3 minute read
An honest look at alternative fuels in logistics
Actions to take while you wait for viability
The logistics sector is at a critical juncture on its path to sustainability. The promise of alternative fuels such as electric, hydrogen, and biofuels offers hope for a greener future, but their widespread adoption faces isn’t an immediate quick fix. Here, we evaluate the current state of these fuels and explore why organisations should act now rather than wait for these solutions to mature.
Current state of alternative fuels in logistics
Significantly, our latest research* highlighted the difference availability and affordability makes in decision-making. It’s telling that while 28% of those surveyed think alternative fuel vehicles will be available in 1-3 years for their logistics fleet, only 25% believe alternative fuel vehicles will be affordable within 4-6 years.
Electric vehicles
Electric trucks, especially for light and medium-duty vehicles, are becoming more common. However, only 300 electric heavy goods vehicles (HGVs) are registered in the UK out of 500,000. The limited range of current battery technology and the lack of charging infrastructure remain major barriers.
Hydrogen fuel cells
Although the UK aims to lead in hydrogen technology, hydrogen vehicles lag behind electric ones in availability. Many organisations are seeing that hydrogen-powered buses show potential, but commercial viability for logistics is not yet realised.
Biofuels
Biofuels like hydrotreated vegetable oil (HVO) and biomethane provide an immediate alternative. For example, Wincanton's logistics vehicle fleet for Screwfix now primarily uses HVO. Despite their benefits, biofuels have commercial and technical complexities that need addressing.
Why organisations shouldn't wait
Organisations should not delay action for several reasons:
- Immediate need: the climate crisis requires urgent action. Delaying could result in missing net-zero targets.
- Economic pressures: economic challenges make investing in new technology difficult, and waiting could exacerbate these issues.
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Technological challenges: barriers like infrastructure and high costs will take time to overcome.
What organisations can do now
While waiting for alternative fuels to mature, organisations can:
- Optimise routes: use digital solutions to optimise routes and reduce empty running, cutting CO2 emissions and costs.
- Collaboration: share logistics fleets and use digital platforms for collaborative optimisation, improving efficiency and resilience.
- Outsource: partner with expert logistics providers to access advanced technologies and focus on core business activities.
Conclusion
The journey to sustainability in logistics is challenging. Alternative fuels show promise, but immediate action is essential. By optimising routes, collaborating, and outsourcing , businesses can reduce their carbon footprint and meet environmental targets.
We surveyed over 500 decision makers for supply chain, transport, and logistics across multiple sectors in the UK to gauge their confidence in the viability of alternative fuels.
About the Author: Helen Flanagan
Product Director - EyeQ
Helen Flanagan is the product lead for EyeQ, Wincanton's digital transport control tower product. She joined Wincanton in 2023 and plays a key role in the strategic shift in the business to focus on transport services powered by digital technology. Helen brings a depth of experience in logistics operations, sales, solutions design and consulting and has enjoyed varied roles at DHL Supply Chain and Kuehne & Nagel.