
supported by Protium Green Solutions and Hyppo Hydrogen Solutions to create a hydrogen eco-system. Green hydrogen was produced at Protium’s Pioneer 1 site in Baglan via electrolysis and renewable power, meaning that there are no emissions produced as part of the process.

The trial van completed more than 2,000km over the four-week trial, travelling up to 189km per day on mostly urban roads and highways. Data collected showed that the vehicle has the potential to fulfil more demanding duties,
like carrying heavier payloads, driving over hilly terrain or powering auxiliary equipment. Moreover, it was thumbs-up from the WWU team with feedback agreeing that FCEVs could help fulfil operational demands in future.

Electric HGVs

The number of electric trucks in the UK is growing, but they still make up a small fraction of the total number of trucks on the road. In June 2024, The Road Haulage Association (RHA) reported that there were only 300 electric
HGVs in the UK’s 500,000-strong lorry fleet. Last year, the government announced £200 million to roll out demonstrator programmes that would see 370 zero emission trucks put on the roads, as well as 57 refuelling and electric charging sites. Fleet appetite for electric trucks is growing. One example is B&Q, who has recently taken on two electric HGVs, with a third arriving in early 2025. They will be integrated into B&Q’s home delivery fleet, with plans to add smaller electric vans for more local deliveries in the new year. The transition will support B&Q’s broader mission to achieve net zero
for Scope 1 and 2 emissions by 2040.

Amélie Gallichan-Todd, B&Q Supply & Logistics Director, commented: “We’re working hardto improve our fulfilment services to give our customers more choice of when and how their B&Q purchases are delivered. Our aim is to give customers more choice of speed and location whilst, at the same time, fulfilling our commitment to reduce our impact on the environment, and the introduction of these electric trucks into our fleet is another step towards our transition to alternative fuels.”

In 2023, Evri successfully trialled two electric HGVs to reduce emissions in the first and middle mile, which the company says is the toughest part of the journey to decarbonise due to range limitation. Last October the company ordered a DAF XB eHGV, with a range of up to 217 miles. It can go from a 20
per cent to 80 per cent charge in under 70 minutes and was operational ahead of peak.

A zero emission future

Transport is the largest emitting sector of greenhouse gas (GHG) emissions. With the government aiming to meet net zero by 2050, there must be a speedy transition to zero emission vehicles. But until they are viable for all business sizes and operations, renewable fuels should be encourage for an immediate drop in emissions