Case: Transition from fossil fuel to green energy
In January of 2022, most of the vehicle fleet at Kolding municipality’s department ‘Redux – trash and recycling’ started to use biodiesel of the type HVO. The choice of investing into HVO, as the first step towards more climate friendly driving, has been made after thorough research in cooperation with the Institute of Technology. On this page, you can get an insight on the process leading to our decision on choosing HVO, in order to reduce the CO2 emission of the department..
What is HVO renewable fuel?
- HVO stands for ‘Hydrogenated Vegetable Oil’.
HVO is a renewable diesel, which can be produced from various vegetable oils and fats, which contain triglycerides.
- HVO does not smell, and the fuel reduces the immediate emission of CO2 with up to 90 percent.
Results
Redux chose to invest in HVO as a first step in our transition to greener emissions. This allowed us to make an immediate transition, as most of our trucks can already use this fuel type, and reduce CO2 emissions on six trucks immediately (92 tons of CO2 reduction), and eight trucks and one 3.5t vehicle within two years (135 tons of CO2 reduction).
- 47.74% CO2 reduction immediately after installing the HVO fuel tank.
- 70.21% CO2 reduction after the first year.
Pros
- Immediate impact
- Control over CO2 reduction vs. expenses
- Low cost of infrastructure
- Most vehicles can use HVO without modification.
Cons
- Risk of price increase and undesirable production methods due to increase in demand
- High fuel prices.
Lessons learned in the desicion process
- There is no single right approach for vehicle propellants, as all of them have drawbacks and harm the environment to various degrees at different stages of their respective lifecycles and/or production of propellants.
- Additionally, infrastructure turned out to have a much higher impact on the overall calculations than expected. It is interesting that this topic and the hidden costs associated with this aspect are rarely brought up as a barrier.
- Electric vehicles can carry less weight and have a shorter range, which means that more vehicles are needed to cover the same amount of tons per hour. This means increased emissions from the production of vehicles and an additional need for infrastructure.
Introducing the plan to reduce CO2 emissions from vehichles
Kolding Municipality has laid the groundwork for a focused effort to work on the green transition through the municipal sustainability strategy . In relation to the transport area, the municipality, in collaboration with the Danish Technological Institute, has prepared the first phase of a conversion plan for the fleet of vehicles and machine pool in the Municipal Waste Department, with the aim of creating the conditions for a significant reduction in CO2 emissions.
The conversion plan was divided into two phases
In phase 1, an overview was created of the fleet in terms of fuel consumption, CO2 emissions and costs for each individual vehicle and machine.
In phase 2, the purpose was to create an overview of possible technology choices within four main fuel tracks, which are:
- Diesel
- Electricity
- Biodiesel
- HVO, Hydrogenated vegetable oil
The fuels natural gas and hydrogen were also included in the project's early considerations, but were deselected as realistic possibilities for three reasons.
- It is not possible/profitable for the municipality to establish an infrastructure that supports these fuels without investing several million euros in fueling systems alone.
- The energy efficiency from the production of propellant is very low until it is converted to engine power. This is especially true for hydrogen if the fuel is compared to pure electric operation.
- Although a part of the Danish natural gas consists of CO2-neutral biogas - approx. 20% - the gas is still a fossil fuel and the CO2 reduction is thus limited, especially when compared with the other fuels included in this phase.
The result of the work will contribute to the Municipality's decision-making processes in the future is summarized in a one-pager, which forms a quick and clear overview of investment needs, fleet economy and CO2 saving potential within the four fuel tracks.
The image below shows a slice from the one-pager you can download as a PDF.
Procurement process
Although specific vehicles and machines are recommended in the one-pager, these will not necessarily be the best choices in two to three years as the market, especially for electric trucks, is developing rapidly. The case examples in the one-pager are based on the current technical stage for vehicles and machines and are intended as an experience base for future purchases and offers of passenger cars, vans, cranes, and trucks and machines respectively.
During the process of creating the one-pager and report on the benefits and costs of different fueling systems and the infrastructures required, Kolding Municipality Waste Department had to decide which strategy to employ in the transition from fossil fuel to green energy.
The one-pager clearly shows that electric vehicles have the highest impact, while diesel has the lowest cost. If the department had unlimited capital, a direct transition to electric vehicles would be ideal and have the highest impact. On the other hand, staying with diesel fuel for a few more years, would increase the budget for future spending and allow for a cleaner transition as the local infrastructure and the market in general would mature further.
In the end, the strategy that was employed was a compromise between the two. Setting up a local fueling station for HVO would allow us to mix it with diesel in relative amounts. This approach gives the department a high degree of control over cost and the ability to have an instant impact on CO2 emissions.
This choice carries its own challenges, as it seems unlikely that there is enough biomass from waste and surplus material to produce enough biofuel for everyone. This will result in the use of virgin materials and will put a strain on the biomass quantities required for food production. This is already a problem with some types of food and the problem will only increase as droughts and floods become more widespread and increase in frequency.
As such, we view HVO as a transition fuel, which allows us to reduce CO2 emissions while waiting for the electric infrastructure and electric vehicles that can carry a heavier load and have an extended range.
Though there are fewer parts in electric vehicles than in fossil fuel-powered vehicles the service agreements that the suppliers offer indicate that the parts for electric vehicles are more expensive, as there is no significant reduction in cost per annum.
The lifespan of electric trucks is also a problem, as the battery pack has an expected life span of only eight years - after which the consumer is expected to invest in a new vehicle. This seems like an environmental waste, as many other parts of the vehicle have a much longer lifespan. A more modular approach would prolong the lifespan of each module significantly – as is the case with fossil fuel-powered vehicles.