Volvo Trucks are testing the California market
The vehicle maker Volvo is now driven to rollout electrically-fueled heavy-duty trucks — the kind that makes short runs. It’s part of an effort by the state of California to help clean up air pollution and specifically in Los Angeles. Up first: about two dozen trucks with the accompanying charging stations.
Specifically, the California Air Resources Board is investing $45 million. The money will be used by Volvo Trucks and 14 others to advance electric transportation and to promote zero-emissions technologies. Those private businesses are contributing the same amount of money, all to accommodate what they believe will be strong demand — one motivated by cheaper operational and maintenance costs along with mandatory rules to reduce harmful air emissions.
“This project aligns with our core values as a company, which are about safety and care for the environment,” says Keith Brandis, vice president of partnerships and strategic solutions for Volvo Group, in a talk with this writer. “It is a business and as such, it has to be reasonable: anyone can build a prototype in the garage. But we will not deliver the trucks until we have the complete system in place, which includes the technicians. electrical infrastructures.”
Right now, Volvo has five electric trucks in southern California, with another three soon to arrive. They are more expensive than traditional trucks that run on the internal combustion engine and that run on diesel fuel. But over time, they will pay for themselves. Not only do they not use fuel, but they also do not have as many components and thus, they cost less to maintain.
The batteries that run those electric trucks are also getting better and cheaper. The newest lithium-ion batteries have 20% more density, allowing the trucks to go at least 150 miles in a given day without having to be recharged. In comparison, long haul electric trucks can go at least 300 miles while cars can travel at least 60 miles.
The trend can’t happen quickly enough. The transportation and electricity sectors account for more than half of all greenhouse gas emissions in the United States. And in 2016, CO2 concentration levels had surpassed the 400 parts per million threshold, which is the red line where climate scientists say that the ecological impacts of warming are irreversible. The National Oceanic and Atmospheric Administration says that they are at 416 parts per million as of May 2020.
“There are the same parallels as solar, which is a lot of interaction between the government and the private sector to drive this forward and gain scale,” Bob Stojanovic, director of electric vehicle infrastructure North America at ABB, which is creating the software programs and the hardware to build out the needed charging infrastructure. “Once this is achieved, then those incentives are not needed. The cost will come down because of the scale. And it is self-perpetuating.”
Charged Up
Volvo electric truck is making a delivery
The ABB executive told this reporter that there are now four sites with a dozen chargers each, all in the Los Angeles area. The goal is to grow, which is contingent not just on the demand for those electric trucks but also on the supply chains. For example, Edison International
So, it is not as easy as just building the trucks and creating the charging stations. That said, Stojanovic has an upbeat view of market potential: the electric vehicle segment, generally, is growing at 35% a year, he says, which has the potential to double once the technology is proven and is scalable. Wood MacKenzie says that electric batteries will hit an inflection point in 2027 while Bloomberg New Energy Finance points out that such prices have fallen by 87% since 2010.
To be sure, Volvo says that it will continue to sell trucks that run on diesel fuel and that it expects this market to remain strong; the infrastructure to operate and maintain it is viable. There are also natural gas-fueled trucks, which need to have their oil changed more often than diesel: Liquefied natural gas is best used with heavy trucks while compressed natural gas is used to power corporate fleets.
That’s the beauty of the free market — that it can make room for multiple contenders and ultimately, the best technologies will prevail. In the case of Volvo, it says that the delivery trucks with which it is working are Dependable Supply Chain Services and NFI. Similarly, logistics company UPS is working with Tesla
“We are optimistic about what we can do with these technologies,” says Volvo’s Brandis. “We can bring all parties to the table. The trucking industry embraces change and it will innovate.”
The automotive sector is not complacent. It is addressing both the market and regulatory pressures, which want to see those manufacturers build high-quality, clean vehicles. But it requires work — more than just waving a magic wand. It means creating an electrical charging infrastructure and a distribution network that can fuel the demand. If Volvo’s tests prove fruitful, the electric vehicle industry would be much further down the road to success.
