Alternative fuels for HGVs

Road transport is a big factor in producing greenhouse gas emissions which has meant the transport sector has become increasingly under pressure to become more sustainable. Environmental legislation means transportation companies must consider which fuel to use to meet stricter regulations and which alternative fuels can optimise their operations.

We discuss which alternative fuel could help your transportation company comply with legislation while saving money.

TIMOCOM can help your transportation company be more sustainable with route planning and our freight exchange to help reduce empty loads. Therefore, we recommend you to get a free trial of the TIMOCOM Road Freight Marketplace. 

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What is alternative fuel for lorries?

Alternative fuel for lorries is fuel which acts as a substitute for fossil oil sources. It is an alternative fuel to diesel or petrol.

The Alternative Fuel Infrastructure (AFI) Directive recognises six types of alternative fuels:

1. Electricity

2. Hydrogen

3. Biofuels

4. Synthetic and paraffinic fuels

5. Natural gas including Biomethane in gaseous form

6. Compressed natural gas (CNG), Liquified natural gas (LNG), and Liquified petroleum gas (LNG).

Why do transportation companies need to consider sustainable fuel?

Lower costs, legislation, and enhanced reputation are just a few of the reasons why transportation companies should consider sustainable fuel. Others include:

Fuel costs

Fuel costs fluctuate which can cause uncertainty for transportation companies. When fuel prices increase, it can impact the bottom line. With sustainable fuels they could potentially be more stable because they don’t rely on these market fluctuations by the fossil fuel industry.

Diesel can be more expensive than some alternative fuels like electric.

However, hydrotreated vegetable oil (HVO) is a biofuel that generally costs around 10% to 15% more on average than diesel but there could be longer-term savings. For example, HVO fuel reduces carbon emissions by as much as 90% which can help reduce overall costs.

What are the environmental impacts of trucking?

Due to increasing legislation and other pressures, it is in transportation companies’ best interests to focus on sustainability. Countries have been bringing in sustainable legislation that means more costs for vehicles with poor emissions. Along with required legislation, stakeholders such as customers and partners are putting pressure on companies to be more sustainable. Customers want to do business with companies that care about their impact on the planet and investors want to give money to companies that prioritise this too as it is less risky. Not only these factors but if transportation companies want to have a positive impact, then reducing their carbon emissions and protecting the environment should be important to them.

Gillian McKee, Sustainability Consultant at Giraffe Associates says, 

"Today, transport emissions represent around 25% of the EU's total greenhouse gas emissions, so the shift away from petrol and diesel in transportation must continue to happen at pace if we're to meet our net zero commitments. While EVs do still cause some debate, it's expected that with more clean energy being produced and efficiency improvements in production, by 2050, the life-cycle emissions of a typical electric vehicle in Europe could be cut by as much as 73%. EVs are not the only option of course and for some heavier freight transport, they are not yet a practical option. Alternative fuels such as hydro-treated vegetable oil (HVO) are being used by many companies as an interim measure as they don't involve fossil fuels, though higher costs are a barrier to more widespread adoption." 

Operational efficiency of sustainable HGV fuel

Using alternative fuels may improve operational efficiency for transportation companies. Biofuel reduces wear and tear on the engine because biogas engines run cleaner than diesel. This can mean fewer repairs, less downtime, and lower costs. While biofuel and diesel may have little downtime, electric vehicles need to be recharged.

Diesel is easy to refuel but currently in the UK, hydrogen is rare as is biofuel and electric charging is limited but there are plans to change this.

Legislation regarding alternative fuel for HGVs

Governments are increasingly putting pressure on the transport sector to use sustainable fuels to achieve their climate change goals. There have been various renewable fuel regulations put into place and to be rolled out in the future that will impact the fuel used in the transport sector.

Diesel HGV phase out

As part of the UK government’s Net Zero Strategy, there is a phase-out of non-zero emissions vehicles including diesel. The sale of new diesel-powered heavy goods will be phased out by 2040 and 26 tonnes and under HGVs aim to be zero emission by 2035.

It won’t be illegal to drive a diesel vehicle you already own but no new vehicles will be sold. This of course will also impact being able to sell your vehicles.

Clean air zones

There are already clean air zones in many cities. Clean air zones are areas where you need to pay a charge if your vehicle exceeds the emission standards for that area. In Scotland, the equivalent to clean air zones is low emission zones which work similarly.

Renewable transport fuel obligation (RTFO)

The RTFO is a government policy that encourages the use of low-carbon fuels in transport. It sets annual obligations that require fuel suppliers to have a certain percentage of their fuel comprising sustainable low-carbon fuel. By 2030, 19.474% of all fuel supplied by fossil fuel companies will be required to be approved eligible low carbon fuel. While the policy stopped in 2020, in 2024 this obligation was set at 11.8% as a share of total liquid fuel by volume and will increase to 12.15% in 2025 and 14.6% by 2032.

What are alternative fuels for HGV?

There are various alternative fuels to diesel with their own limitations. You should consider the total cost of ownership for each, government incentives, infrastructure, and operational fit to understand which alternative fuel source works best for your business.

Hydrotreated veg oil (HVO)

Hydrotreated vegetable oil is created by adding hydrogen to vegetable oil and is very similar to diesel, which makes it a smooth transition.

Pros of HVO HGVs

·  Reducing transport emissions
HVO can reduce greenhouse gas emissions by up to 90% compared to diesel, which means you’re protecting the environment and complying with legislation.

·  HVO vehicle conversion
Since HVO is very similar to diesel, it is unlikely you will need to make any modifications to your vehicle to use this fuel.

·  Longer storage life of HVO
HVO can be stored for longer periods of time without degrading because it is more stable than diesel.

Cons of HVO HGVs

·  Cost of HVO compared to diesel
HVO is generally 10-15% more expensive to purchase than diesel, but this could change if demand increases.

·  Availability of HVO for HGVs
HVO is not widely available across the UK, which is a problem when route planning.

· Effectivenes of hydrogen at reducing carbon emissions
While HVO is better at lowering carbon emissions compared to diesel, it still emits carbon emission,s which means it won’t be enough for a fleet aiming to fully decarbonise.

Electric HGVs

There are different types of electric trucks including hybrid electric, plug-in, and battery. If you want to learn more about the pros and cons of electric vehicles, we recommend you to read this article. We have explained in-depth the advantages and challenges that may arise when investing in electric vehicles.

Pros of electric HGVs

· Zero emission electric trucks
Electric vehicles have been found to cut carbon emissions by more than 15 tonnes of CO2 per vehicle per year.  

· Operational costs of electric HGVs
There are fewer parts in electric vehicles which means lower maintenance costs, along with electric being cheaper than diesel and with a 13% lower total cost of ownership than a diesel model.

· Enhanced brand image
Consumers are choosing more sustainable brands, with 78% of respondents in a McKinsey study saying a sustainable lifestyle is important to them. As well as enhancing your brand image with customers, companies who made environmental social and governance (ESG) related claims saw an average of 28% growth compared to those who didn’t.

Cons of electric HGVs

· Initial cost of electric HGVs
The purchase price of electric HGVs is significantly more costly than other types, due to their expensive batteries. This could change as production increases, however.

·  Electric vehicle charging infrastructure
There are limited charging stations with most chargers designed for cars, not HGVs. Some companies have installed electric chargers in their depots, but this adds to the initial costs of running electric.

·  Electric truck range
The range of electric vehicles is still rather limited compared to diesel. This may make them unsuitable for long-haul journeys unless this changes.

· Electric truck batteries
The batteries are expensive and heavy. Some companies swap the battery instead of charging to avoid downtime, but this adds additional costs. The batteries are also heavy and take up payload capacity.

Hydrogen for HGVs

Hydrogen is combined with oxygen to generate electricity.

Pros of hydrogen

·  Environmentally friendly hydrogen HGVs
Hydrogen-powered HGVs only produce water vapour, and it doesn’t emit any tailpipe CO2 or NOx emissions which makes them ideal for urban areas and clean air zones.

·  Range of hydrogen HGVs
Hydrogen can see a range of 300-500 miles, which is more than most electric trucks which makes it better for long-haul logistics.

·  Refuelling hydrogen HGVs
Hydrogen is quick to refuel, around 10-15 minutes, which avoids lost time due to refuelling and makes route planning easier.

·   Lighter battery packs
The fuel cell systems are lighter than battery packs, which helps maximise payload capacity.

Cons of hydrogen

·  Cost of hydrogen
Hydrogen fuel is more expensive than diesel and electric.

· Infrastructure for hydrogen commercial vehicles
There is a lack of refuelling stations in the UK and although this could be changing, it could be difficult for some time, and it means spending more time route planning to ensure you don’t run out of fuel.

·  Storage of hydrogen for HGVs
Hydrogen is highly flammable and therefore storage needs to be in high-pressure tanks or cryogenic storage.

Liquified natural gas (LNG) and compressed natural gas (CNG)

LNG is a natural gas which cools down to a liquid. While it is a fossil fuel, it produces less carbon emissions. CNG is a natural gas stored at high pressure and is more suited for urban areas.

Pros of LNG and CNG

·  Is LNG gas and CNG gas environmentally friendly?
Both LNG and CNG produce less carbon emissions by up to 20%. This helps protect the environment and meet sustainability goals.

·  Fuel costs for HGVs
Generally, LNG and CNG are cheaper than diesel with prices being more stable which helps for budgeting.

Cons of LNG and CNG

· Initial costs for HGVs
LNG and CNG are more expensive than diesel due to needing reinforced high-pressure tanks and engine modifications. A LNG truck can cost up to £29,300 more compared to a comparable diesel analogue.

· Infrastructure of natural gas
The UK has few refuelling stations, which don’t suit long-haul journeys and make route planning more difficult.

· Methane emissions of LNG and CNG gas
CNG is still a fossil fuel and so is not net-zero unless it uses biomethane. LNG releases unburned methane, which is more potent than carbon dioxide emissions.

How TIMOCOM can help your transportation company be more sustainable

TIMOCOM has a wide range of support for transportation companies, such as the digital freight exchange to find partners and reduce empty loads. It also has a route planner which helps to optimise your costs, avoid delays, and satisfy your customers. Additionally, TIMOCOM offers relevant news and knowledge for you to improve your transport businesses. 

Danish haulier Sejer & Sønnichsen A/S have used TIMOCOM to “optimise our own vehicles and thus reduce empty kilometres. Sustainability is important to our company.”

Not only can TIMOCOM help your business to be more sustainable, but it can also help you reduce costs and increase profitability. If you are a company in the UK and would like to learn more about the costs of shipping, we recommend you to download our whitepaper. And don't forget to sign up for our newsletters to get the latest transport news directly in your inbox.

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