INFRASTRUCTURE INVESTMENT FOR MHD EVS WOULD BE $ 1 TRILLION
Report :
INFRASTRUCTURE INVESTMENT FOR MHD EVS WOULD BE $ 1 TRILLION
Full electrification of the U . S . commercial truck fleet would require nearly $ 1 trillion in infrastructure investment alone , according to a new report from Roland Berger released by the Clean Freight Coalition . The study forecasts an infrastructure buildout for the electrification of medium- and heavy-duty commercial vehicles , and reveals what the CFC called “ a massive investment gap ” as state and federal policymakers mandate increased adoption rates of battery-electric commercial vehicles . Key findings :
■ Preparing today ’ s commercial vehicle fleet for electrification would require the commercial vehicle industry to invest upwards of $ 620 billion in charging infrastructure alone , including chargers , site infrastructure and electric service upgrades
■ Utilities would need to invest $ 370 billion to upgrade their grid networks to meet the demands of just commercial vehicles
■ This nearly $ 1 trillion expenditure does not account for the cost of new battery-electric trucks , which according to market research can be two to three times more expensive than their diesel-powered equivalents . For example , a diesel Class 8 truck costs roughly $ 180,000 , while a comparable battery-electric truck costs over $ 400,000 . The CFC , which consists of transportation stakeholders across the trucking and motorcoach industries , says that policymakers must address these cost concerns and infrastructure hurdles to make an electrified supply chain function smoothly for the U . S . economy . The study found that while medium-duty vehicles will face fewer roadblocks , economic and operational constraints make electrification very challenging for the heavy-duty segment . The study outlined improvements in battery range and charging infrastructure capabilities that would be needed to support a path for the electrification of long-haul vehicles .
Utilities would need to invest $ 370 billion to upgrade their grid networks .
“ Electrification means focusing on the vehicle segments that are easier first ; it means that we have to look at how fleets operate and potentially adjust ; it means that we need better cooperation and planning across industries and governments ; and it requires an openness to alternative technology paths to decarbonizing the heavy-duty segment ,” said Roland Berger Senior Partner Dr . Wilfried Aulbur . “ It also is clear that an industry with a yearly turnover of about $ 800 billion and a profit margin around 5 % cannot invest $ 620 billion without financial support or a significant increase in freight rates .”
Roland Berger is an international management consultancy that operates 51 offices in major markets . The Clean Freight Coalition is an alliance of transportation stakeholders committed to a clean energy future for the commercial vehicle industry in the U . S . Participating associations span motor carriers of every size and sector , truck dealers , truck stop operators and the bus industry . Learn more at www . cleanfreightcoalition . org .
About the cost of supply chain electrification , American Trucking Associations President and CEO Chris Spear said , “ We ’ re
facing an unfunded , $ 1 trillion mandate that carries enormous consequences for the American consumer . You don ’ t overcome obstacles by ignoring them , which this study lays out the high investment costs required to electrify the commercial vehicle industry . Policymakers should take note that pursuing technologyneutral solutions can deliver operational savings and emissions reductions at a fraction of the cost . A real-world understanding of the path to our shared goal of zero emissions is needed , but unrealistic timelines and expectations will break the bank .”
American Truck Dealers President Laura Perrotta said , “ America ’ s commercial truck dealers have made enormous investments to sell and service EVs – nearly $ 1 billion in this decade . Unfortunately , dealers are faced with inadequate charging infrastructure , delays when installing chargers due to parts shortages and utility workload challenges , and unaffordable upgrades required to meet new electricity demands . This study puts into perspective the enormous national commercial charging needs and related costs required to meet the Administration ’ s regulatory goals .”
National Tank Truck Carriers President and CEO Ryan Streblow said , “ The eye-opening report released today by Roland Berger on forecasting a realistic electric infrastructure across our nation to support the trucking industry reinforces the tank truck industry ’ s concerns on the current aggressive and unrealistic regulatory approach to zero emissions . We will continue to face major electrification concerns in the tank truck industry - excess weight , limited range , and safety .” l FON www . fueloilnews . com | FUEL OIL NEWS | MAY 2024 29