Why renewable diesel is taking the lead

The construction industry and related fields are facing various changes in vehicle regulations as they try to manage CO2₂ emissions emitted by fleets. With everything changing so quickly and many new unknowns emerging, it’s important to turn to experts for help clarifying the situation. Gladstein Neandross & Associates (GNA) hosted the Future of Sustainable Fleets seminar on May 15, 2024 to shed some light on this topic. The seminar was led by Nate Springer, vice president of market development at GNA, and the session’s panel featured speakers from major industry players, including Volvo Trucks North America, Penske Transportation Solutions and Chevron.

The panel jointly considered questions from media representatives regarding various groups of commercial vehicles and equipment. These are some of the key issues raised throughout the session.

Sustainable fleets – a fleet perspective

The industry is currently facing a flood of new energy options for fleets and countless new policies. Springer said the industry is experiencing peak complexity due to technological advances and new regulations.

“When we look at all of this from a fleet perspective,… it seems that fleets are faced with a bewildering array of options to not only meet regulatory requirements, but also to meet their own sustainability goals or the sustainability goals of their customers,” Andrew said Cullen , senior vice president of fuels and facility services at Penske.

With the move towards cleaner fuels, several specific fuel types are being promoted and supported. They include:

• Renewable diesel

• Biodiesel

• Renewable natural gas

• Hydrogen

Nuray Elci, vice president of innovation and technology ventures at the company Chevron, said: “They all have their advantages, limitations, challenges, and of course the political environment makes them even more difficult for everyone to decipher.”

Fleets are bombarded with so many changes and regulations that it is becoming increasingly difficult to determine what is best while still meeting requirements.

Biodiesel and diesel from renewable sources

During the session, a question was asked about the status between biodiesel and renewable diesel. The question related to the fact that renewable diesel seems to be taking the lead in recent times and respondents wanted to know why.

“(For) renewable diesel in the Western states, both capacity and demand have really increased significantly, and of course the lower carbon fuel standards are an incentive for those markets, which has really boomed in the markets in California, Oregon and Washington,” Elci said.

As many states have adopted policies supporting low-emission fuel solutions, renewable diesel is gaining popularity. The country has been looking for different options when it comes to lower carbon fuels. Large companies began to promote renewable diesel as a strong competitor, which may have influenced the renewable diesel boom.

“After many years of testing and evaluating renewable diesel, we decided on trucks that will power 100% of the trucks leaving the factory. We believe this sends a signal to the market that it is solid, does not absorb moisture and does not pose any issues in terms of vehicle operation or warranty,” said Keith Brandis, vice president of partnerships and strategic solutions at the company Volvo NA Trucks.

A show of support from companies such as Volvo Trucks could play a role in increasing demand for renewable diesel.

Hydrogen versus battery

Across the country, fleets are generally trying to use a more sustainable type of fuel. Many people predict that long-distance transport will be powered by hydrogen, not batteries.

Brandis said: “We have electric batteries designed for – high density, short… back and forth transports – we have hydrogen fuel cells. We will also continue to invest in internal combustion engines that burn fossil or renewable fuels, our energy could be hydrogen.”

Brandis mentioned that because hydrogen is such a small element, trucks will require adaptations to properly store it, but this adaptation will allow for longer distances and lower fuel consumption over time. Volvo continues to test hydrogen fuel cells in various environments to improve the user experience.

Companies continue to test different energy options to determine which one is better for long-haul trucking.

Driver acceptance

Brandis mentioned the uncertainty surrounding the transition to electric five years ago. He said there are concerns about whether they would have to build an entirely new vehicle to take advantage of the technology, or whether they could try replacing engines in existing trucks. Once they have made their first attempt at change, it is time for feedback.

“We knew they would like the acceleration because you press the pedal and it goes away. We knew they would love it when it was so quiet they could hear other traffic sounds,” Brandis said.

Drivers said it was very different from driving a diesel truck. There were quite a few improvements compared to diesel trucks, and some were even unexpected.

Branis added: “It was really surprising that it was more stable due to the lower center of gravity with the batteries mounted where they are on the chassis. When you get to the exit. It just maintains speed on the slope.”

In addition to these benefits, users of the greener fuel were pleasantly surprised by the lack of diesel odor at the end of the day.

“They love the power, they love the quietness, they love the smoothness, but they also want to learn how to operate the vehicles more efficiently,” Cullen said.

With concerns about switching to lower carbon options, it’s important to note that there are benefits to switching to other options – even drivers can see improvements.

Sustainable Fleets Report

Overall, the session answered questions that seemed to be plaguing the industry and boosted confidence in the market. Along with this seminar, GNA published a 75-page publication State of Sustainable Fleets Report 2024. This report covers the topics mentioned and some more specific ones, and provides readers with a better understanding of the future of sustainable fleets and the impact of policies and requirements on fleets.

With the help of key industry players and the report, it is easier to understand what is happening and gain confidence in the regulations and the different low-emission fuel options.