Early adopters see great potential in Nikola hydrogen-electric truck

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The first announcement of the Nikola Motor hydrogen-electric truck brought out a heavy-hitter when it came to an initial fleet interested in trying this new tractor design. U.S. Xpress Enterprises (NYSE: USX) committed early to testing the vehicle. Many of the first images of the truck featured U.S. Xpress on the side.

“There’s an intersect here in the next five or six years where battery technology may overtake diesel [in operational cost],” Max Fuller, USX chairman, told FreightWaves in 2017. He explained that the Nikola One truck could represent a 30 percent to 50 percent cost reduction per truck for his fleet. “[Nikola’s] providing the fuel, so I have a fixed cost, whereas the price of diesel is volatile. The incentive is to get out of the whole diesel volatility cycle. It really is something we can’t control but it impacts our bottom line greatly.”

Nikola Motor is promising to provide 1 million miles of hydrogen fuel, plus maintenance, tires and some ancillary items such as truck washes as part of a monthly lease program. Fleets and owner-operators can also choose to purchase the truck and those items will still be covered, said Trevor Milton, Nikola Motor’s founder & CEO, at the time.

Nikola Rolls Out Trucks for Zero-Emissions Future

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Nikola Motor Co. CEO Trevor Milton, 28 months after unveiling a prototype Class 8 sleeper, presented to about 2,000 attendees and a global audience watching online two heavy-duty trucks and three other specialty vehicles he said are ready to spark a zero-emissions future.

The heavy-duty trucks that drove out from behind the curtains one at a time, amid swirling lights and loud music as people put their cellphones on video, were the stars of the event.

As a bright red Nikola Two day cab took center stage, Milton said, “This is a real truck. This is a real [hydrogen] fuel cell,” seeming to speak to those who doubted the emerging truck maker would ever get this far.

Nikola introduced a hydrogen fuel cell Class 8 prototype Dec. 1, 2016, in Salt Lake City, its former headquarters. It is now based in Phoenix.

The day after the presentations here, Nikola offered the public a first look at the trucks as well as two zero-emissions power sport vehicles and another one designed for special forces operations, which included the ability to be operated remotely like a drone.

“We want to transform everything about the transportation industry. With Nikola’s vision, the world will be cleaner, safer and healthier,” Milton said.

Natural Gas Groups Quantify Environmental Impact of RNG Surge

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During calendar year 2018, 32% of all on-road fuel used in natural gas vehicles was renewable natural gas (RNG), according to a new report from Natural Gas Vehicles for America (NGVAmerica) and the Coalition for Renewable Natural Gas (RNG Coalition).

Captured above ground from organic material in agricultural, wastewater, landfill or food waste, RNG – or biomethane – produces net-carbon-neutral and even net-carbon-negative results when fueling on-road vehicles. According to the groups, which cite the California Air Resources Board, RNG fuel in 2018 had an Energy Economy Ratio (EER)-adjusted carbon intensity as low as -303.30. By comparison, California’s electricity grid rated between 25.0 and 38.95.

Over the last five years, RNG use as a transportation fuel has increased 577%, displacing over 7 million tons of carbon dioxide equivalent (CO2e), according to the report.

GGE = gasoline gallon equivalent. EGE= ethanol gallon equivalent. EGE units are converted to GGE using a 0.67 multiplier (77,000 Btu/115,000 Btu). (Source: NGVAmerica, RNG Coalition)NGVAmerica and the RNG Coalition add that in 2018, a total of 645 million gasoline gallon equivalents (GGEs) of natural gas were used as a motor fuel; of that, more than 204 million GGEs were renewable.

“Proven and affordable natural gas vehicle technology is over 90 percent cleaner than federal EPA nitrogen oxide emission standards,” says Dan Gage, president of NGVAmerica. “And when those American-made heavy-duty trucks and buses are fueled with renewable natural gas, they are up to 125 percent cleaner than the cleanest diesel technology in terms of carbon emissions. RNG-fueled vehicles are the most immediate and cost-effective heavy-duty option when seeking to combat climate change.”

According to the report, RNG motor fuel use has eliminated 7,251,351 metric tons of CO2e over the last five years. The groups lay out the following numbers to put that figure in perspective:

  • Lowered greenhouse-gas (GHG) emissions equivalent to removing 1,539,565 gasoline passenger cars from the roads for one year;
  • Reduced CO2 emissions equivalent to 815,950,377 gallons of gasoline or 712,313,458gallons of diesel consumed. That’s equal to the total energy used by 868,321 U.S. homes for one year;
  • Avoided GHG emissions equivalent to running 1,537 wind turbines for one year or replacing 275,434,003 traditional light bulbs with LEDs; and
  • Sequestered carbon equal to growing 119,902,624 tree seedlings for 10 years or 8,534,274 acres of U.S. forests for one year.

Proterra’s New Battery Lease Program Aims to Cut Upfront Cost of Electric Buses

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Proterra, a U.S.-based provider of heavy-duty electric transportation, has announced a new partnership with Mitsui & Co. Ltd., a Japanese investment and trading company, to create a $200 million credit facility in support of a battery lease program.

Mitsui currently holds a diversified portfolio of businesses in various sectors, including mobility, infrastructure and renewable energy similar to the one featured on Smarterbusiness.co.uk. The battery leasing credit facility, expected to lower the upfront costs of Proterra’s electric buses, is the first of its kind in the North American public transit industry, claims Proterra.

By decoupling the batteries from the sale of its buses, Proterra enables transit customers to purchase an electric bus and lease the batteries over the 12-year lifetime of the vehicle. As a result, the initial capital expense for the electric bus is expected to be similar to that of a diesel or compressed natural gas bus, and customers can use the operating funds previously earmarked for fuel to pay for the battery lease, says Proterra. The lease agreement also provides a performance warranty, as well as new batteries at mid-life. Seeking insolvency advice can be beneficial for businesses looking to navigate financial challenges and ensure sustainable operations.

“We’re seeing innovation both in technology and in businesses around the mobility sector. We are pleased to take an initiative to support the transit industry alongside Proterra as the company expands its battery lease program to enable the rapid adoption and a broader commercialization of its electric buses,” comments Yosuke Matsumoto, general manager of new business and innovation division at Mitsui. “There is a unique opportunity for markets to provide the necessary capital to accelerate the imminent transition to 100 percent battery-electric bus fleets and reduce carbon emissions.”

In addition, Proterra and Mitsui have established a program to use batteries from the leasing program in secondary applications after the end of their useful life in a vehicle.

“This first-of-its-kind credit facility for public transportation marks a significant development in our evolution to make innovative heavy-duty electric vehicle technology accessible through innovative financing models,” notes Proterra’s CEO, Ryan Popple. “Mitsui’s continued support as a trusted partner for this facility will serve as a foundation for the Proterra battery lease program to expand and allow transit agencies across North America to bring clean, quiet transportation to their communities.”

Volvo Presents the Future of Sustainable Transport Solutions

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Sustainability initiatives are rapidly changing the transportation industry, with increased focus on major technological advancements to create these opportunities. At the upcoming Advanced Clean Transportation (ACT) Expo, April 23-26, Volvo Trucks (Booth #1634) will demonstrate The Bigger Picture – going beyond the truck to explore the future of trucking and sustainable transport solutions through electromobility, automation, and connectivity.

“Because the industry continues to evolve at a rapid pace, it is no longer enough for Volvo to solely focus on developing and offering state-of-the-art trucks and services. The challenges we are facing demand a far more holistic approach,” said Peter Voorhoeve, President of Volvo Trucks North America. “We are prepared for this shift and are already collaborating with key stakeholders to develop, test and bring new sustainable transport solutions to the market through connected vehicle technologies, electromobility and automation.”

Volvo Trucks’ evolution from a truck and services provider to connecting multiple partners has enabled the company to develop innovative end-to-end solutions that will drive emission reductions, increase transportation efficiency, and improve road safety and quality of life for our communities.

Volvo LIGHTS (Low Impact Green Heavy Transport Solutions) is a public-private partnership. The project involves 16 partners working together to transform freight operations at the facilities of two of the U.S.’s top trucking fleets. Volvo LIGHTS is part of California Climate Investments, a statewide initiative that puts billions of cap and trade dollars to work reducing greenhouse gas emissions, strengthening the economy and improving public health and the environment – particularly in disadvantaged communities. Within Volvo LIGHTS, the all-electric Volvo VNR regional-haul demonstrator trucks will be put into operation in California in late 2019, ahead of a planned commercial North American roll-out in 2020.

Nikola Motor Makes Moves on New Fuel Cell Development Lab

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Phoenix, Ariz.-based Nikola Motor Co., a maker of heavy-duty electric and hydrogen electric powertrains, has signed a $16 million order to purchase equipment for the first phase of its fuel cell development laboratory.

The order represents the initial installment in an overall investment plan that totals several hundred million dollars, says the company, which will reveal more details about the facility at its Nikola World event, being held April 16-17 in Scottsdale, Ariz.

“It is critical that we move fast and have the best equipment as part of our truck development process,” states Mark Russell, Nikola Motor Co.’s president. “By creating our own facility, Nikola will be able to test and validate its fuel cell components in half the time it would take other OEMs and third-party labs.”

Energy Dept. Outlines Fuel Cell Vehicle Growth in Recent Years

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According to the U.S. Department of Energy (DOE), the number of fuel cell vehicles available to consumers and on the road continues to grow, as exhibited by sales and lease volumes.

As of February 2019, there were 6,558 fuel cell vehicles on U.S. roads, according to a “fact of the month” from the DOE’s Fuel Cell Technologies Office, part of the agency’s Office of Energy Efficiency and Renewable Energy.

The DOE notes that fuel cell vehicle sales (including leases) are currently only offered in select areas that have hydrogen refueling infrastructure.

The agency offers the following chart of cumulative fuel cell vehicle sales (including leases) from January 2015 to February 2019:

The DOE cites its numbers from Argonne National Laboratory, which lays out specific hydrogen fuel cell electric vehicle (FCEV) sales in February 2019: 94 Toyota Mirai, five Hyundai Nexo, zero Honda Clarity and zero Hyundai Tucson vehicles. Cumulatively, 314 FCEVs have been sold in 2019.

VW Adds Improved Engine and Extra CNG to Golf Variant TGI

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Volkswagen’s natural gas strategy continues to gain ground with the announcement that the Golf Variant TGI now joins the Polo TGI and Golf TGI as being available with a new eco-friendly natural gas engine and extended range using Compressed Natural Gas (CNG) or RNG.

As for the Polo TGI and Golf TGI, the Variant now boasts three natural gas tanks – instead of just two as before – once again increasing the already long range of the CNG drives. And there’s no need to compromise on space either to accommodate the three tanks on-board, as the natural gas tanks are integrated as a space-saving underfloor solution.

At the same time, the additional tank increases the range in natural gas mode by up to 80 kilometres compared to its predecessor. Thanks to the TGI Miller combustion process and the variable turbine geometry (VTG) of the turbocharger, the overhauled, powerful 1.5-litre four-cylinder engine with 96 kW (130 hp) and torque of 200 newton metres delivers significantly increased performance. This engine is primarily powered with CNG – the petrol tank is smaller as a result and thus only serves as a backup.

With the petrol tank reduced in size to 9 litres (for a Golf Variant TGI, that corresponds to a range of approximately 200 kilometres) and now serving merely as a backup, this is referred to as a quasi-monovalent drive concept. In other words, the range with natural gas alone has increased by around 80 kilometres, enabling routes of up to 440 kilometres (based on WLTP) with natural gas alone.

VW budgets $9 billion for electric vehicles, with luxury brand Audi taking lead with 30 new EVs

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The luxury arm of Volkswagen plans to accelerate its push into battery-electric vehicles with 30 BEVs expected to reach the market by 2025, company officials announced during their annual meeting on Thursday morning.

But the move is expected to ding the brand’s bottom line. Volkswagen expects to spend about $9 billion on electrification by 2023 — much of that through Audi, which is taking a leading role in the corporate effort. Audi is developing a new battery-vehicle “architecture,” dubbed premium platform electric, or PPE, that will be shared by other brands, including Porsche.

That is one of the key reasons why Audi’s operating return on sales will run between 7 and 8.5 percent in the near term, officials said during a meeting at brand headquarters in Ingolstadt, Germany, compared with a long-term Audi goal of between 9 and 11 percent.

Audi officials said they are taking steps to trim costs, even as they hope to counter a worldwide decline in sales last year.

The forgotten transportation fuel: Why some believe propane deserves a second look

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Strolling the floor at the National Truck Equipment Association’s Work Truck Show in Indianapolis last week, one booth had a large baby blue box van in it. Among the rest of the displays in the booth, this truck, built on the Ford (NYSE: F) F-750 truck platform, was powered by propane (sometimes called autogas) in a system developed by Roush CleanTech. The truck generated a broader question – “Why don’t more fleets use propane as a transportation fuel?”

Mike Taylor, director of autogas business development for the Propane Education & Resource Council (PERC), answered, “That is a really good question.” He told FreightWaves, “I wish I had a good answer.”

Propane is a byproduct of natural gas processing and petroleum refining and it is estimated that the U.S. has a 200-year supply of the fuel source. While it doesn’t pack quite the punch that diesel fuel does, it does produce enough power to handle many of the tasks diesel engines are asked to accomplish at a fraction of the overall cost, Taylor said.

Some fleets have embraced propane as a transportation fuel, while others stick with diesel or even gasoline if they operate medium-duty trucks. A primary reason is energy density. Based on a gallon of gasoline basis, diesel fuel provides 113 percent of the energy density, while propane provides just 73 percent, which is a significant drop-off.