Eazy in Way - Infrastructure Still Top Issue for Electric Truck Deployment Infrastructure Still Top Issue for Electric Truck Deployment

Infrastructure Still Top Issue for Electric Truck Deployment

Published: June 29, 2024
Industry leaders recommend that when fleets are considering the addition of electric trucks, they should prioritize the charging infrastructure over the vehicle purchase. According to Paul Rosa, Penske’s Senior Vice President of Procurement and Fleet Planning, fleets can get a vehicle within the window of time it takes to install and energize the infrastructure. However, the cost of this transition should not be underestimated. A Class 8 battery-electric truck can cost $400,000, which can be lessened by government incentives, but the investment required in charging infrastructure to fully electrify the US commercial truck fleet is around $620 billion. In addition to this, utilities would need to invest an extra $370 billion, leading to a total investment close to $1 trillion. Developing a good relationship with the utility provider is essential, as rates and availability can vary. Furthermore, fleets can control costs by adequately sizing their charging infrastructure. For instance, an overnight 30-kilowatt charger may be sufficient for a vehicle with a 150-kilowatt cap and a 10-hour dwell time. The electrification challenge is compounded by changes to the grid, which over recent decades has become more reliant on distributed generation through noncentralized, intermittent sources, like rooftop solar sites and wind turbines. Trucking terminals, usually located in areas not well supplied with electricity, will need a substantial upgrade. Companies like Cyclum and Voltera are working to meet these new infrastructure challenges. Cyclum plans to create a network of charging stations with high-end convenience stores with driver amenities and aims to open four to eight locations next year. Voltera is developing large charging stations to serve specific fleet customers, working with utilities to find where electricity is available, and then developing those properties. Last year, they deployed around $150 million in capital on property acquisitions and development, a figure that's expected to increase this year. This shift to electrification will require careful planning, ongoing communication with utility providers and government agencies, and strategic infrastructure investments. Despite the substantial initial investment, fleets can optimize their transition by correctly sizing their charging infrastructure, leveraging existing local resources, and carefully planning the deployment to align with their specific operational needs. The story discusses the increasing prevalence and challenges of developing charging infrastructure for growing electric vehicle fleets. Several firms shared their experiences and guidance, highlighting infrastructure as an essential step, which can be difficult due to the need for cooperation between utilities, governments, and the fleet itself, and unanticipated location issues. For small fleets, observing larger fleets' actions and hiring consultants were suggested. Costs of infrastructure and a changing grid are key challenges. Companies such as Voltera and Cyclum are constructing large-scale charging stations and networks respectively to supply power to various types of vehicles on the road. Communication with utility providers, rightsizing the infrastructure, and enlisting help from truck manufacturers were recommended for fleets venturing into EVs. The freight industry will reportedly need to invest around $620 billion, with utilities spending an extra $370 billion, to fully electrify the US commercial truck fleet. From a transportation expert perspective, these experiences and advice underscore how transitioning to electric fleets involve multifaceted planning and cooperation from diverse stakeholders. This shift will significantly impact distribution strategies, grid demand, and the broader energy industry. By learning from pioneers who've started to navigate this terrain, future electric fleet adopters can avoid potential pitfalls, thereby facilitating a smoother transition to sustainable transport systems. A study has revealed that fully electrifying the U.S. commercial truck fleet will require approximately $620 billion of investment in charging infrastructure. The industry will need utilities to invest an additional $370 billion, bringing the total cost to about $1 trillion. Experts have emphasized the importance of fleets engaging with utility providers early in the process to ensure that the necessary power capacity is available and that the utility company can justify the investment. It is recommended that fleets plan their charging requirements based on their long-term needs and seek communication with their utility provider regularly. Fleets are also advised to consider rightsizing their charging infrastructure to keep costs down. The cost of the infrastructure depends on the megawatts provided and the amount of electricity used, so charging as slowly as possible could minimise costs. Voltera and Cyclum are working on providing power over the road by building large charging stations for fleet customers and creating a network of charging stations respectively. Both companies plan to offer renewable energy at these stations. From the perspective of an industry expert, the high initial investment necessary to electrify the commercial truck fleet could be offset by long-term cost savings and environmental benefits. The shift towards electric fleets is in line with global sustainability efforts and aligns with trends towards cleaner, less carbon-intensive transportation methods. Challenges lie in the right sizing of charging infrastructure, the availability and cost of power, and the coordination among fleets, charging station providers, and utility companies. Companies in the transportation sector are increasing their efforts to create sustainable, electric vehicle charging infrastructure. Cyclum is planning to open a network of charging stations that also offer renewable, transitional and traditional fuels. The aim is to open 4-8 locations in the next year and 30-40 sites annually for the next decade. The stations will also include advanced amenities, such as servicing for autonomous vehicles. Meanwhile, Voltera is building large charging stations specifically for fleet customers. They partner with utilities to identify suitable locations near clusters of trucking companies. They have recently opened a $15 million facility capable of charging up to 200 electric trucks a day. Furthermore, they intend to invest more than the $150 million they invested last year in property acquisitions and development. As experts in the field, firms such as Ryder recommend that companies engage with their utility provider as early as possible when considering investment in electric infrastructure, and plan their infrastructure requests diligently to keep costs low. However, the increasing demand for electrification presents challenges. Changes to the electricity grid, such as reliance on distributed, intermittent sources like solar and wind, can complicate planning and installation of charging infrastructure. Furthermore, perspectives on costs need to shift, as what can initially seem an expensive outlay can be viewed as depreciable real estate improvements. It's clear that while the journey to increased electrification in transportation poses challenges and requires careful planning, it's a necessary progression for a more sustainable future. The news article discusses the development of charging infrastructure and how this affects the transport industry, with key industry figures offering their perspectives. Cyclum and Voltera are planning to provide charging stations that cater to various transportation needs, including autonomous vehicles. Cyclum's stations are part of a network paired with convenience stores and aim to offer a variety of fuel options. Voltera focuses on building large charging stations that serve specific fleet customers and they also work closely with utilities to ensure electricity availability. Both companies have ambitious plans, with multiple sites in the development stage. On the fleet management side, experts advise early engagement with utilities to facilitate infrastructure development. The importance of rightsizing charging infrastructure to keep costs down was emphasized, as well as the benefits of careful planning in building sustainable fleets. Recognizing the potential difficultly of large-scale charging infrastructure installations, other solutions such as leveraging nearby charging locations are also discussed. As an expert in transportation, it is evident that the electrification of transport is accelerating and infrastructure development is a crucial aspect of this transition. Collaboration among different stakeholders including private companies, government agencies, and fleet operators is vital. Moreover, offering an array of charging options could be a game-changer in the transition towards sustainable transport. However, implementation comes with challenges that need thorough planning and strategic solutions. Key areas to consider are the appropriate sizing of charging infrastructure, maintenance, location, and potential obstacles that may arise during the installation process. Also noteworthy is the evolution of the utility grid due to distributed generation, which could influence the strategy of fleets as they electrify. The issue of constructing efficient charging infrastructure is significant as fleets transition toward electrification. The article describes the charging infrastructure outlook with insights from Voltera and Cyclum — companies working to develop large scale charging stations. Voltera's CEO, Matt Horton, predicts an increase in such amenities as investors recognize their potential. Voltera recently opened a $15 million facility at Long Beach that can charge up to 200 electric trucks daily. Cyclum also plans a network of charging stations integrated with convenience stores. Ryder System's Miles Archer advises fleets to optimize their charging infrastructure by considering factors like vehicle capacity, daily running distance, and dwell time. This could avoid unnecessary investment in high-power chargers and reduce costs. Challenges like high initial infrastructure costs and permits may arise, as highlighted by UPS's Ryan Bankerd. Smaller fleets, in particular, may experience unexpected difficulties during installation due to unpredicted onsite factors. Hence, careful planning and collaboration with utilities and government agencies are crucial for successful infrastructure development. Additionally, the article emphasizes the need to expand the grid due to growing energy demand and increased reliance on distributed generation. As the switch to electric fleets progresses, it's likely that traditional trucking terminals, which haven't typically consumed much electricity, will need far greater power supply. The article discusses the complex process and challenges of developing charging infrastructure for electric truck fleets. Cyclum and Voltera are two companies pioneering this area, building high-end convenience stores with attached charging stations and custom charging sites for individual fleets, respectively. The companies' innovative approach to the distribution of electricity, often using renewable natural gas and wind power, could revolutionize the trucking industry and offer a more sustainable future. However, developing large-scale charging infrastructure can be difficult due to utility and permitting challenges. Therefore, fleets are encouraged to hire consultants and understand optimal locations for meeting sustainability goals before investing. The changes to the electricity grid over recent years, which now relies more on distributed generation from non-centralized, intermittent sources like wind turbines and solar panels, can also pose difficulties for fleet electrification. Given this, major investment is envisaged to flow into this sector as charging facilities are regarded as profitable ventures. From my expert perspective, this shift towards electrification in the trucking sector is not only environmentally beneficial, but can present significant economic advantages. As more companies embrace this change, the establishment of robust charging infrastructure will be crucial. While challenges are inevitable, the blend of renewable energy sources and innovative infrastructure development could smoothly navigate the industry towards sustainable transportation. The current electricity grid is not ideally suited for large fleet vehicle operations, largely due to changes over the years that have increased reliance on intermittent, noncentralized sources of power such as wind turbines and solar panels. Demand for power, which remained flat for two decades, has begun to grow again, placing additional strain on an infrastructure already in need of expansion. Fleet vehicle terminals, traditionally light users of electricity, are likely to need heavier electrical supply as they shift towards electric vehicles. Two companies, Cyclum and Voltera, are developing solutions to the power issue faced by fleets. Cyclum plans to build a network of charging stations and convenience stores, offering a range of fuels including wind- and gas-generated electricity. Voltera builds large charging stations for specific fleet customers, working with utility companies to identify suitable locations. As an expert in transportation, I believe that these developments signal an increasing readiness to transition towards more sustainable energy use in the transport industry. However, the challenge of adapting to these new power demands, especially for smaller fleets, should not be underestimated. More investment will be needed across the board to make the grid more suitable for electrified fleets in the future. Furthermore, companies considering electrification should seek professional consulting to navigate the complexities of implementation. The news reports on two companies, Cyclum and Voltera, that are working to address the challenges of providing adequate power infrastructure for fleets as an increasing number are moving towards electrification. Cyclum is planning to develop a network of charging stations that are to be coupled with high-end convenience stores. With an initial plan of opening 4-8 locations by next year, Cyclum aims to establish 30-40 sites per year over the next decade. These sites will provide various fuel options spanning from traditional to transitional and renewable fuels such as electric charging, hydrogen, compressed natural gas, renewable and traditional diesel. The proposed sites will also be equipped to service autonomous vehicles. Each site will be costing around $35 million, however, they are expected to qualify for tax credits of 30%-35%. Voltera, on the other hand, is focusing on building large charging stations to cater to specific fleet customers. The company, which last year deployed about $150 million for property acquisition and development, is partnering with utilities to ascertain where electricity can be easily accessed, and then developing the property. The company is specifically targeting areas with high truck traffic density. It recently opened a $15 million facility near the Port of Long Beach, California, that charges up to 200 Class 8 electric trucks a day at its 65 DC fast charging stations. Voltera is in the process of developing another 19 sites with more lined up in the pipeline. From a professional point of view in the field of transportation, these developments are quite significant. As fleets are increasingly transitioning to electrification, the importance of an extended and solid charging infrastructure cannot be overstated. Companies like Cyclum and Voltera are playing a pivotal role in this process by not only accelerating the transition but also making it easier for fleets to adopt electric vehicles. Their investment in infrastructure will be a critical factor in pushing the envelope of electrification in the transportation industry.

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