Alternative Fuel Developments

For distribution operations on sea or land, by far the biggest daily cost is fuel. Added to this is the pressure to go green for very many reasons, writes Richard Shepherd-Barron.

The use of alternative fuels to fossil-derived products across a wide range of logistics applications continues to increase as companies move forward into more environmentally friendly operations with zero or low emissions – electricity, hydrogen, compressed natural gas (biomethane) or methanol.

Now that many retailers have rigorous sustainability policies, this means that they will be seeking out and then favouring ‘green’ partner companies over their less sustainable competitors. An example this is the introduction by Maersk of the fifth ship in a series of 18 large dual-fuel methanol vessels scheduled for delivery from last Autumn through 2025. The ‘Alexandra Maersk’ (pictured) – 47,700 tonnes and 16,592 TEU – was named in a ceremony at Felixstowe last October. These new methanol-enabled ships are at the core of Maersk’s ambitious decarbonation plans as low emission methanol can reduce the greenhouse gas (GHGH) emissions by 65 to 90 per cent.

A major user of Maersk’s services is the well-known British and international retailer Primark, which employs more than 80,000 people across 17 countries. Their CEO, Paul Marchant, said during the naming ceremony: “We’re committed to reducing the impact we have on the environment across our entire operation, including our supply chain. Through our partnership with Maersk we’ve started to introduce green fuel alternatives when shipping our products by using Maersk’s ECO Delivery Ocean product and replacing fossil fuels with green fuel alternatives, we’re reducing our greenhouse gas (GHG) emissions in our ocean shipping.”

On a rather different scale, Carisbrooke Shipping, based in the Isle of Wight and Rotterdam, operate 26 vessels between 5,000 and 17,000 tonnes in European waters. Natalia Walker of Carisbrooke explained: “We’re part of a consortium, led by Carnot Ltd, which has been awarded £2.3 million to deploy its 70% efficient 50kW marine hydrogen engine to provide auxiliary power on a general cargo vessel. The project will explore how hydrogen can be used to generate electrical power on board cargo vessels. The demonstrator vessel – the ‘Kathy C’ (4,151 tonnes) – is a UK-flagged general cargo vessel designed to carry multiple types of dry cargo from grain to aggregates and is scheduled to undergo real-world testing this year.”

The Carnot 50-kW engine is a precursor to 200 to 400kW auxiliary engines, and eventually to 1 top 10MW main engines. The hydrogen fuel is supplied by Compass Syngas Solutions, based in Deeside, Wales, who secured almost £4 million in government funding to make its biomass and waste-to-hydrogen plants even greener by using carbon capture from its hydrogen production from waste wood and other selected non-recyclable materials.

Electric Vans

On land, many developments are taking place, very much dependent on operating requirements: Vauxhall has started customer trials with its Vivaro hydrogen van, involving some of the UK’S largest fleets. James Taylor, Vauxhall’s MD, said: “As the UK’s best-selling electric van manufacturer for the past three years, we’re already leading the way in electrifying Britain’s businesses.” To emphasise this, Royal Mail have just taken delivery of their 6,000th electric vehicle.

Marks and Spencer have introduced 85 lower emission vehicles to its fleet. Five of these are battery electric Renault 42-tonne units which will deliver to 30 M&S across London and the South East. In addition, 80 new trucks, fuelled by compressed natural gas (biomethane), will join the fleet, 50 of these being operated by Gist in its food supply chain system. Julian Bailey, Head of Group Transport at M&S, commented: “Adapting our logistics network is vital in achieving our Plan A Net Zero ambition. We’re committed to reducing carbon emissions from our transport.”

In Germany, Nippon Gas and the Hoyer Group have introduced the first hydrogen-powered truck to transport dry ice. The truck has short refuelling times and a long range, which is exactly where a battery electric truck reaches its limits. Watch this space for more fuel innovation.

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Energy Storage to be Major Challenge for Logistics Industry in 2025

In its latest report, Toyota Material Handling emphasizes that energy storage will become a critical concern as electrification gains momentum.

High-Capacity Batteries: The Future of Energy Infrastructure

The Trends in Logistics 2024 report from Toyota Material Handling stresses that as companies transition to electric vehicles and battery-powered equipment, effective energy storage will be vital. The report argues that high-capacity batteries could play a crucial role in the UK’s future energy strategy, potentially powering entire industrial sites—or even cities—during times when renewable sources aren’t available.

“There is no doubt that high-capacity batteries will become a part of the overall energy landscape,” said Gary Ison, product development manager at Toyota Material Handling. “Battery manufacturers and OEMs are racing to develop batteries capable of powering electric vehicles like forklifts for extended periods while also storing renewable energy for when the sun isn’t shining and the wind isn’t blowing.” The technology could be compared to Tesla’s Powerwall systems, but on a much grander industrial scale.

The Race to Develop New Battery Technologies

The report highlights rapid advances in battery technology, pointing out that materials such as silicone, graphene, and sodium are gaining attention. Despite this, the much-hyped solid-state batteries—widely considered the future—remain expensive and difficult to produce, delaying their widespread use. This situation echoes the electric vehicle market, where models like the Tesla Model 3 and Nissan Leaf continue to rely on traditional lithium-ion batteries despite the potential of newer technologies.

Alternative Fuels Gaining Traction

In addition to advancements in batteries, Toyota’s report also highlights the growing interest in alternative fuels. Hydrotreated vegetable oil (HVO) and hydrogen are becoming popular among operators of large fleets. Hydrogen fuel cells, for example, are already in use in high-demand environments such as Amazon warehouses, where fast refueling and emission-free operation are critical. Ison explained, “For companies with access to on-site hydrogen supplies, fuel cells can be refueled in just a few minutes and enable emission-free operations.”

Grid Capacity and Renewable Energy Availability Remain Concerns

Despite the optimism around new technologies, the report warns of ongoing concerns regarding grid capacity and the availability of renewable electricity. These issues are familiar in the UK, where rising electric vehicle adoption has sparked fears of grid overload during peak times. Similar concerns could slow the logistics sector’s transition to electric power, potentially hindering the UK’s net-zero targets.

“Transitioning to sustainable energy sources is one of the most significant issues facing the supply chain sector,” said Ison. “While the shift from internal combustion engines to electric vehicles is well underway, grid stability and reliable electricity generation remain challenges.”

Navigating a Changing Energy Landscape

Toyota’s Trends in Logistics 2024 offers a snapshot of how the logistics industry is navigating the complexities of decarbonization and technological innovation. As the sector strives to balance ambitious climate goals with practical challenges, the report suggests that energy storage will be at the heart of the industry’s future.

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