Now in its fifth year, the State of Sustainable Fleets 2024 Market
Brief, released today, sheds light on an industry meeting the
moment of an active transition. A slew of new emissions regulations
that were adopted in the past two years combined with the growing
pains of new technology spotlight a period of peak complexity for
fleet operators. Brief author and leading clean technology
consulting firm, TRC Companies (TRC), having acquired the entity
formerly known as, Gladstein, Neandross & Associates (GNA)
LLC, unveiled the latest findings at the Advanced Clean
Transportation (ACT) Expo, the largest commercial transportation
conference, hosted this year in Las Vegas, Nevada
“The last two years of decisive new emissions regulations and
the complexity that come with adopting any new technology, let
alone multiple new clean technologies, compounds confusion for
fleets,” said Nate Springer, Vice President Market Development, TRC
Companies. “It is exciting to see the numerous new partnerships,
investments, and innovations that industry and government are
forging to put sustainable solutions into the hands of fleets today
while laying the groundwork for tomorrow’s ever greater adoption of
clean technologies.”
The previous year continued a record flow of $32 billion in
state and federal funds available to fleets while supplies of
renewable diesel and renewable natural gas reached new highs to
deliver solutions for fleets today. A vanguard of new utility-fleet
partnerships, depot and leasing business models, and technologies
to utilize existing natural gas supplies revealed an oncoming host
of innovations to solve the charging challenge.
“Fleets today are faced with a myriad of challenges in their
continual pursuit of reducing the environmental impact of their
operations,” stated Drew Cullen, Penske Senior Vice President of
Fuels and Facility Services. “The complexity of options, investment
requirements, and the promise of continued technology improvements
only adds to fleet planning uncertainty. The 2024 State of
Sustainable Fleets report is a tremendous resource for fleets to
evaluate the range of options available and under development as
they advance their strategy to meet and exceed sustainability
goals.”
As zero-emission regulations take hold in 11 states and a new
emission standard deadline for model year 2027 looms nationally,
fleets struggle to comply with a confusing new regulatory
landscape. For fleets trying to deploy zero-emission technologies
to meet some of these or their own goals, charging infrastructure
gaps, consistently high battery and production costs, and power
capacity constraints resulted in project delays in 2023, all of
which are expected to persist for several years.
"At Volvo Trucks, we are committed to providing total
transportation solutions with an electromobility ecosystem of
support for our customers who choose the VNR Electric, the class
leading zero emissions truck in the market,” said Keith Brandis,
Vice President, Partnerships and System Solutions, Volvo Group
North America. “We are also working on developing future
technologies such as fuel cell electric vehicles and improving the
efficiency of the internal combustion engine running on renewable
diesel and hydrogen. Through partnership and industry
collaboration, we can make a quantum leap forward in sustainable
transportation."
“Our goal is to reduce carbon across the future energy economy.
To do that, we need to keep innovating and looking for viable,
lower-cost solutions,” said Andy Walz, President of Chevron
Americas Products. “Economics matter and we need many different
solutions, evaluated on their lifecycle carbon intensity. Policy
support should drive toward reducing carbon intensity, following a
technology agnostic approach.”
This year’s brief offers clarity for the industry on
developments in the markets for renewable fuels and electricity
paired with diesel, near-zero, and zero-emission vehicles with the
following key findings:
- Among fleets using efficiency technology and practices in the
annual survey, 63% expect diminishing returns on new investments of
this type going forward.
- Renewable Diesel (RD) consumption increased by 68% in 2023
compared to 2022, with most consumption occurring where favorable
carbon credit markets ensured price parity with diesel.
- The price of the highest blend of biodiesel (BD) commonly used,
B20, dropped 9% to $3.25 per diesel gallon equivalent
(DGE).
- Retail price of compressed natural gas (CNG) averaged 50% less
expensive than diesel in 2023 at $3.04/DGE.
- Fleets using CNG met 70% of their fueling needs with renewable
natural gas (RNG) on average in the annual State of Sustainable
Fleets fleet survey.
- RNG producers opened more than 150 new facilities while
maintaining a queue of at least 300 projects in 2023.
- The carbon intensity of RNG on California’s Low Carbon Fuel
Standard market improved 21% between 2022 and the first three
quarters of 2023.
- Production of a lighter and stronger 15-liter natural gas
engine begins in 2024, expected to open opportunities for many more
fleets and lead significant growth in natural gas vehicle
sales.
- Natural gas–fueled linear generators began operations to charge
battery-electric Class 8 trucks.
- Battery Electric Vehicle (BEV) adoption surged as more than
26,000 buses, trucks, and vans were delivered in 2023, doubling the
number of BEV deliveries made in 2022.
- Commercial cargo vans and pickup trucks made up for 90% of all
BEV deliveries in 2023, 95% of which were dominated by two
manufacturers—Ford and Rivian.
- BEVs account for only 1-2% of all vehicles in the fleets of
early adopters in the annual survey, though 90% of users of this
technology expect their use to increase.
- Multiple fleet-dedicated charging depots opened or were in
construction in 2023 while numerous providers of leasing and “as a
service” vehicle and charging services were announced.
- The U.S. DOE’s historic allocation of $7 billion will fund
seven proposed hydrogen fuel production and distribution hubs
spanning 16 states.
- The average retail price of hydrogen in 2023 nearly doubled
from mid-2022 levels to as much as $36/kg in California.
- The price of propane autogas averaged $1.71 per GGE for private
retail, the most common fueling approach among fleets, compared to
$3.58 per gallon of gasoline at public stations.
Penske Transportation Solutions, Volvo Trucks North America, and
Chevron serve as title sponsors of the 2024 Market Brief. Dana,
Exelon, and S&P Global Mobility serve as supporting sponsors.
All sponsors provide credibility and expertise across numerous
technologies covered in the assessment.
To read the complete 2024 Market Brief and to receive ongoing
updates and analysis from State of Sustainable Fleets, visit
www.StateofSustainableFleets.com.
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About State of Sustainable
Fleets
The State of Sustainable Fleets Market Brief is the leading
source of information on sustainable technology decisions being
made by America's on-road fleets. The annual analysis gathers
real-world data directly from early adopter fleets across the U.S.
to provide deep sector-specific insights into the adoption of
battery-electric, natural gas, propane, and hydrogen fuel cell
electric vehicles and renewable fuels, against a baseline of diesel
and gasoline vehicles. The analysis provides insights into public,
private, and for-hire fleets, including school bus, shuttle,
state/county/municipal, urban delivery, refuse, utility, transit,
regional-haul, long-haul, drayage, and off-road cargo handling
sectors. This first-of-its-kind assessment, developed annually,
includes unique insights into vehicle sale trends, anticipated
vehicle development timelines, real-world infrastructure and fuel
costs, and the growing adoption of renewable fuels. State of
Sustainable Fleets is authored by the clean transportation group of
TRC Companies, formerly GNA.
About Penske
Penske Transportation Solutions is the universal brand for
Penske Truck Leasing, Penske Logistics, Epes Transport Systems,
Penske Vehicle Services, and related businesses. Our businesses
provide innovative transportation, supply chain and technology
solutions to keep the world moving forward.
Visit GoPenske.com to learn more.
About Volvo Trucks North
America
Volvo Trucks North America, headquartered in Greensboro, North
Carolina, is one of the leading heavy-duty truck manufacturers in
North America. Its Uptime Services commitment is delivered by a
network of nearly 400 authorized dealers across North America and
the 24/7 Volvo Trucks Uptime Center. Every Volvo truck is assembled
in the Volvo Trucks New River Valley manufacturing facility in
Dublin, Virginia, which meets the internationally recognized ISO
9001 standard for quality, 14001 standard for environmental care
and holds a dual ISO 50001/Superior Energy Performance
certification at the platinum level, indicating a sustained
excellence in energy management. Volvo Trucks North America
provides complete transport solutions for its customers, offering a
full range of diesel, alternative-fuel and all-electric vehicles,
and is part of the Volvo Trucks global organization.
About Chevron
Chevron is one of the world's leading integrated energy
companies. We believe affordable, reliable, and ever-cleaner energy
is essential to enabling human progress. Chevron produces crude oil
and natural gas; manufactures transportation fuels, lubricants,
petrochemicals, and additives; and develops technologies that
enhance our business and the industry. We aim to grow our oil and
gas business, lower the carbon intensity of our operations, and
grow new lower carbon businesses in renewable fuels, hydrogen,
carbon capture, offsets, and other emerging technologies. More
information about Chevron is available at
www.chevron.com.
Jonah Berg-Ganzarain
State of Sustainable Fleets, TRC Companies
3103413099
jbergganzarain@trccompanies.com