Trucking: Clean Fuels, Heavy Loads and Prospects for Cleaner Fuels in Freight Fleets

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Trucking has, like other parts of the American economy, taken a punch from COVID. April’s job losses in the sector – estimated at 88,000 or 5.8% of the workforce per the Bureau of Labor Statistics (BLS) – were enough to eliminate all job gains in trucking since September 2014. Total separations in the larger BLS umbrella category of Transportation, Warehousing and Utilities in March and April topped 900,000. And while BLS reported net job gains of 8,100 in trucking for June, there’s still a lot of ground to regain for the industry. Short version – from February to July, total trucking employment was down about 6%. In such uncertain times, navigating agreement to end employment becomes essential for both employers and employees to ensure a smooth transition and fair treatment.

There is good news, though, some hiding in plain sight on the calendar. As summer winds down, the pre-Christmas shipping season winds up. And as the retail rush begins, lower overall capacity means shippers have been able to boost rates. Spot dry rates have risen from around $1.35 in May to more than $2.00 in August. FTR’s Trucking Conditions Index spiked from a record low of -28.66 in April to a 11.35 in June, the highest reading in a decade. Better yet, net trailer orders in July were up 84% YOY, with 173,000 units ordered in the preceding 12 months. But the sector’s long-term issues remain – driver shortages, infrastructure, and trade friction among them. And hanging over everything is the uncertain direction of the American economy, driven by consumer sentiment, intertwined with an ongoing pandemic.

Will Fleets Still Move Forward with Clean Fuels?
In these uncertain conditions, will trucking fleets still move forward with plans for clean-fuel rollouts? We strongly suspect the answer is “yes”, for several reasons.

For starters – fuel prices. Diesel costs and driver pay have duked it out for pole position as trucking’s single biggest cost for years and recent data shows more of the same. Diesel prices rang in the new year at about $3.08, nationally averaged. EIA data shows that as the pandemic grew, prices slumped to around $2.39 during the first week of May, and crept higher as June began. These are low prices – retail diesel was about a buck higher as recently as fall 2018.

Corn Growers Help Grow Higher Ethanol Blends

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Building out the infrastructure needed for future mid-level blends of ethanol continues to be a priority of the National Corn Growers Association (NCGA), which is why they have worked with Wayne Fueling Systems over the last three years to produce and sell pumps certified for fuel containing up to 25 percent ethanol.

Thanks to this key partnership, NCGA has supported the sale of more than 50,000 new fuel pumps across the U.S., building out the infrastructure needed to support future mid-level blends of ethanol.

“This lays the groundwork for growing ethanol demand and moving the industry forward,” said NCGA Market Development Vice President Jim Bauman. “Corn farmers’ support of NCGA’s multi-year fuel pump infrastructure program supports the introduction of higher octane fuels delivered by low-carbon, affordable, corn-based ethanol.”

NCGA also recently partnered with the Renewable Fuels Association (RFA), assisting fuel retailers in applying for the United States Department of Agriculture (USDA) Higher Blends Infrastructure Incentive Program (HBIIP). The $100 million program included $86 million to expand the availability of higher blends of ethanol, like E15 and E85.

GM Signs Deal With Honda to Develop Future Products

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General Motors and Honda have a deal to share vehicle platforms and technology in North America starting next year.

On Sept. 3 the automakers said they have signed a nonbinding memorandum of understanding to establish a North American automotive alliance. The deal has come together after extensive discussions.

The proposed alliance will include sharing a range of vehicles, to be sold under each company’s distinct brands, as well as cooperation in purchasing, research and development, and connected services.

The alliance will help GM and Honda achieve substantial cost savings in developing future products.

“This alliance will help both companies accelerate investment in future mobility innovation by freeing up additional resources,” GM President Mark Reuss said in a statement. “Given our strong track record of collaboration, the companies would realize significant synergies in the development of today’s vehicle portfolio.”

In April, GM and Honda announced they have agreed to jointly develop two all-new electric vehicles for Honda. Those vehicles will be on GM’s global EV platform powered by proprietary Ultium batteries, but Honda will design the exteriors and interiors. The platform will be engineered to match the way Honda vehicles handle on the road. At the time, GM said this was “another step” toward its vision of an all-electric future.

The GM-Honda relationship, which began more than two decades ago, includes recent collaborations on fuel cells, batteries and the Cruise Origin shared autonomous vehicle.

Onboard Dynamics Launches GoFill CNG Refueling System

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Onboard Dynamics has launched the new GoFill refueling system.

GoFill is an instant dispensing unit for refueling compressed natural gas (CNG) vehicles. The new product eliminates infrastructure barriers for fleet operators who immediately need an easy CNG station setup to refuel their commercial trucks.

The first unit rolled out in Oregon as part of the NW Natural’s free truck loan program. The GoFill will be providing natural gas for refueling CNG into a Hyliion low-emission Class 8 truck for long and heavy hauls. The program provides fleet operators a short-term, no-cost demo period to experience the vehicle. The on-site, easy station setup makes fueling convenient during the demo period.

“We designed the GoFill as a companion to the GoFlo compressor to create a CNG-in-a-day solution,” says Rita Hansen, CEO of Onboard Dynamics. “We’re excited to roll out our new product for NW Natural’s truck loan program and help contribute to the adoption of natural gas vehicles.”

The versatile design makes the GoFill a temporary or permanent installation. When paired with Onboard Dynamics’ natural gas compressor, the GoFlo, an instant fueling station can be set up that doesn’t require electricity to operate. This makes rapid deployment possible in locations where infrastructure is challenging.

$3 Billion Planned for Next-Generation Hydrogen Power Plants

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Three power plants planned in New York, Virginia and Ohio will test whether hydrogen can one day replace natural gas in electric generation.

Power producers Danskammer Energy, Balico and EmberClear are paying Mitsubishi Power Americas Inc. more than $3 billion for the facilities, which will collectively generate 3,284 megawatts of electricity. While the plants will initially run on natural gas alone, they’ll eventually shift to burning green hydrogen produced and stored on-site. They’re designed to make it easier to ramp up hydrogen use as production increases, Mitsubishi Power Americas CEO Paul Browning said.

As power producers transition to using green hydrogen, it becomes essential to maintain consistent output levels to meet the growing demand for electricity. This transition necessitates robust systems that can handle fluctuations in fuel supply and energy generation, making it vital for facilities to incorporate advanced technologies that enhance reliability.

An Uninterruptible Power Supply (UPS) plays a crucial role in safeguarding against power outages and ensuring the seamless operation of essential equipment during the transition. Moreover, reliable operations directly influence the stability of the power grid and consumer confidence. Any disruption in electricity supply can have far-reaching consequences, from affecting industrial production to impacting everyday life for consumers.

Therefore, investing in infrastructure that supports both traditional and emerging energy sources, while integrating solutions like UPS systems, is paramount for power producers.

Green hydrogen — produced by stripping the gas from water using electrolyzers powered by wind and solar — is seen as key to eliminating carbon emissions from the industrial sector that now relies on natural gas as both a fuel source and a feedstock.

Other electric generators also are exploring integrating green hydrogen into their power production in an effort to slash emissions as more states set renewable-energy mandates. Utility NextEra Energy Inc. in July announced it will run one of its Florida power plants, in part, on hydrogen, using solar power to strip the gas from water.

“There is clearly an opportunity five to 10 years from now to displace the last 10% of the carbon emissions out of the electric sector by manufacturing hydrogen with renewables,” Jim Robo, NextEra’s CEO, said during an earnings call in July.

Volvo Helps Expand Options for Electric Truck Charging

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Volvo Trucks North America took a step toward the widespread usage of electric trucks by expanding charging options, the company announced Aug. 26.

The Combined Charging System CCS2 connector was designed around the unique needs of medium- and heavy-duty electric trucks. The Volvo LIGHTS project and its partners secured a safety certification for the system, which means more charging options for fleet operators.

“There is a great deal of enthusiasm and interest from the prospective customers that are saying, how do I get started?” Keith Brandis, vice president of partnerships and strategic solutions at Volvo Group, told Transport Topics. “Officially we have not made our commercial launch. That’s going to happen later.”

Volvo LIGHTS is a collaboration among different organizations to develop a blueprint to successfully introduce battery-electric trucks and equipment into the market at scale. REMA EV Connections manufactures the charging system and is one of the partners on the project.

The Underwriters Laboratories verified that the charging system meets North American safety standards. This certification enables fleet operators to purchase the system directly from suppliers such as Volvo LIGHTS vendor ABB.

Lion Electric Gets 50-Truck Order From CN Rail

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The announcement of the CN purchase of 50 Class 8 trucks is the first time Lion Electric has presented a tractor configuration.

The Lion Electric Co. has signed a Memorandum of Understanding with CN Rail to acquire 50 zero-emission battery-electric drayage tractors. CN says it will place the trucks into last-mile urban service in the Canadian cities of Montreal, Toronto, and Vancouver.

In April of 2019, CN launched a pilot program to test the use of custom-built electric trucks engineered by Quebec-based The Lion Electric Co. These zero-emission trucks, slated for intermodal use, will be tested in a variety of situations and environments across the CN network, from urban delivery and container shuttle service, to port operations. Lion Electric says the trucks will remove 100 tons of greenhouse gas emissions from the road annually.

Mercedes-Benz to Deliver 1,800 EVs to Amazon Fleet

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Amazon says it is adding more than 1,800 electric vehicles (EVs) from Mercedes-Benz Vans to its delivery fleet in Europe this year. Mercedes-Benz also has joined The Climate Pledge, which calls on signatories to be net-zero carbon across their businesses by 2040 – a decade ahead of the Paris Agreement goal of 2050.

“At Mercedes-Benz, we have set ourselves the ambitious target to make the transformation of mobility a success story. By joining The Climate Pledge, we are building on our goal to consistently pursue emission-free mobility and sustainable vehicle production,” says Ola Källenius, chairman of the board of management of Daimler AG and Mercedes-Benz AG.

“We stand with Amazon, Global Optimism and the other signatories of The Climate Pledge, in a commitment to being net-zero carbon by 2040 – 10 years ahead of The Paris Agreement. I am pleased that we will be able to gain even more momentum on our sustainability offensive with this step,” Källenius adds.

DOE Awards SoCalGas Funding to Advance Clean Automotive Transportation

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Southern California Gas Co. (SoCalGas) says the U.S. Department of Energy (DOE) has awarded over $7.1 million in funding to three projects advancing clean automotive transportation technologies supported by the utility.

SoCalGas’ Research, Development & Demonstration department will provide $730,000 in additional funding for the projects, which are led by Cummins Inc., GTI and West Virginia University Research Corp. The projects will advance fuel cell technology for on-road trucking and transit, near-zero-emissions natural gas technology for rail locomotives and best practices to reduce maintenance costs for alternative fuel vehicles.

“SoCalGas is committed to being an integral part of California’s energy future, and as we work on achieving our goal to be the cleanest gas utility in North America, supporting the research and development of clean transportation technologies is key,” says Yuri Freedman, senior director of business development at SoCalGas.

DOE: US biodiesel production at 1.9 billion gallons in 2018

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The U.S. Department of Energy published data on Aug. 24 showing that 1.9 billion gallons of biodiesel was produced in the U.S. in 2018. Facilities producing the fuel were located across 34 states.

Iowa was the top producer of U.S. biodiesel in 2018, with 365 million gallons, followed by Texas with 227 million gallons and Missouri with 216 million gallons.

The data used by the DOE was sourced form the U.S. Energy Information Administration’s State Energy Data System (SEDS): 1960-2018, published in June 2020.