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Sustainable mobility – Truck Fleet to Zero

Sustainable mobility – Truck Fleet to Zero

Sustainable mobility is one of the automotive megatrends of 2023, if not of the current decade. Environmental protection has never been in the public and political spotlight as much as it is now: During the last World Environment Day, the UN announced its plans for stricter CO2 reduction regulations; many countries, including China and the US, present their plans to promote electric vehicles. In October 2022, the EU Parliament approved a reduction in CO2 emissions from new vehicles of 55% for passenger cars and 50% for light commercial vehicles such as vans and vans by 2030, compared to 2021. By 2035, this reduction must be 100% – meaning new passenger cars and vans must be emission-free. For trucks weighing more than 16 tons, the planned reduction is 30% from 2030; however, it is expected that even stricter regulations will follow.

As a contribution to nature conservation, as a competitive advantage, and for a positive ESG rating, many companies are taking steps to comply with sustainability reporting regulations and CO2 reduction.

For the automotive industry with its car and truck manufacturers and other stakeholders, the new EU targets primarily mean major changes – but also a great opportunity for innovation and radical, sustainable transformation of their own products, services and business processes. German passenger car manufacturers are meeting the challenge of sustainable mobility mainly by further developing the electric motor on the basis of battery and fuel cell technology: Mercedes Benz wants to stop launching vehicles with combustion engines on the market as early as 2030, Opel even as early as 2028.

The example of German IT service provider Bridging IT GmbH shows that the implementation of regulations and the use of sustainable mobility is already possible in the company’s own fleet. As early as 2011, the company began replacing individual combustion vehicles with e-vehicles. By 2015, the company had the largest e-fleet in Germany to date – and it continues to grow.

So far so good. But what about freight fleets? After all, the big hulks on two to four axles have enormous CO2 emissions – with 141.3 million tons of CO2 emissions in 2020, Germany is clearly the EU leader in road transport. And that is anything but sustainable.

Carbon dioxide emissions from road transportation in the European Union in 2020 (Source: https://www.statista.com/statistics/1236750/road-transportation-greenhouse-gas-emissions-eu/)

Truck Fleet to Zero – how a logistics company successfully implements sustainable mobility.

First published at the 44th International Vienna Motor Symposium from 26.4.-28.4.2023 in Vienna in detailed elaboration.

The company Mosolf Transport Solutions GmbH from Kirchheim/Teck shows that it can also be done differently, which is almost climate-neutral. The leading technology and logistics service provider for the automotive industry wants to convert part of its fleet to e-trucks in a comprehensive transformation project. Managing Director Egon Christ now presented the results of the first project phase in close cooperation with Magility GmbH at the 44th International Vienna Motor Symposium.

Impressions from the symposium

Sustainable mobility poses major challenges for logistics companies

The switch to new drive technologies poses countless major challenges: Not only must it be possible quickly and easily – compared to existing diesel technology, a new technology must above all be comparably robust, durable and reliable. Under no circumstances must there be risks in the operational area or disadvantages in competition or costs. In the case of e-mobility, there are additional factors such as the development of an operational and the use of public charging infrastructure, the question of government subsidy programs for the development of these structures and the renewal of the fleet. Operationally, profitability assessments, risk understanding and risk management in the TCO calculation come into play in the technical transformation during implementation. At the same time, the complexity of the change is also influenced by external factors, such as changing vehicle acquisition costs, energy costs that are currently difficult to calculate, and also highly volatile factors such as tolls, tax laws, GHG regulations, and subsidy guidelines.

How transformation can succeed

The design-to-quality model

Due to the complexity of the challenges, Mosolf relied on a structured transformation path that reliably maps, evaluates and tracks the economic and technical challenges. It used a design-to-quality model that evaluates different technologies and energy options and boils it down to the most important parameters.

Sustainable mobility is defined by different parameters

Overall assessment model based on a “design to quality” design (Source: Mosolf/Magility GmbH, 2023)

In order to calculate the total cost of ownership, a total cost model was developed for the acquisition costs and the operating costs. Of particular relevance here are also: the expenses for the charging infrastructure, subsidy programs, deployment profiles, charging, maintenance and wear and tear, as well as taxes, insurance and toll costs.

The results of the overall model revealed overlaps between the technology options over the operating life of the vehicles, which were then used to create a decision matrix. The most important parameter in the cost model for vehicle acquisition costs was the cost development curve for battery technologies – this has the greatest impact on cost reduction. Economies of scale also massively reduce the costs for electric drives and charging technologies.

Sustainable mobility is achieved through battery cost reduction

Cost development curve for battery systems from 2009 to 2030 (Source: Mosolf/Magility GmbH, 2023)

It was clear to see that a clear direction of cost development for batteries has been emerging since 2009. This analysis was based on more than 20 sources and studies.

Further insights were gained, for example, from a dynamic cost calculation. This involved forecasting technologies (diesel, fuel cell and battery electric vehicles) and their potential for the future as well, using various CADRs and CAGRs:

  • different ranges
  • different technologies and architectures
  • available public funding programs
  • emission requirements

Insights into sustainable mobility for logistics companies

Overall, many valuable insights into a transformation process towards the use of battery-powered vehicles were gained in project phase 1:

  1. Dynamic cost considerations allow procurement scenarios to be planned professionally and holistically.
  2. Decision matrices help management to optimize the conversion of their fleets along typical usage periods.
  3. New battery technologies and vehicle architectures will enable further cost reductions.
  4. Significant reductions in charging times can already be achieved with MCS (megawatt charging system) charging technology. Charging technology for trucks weighing more than 16 tons will continue to develop dynamically.
  5. In view of the not inconsiderable challenges, it was essential to support the decision-making process with professional opportunity and risk management, which can provide information about the risks and opportunities of the project at an early stage.

Traditional decision-making processes rarely work well for this type of transformation – modern decision-making processes are more far-reaching and complex, as a wider range of technologies is available and opportunities, potentials and risks have to be assessed. When deciding for or against electric drives and sustainable mobility, companies must also weigh whether to build their own infrastructure or use external options. Government subsidies and the responsibility for entrepreneurial action naturally also play a major role.

The new decision-making process for the transformation to electromobility involves mapping future cost trends using digital twins that anticipate risks and fluctuations in energy costs. Investment costs are strongly influenced by use cases that determine when cost parity is achieved. The level of ambition for transformation can be slow, medium or fast.

Sustainable truck mobility is already a reality today

One thing is certain: business models are now being developed in the direction of sustainability and future viability. At Mosolf, the first step has been taken: The first electric trucks have been procured and the charging infrastructure has been set up. Test operations have begun and the next wave of procurement is being planned.

Would you also like to take the path to sustainable mobility? Our experts will be happy to support you in your transformation project!

Energy efficiency standards in buildings – And why sustainable development is important right now

Energy efficiency standards in buildings – And why sustainable development is important right now

Energy efficiency standards in buildings – And why sustainable development is important right now

Since the beginning of the Industrial Revolution in the second half of the 18th century, economic growth processes have repeatedly been realized at the expense of the environment. The overall continuous growth of the earth’s population also induces the growth of the economy, which in turn drives the demand for resources. This increase in demand is opposed by planet Earth with its limited available resources. If demand continues to grow unchecked, these will not be sufficient to feed a growing population in the long term. According to a study by Madhumitha Jaganmohan, the world’s population is estimated to reach eleven billion by 2100. Given the increasing depletion of the world’s resources, it is crucial to use them wisely. Find out what this has to do with energy efficiency standards in buildings in this article!

energy efficiency

The tool of sustainability helps us adapt strategies in a modern world to boost the economy without depleting natural resources. In September 2015, under the auspices of the United Nations, the 2030 Agenda for Sustainable Development and its 17 sustainable goals – the Sustainable Development Goals (SDGs) – were adopted by all member states. The goals address the global challenges humanity is facing in all areas of life and aim to achieve a sustainable future for all. Various actors are actively contributing to the achievement of the SDGs; one example is impact investing.

The United Nations Framework Conference on Climate Change (UNFCC) hosts the Conference of the Parties (COP) each year. The goal of the annual conference, in addition to promoting sustainable resource-conserving economic activity, is to use a holistic approach to combat climate change, stabilize greenhouse gas concentrations in the atmosphere, and reach an agreement on the time needed to achieve the goals.

What measures are being used to combat climate change?

Global energy-related CO2 emissions totaled approximately 36.44 billion metric tons in 2019, a significant increase over the pre-industrial era. However, forecasts for 2020 show a significant decrease in emissions due to the impact of COVID-19. The Asia-Pacific region was the largest producer of CO2 emissions in 2019. To reduce carbon dioxide production, several countries have begun issuing tradable green certificates. Carbon pricing is considered one of the most effective ways to encourage companies to reduce emissions and promote more sustainable production. In addition, increasing energy production from renewable energy sources is seen as another way to reduce carbon emissions.

Reducing energy consumption and curbing energy waste are of increasing importance to the EU. In 2007, EU policymakers set a target to reduce the Union’s annual energy consumption by 20% by 2020. In 2018, the Clean Energy for All Europeans package set a new target to reduce energy consumption by at least 32.5% by 2030. Energy efficiency measures are increasingly recognized as a means not only to achieve sustainable energy supply, reduce greenhouse gas emissions, improve security of supply and reduce the cost of energy imports, but also to improve EU competitiveness. From a strategic point of view, energy efficiency is therefore of particular importance for the Energy Union and the EU promotes the principle of “energy efficiency first”. Currently, the future strategic framework for the period after 2030 is being discussed.

Energy efficiency standards in public buildings 

Currently, the Commission is asking Member States to set national indicative targets for reducing energy consumption, introducing strengthened automatic mechanisms to close the gaps, and doubling the obligation for Member States to achieve new annual energy savings of 1.5% of final energy consumption between 2024 and 2030. It also introduces exemplary requirements for public buildings, such as the target to reduce energy consumption in the public sector by 1.7% annually and the target to renovate at least 3% of the total area of public administration buildings. It also proposes to reduce energy poverty by giving priority to vulnerable customers, and to introduce audit obligations and technical competence requirements, especially for large energy consumers. Energy poverty in particular could be a major problem in the future if not countered: The expected price explosion for electricity and gas may become an existential problem for millions of EU citizens.

The most important standards for energy efficiency

The German government uses two instruments to promote energy-efficient construction: Grants via the KfW Bank or the Federal Office of Economics and Export Control (BAFA) and the requirements of the Building Energy Act (GEG). These two instruments result in the most important standards for energy efficiency:

KfW Efficiency House or Energy Efficiency House

The term “Efficient House” is a quality mark developed by the Deutsche Energie-Agentur GmbH (dena) together with the Federal Ministry of Transport, Building and Urban Affairs (BMVBS) and the Kreditanstalt für Wiederaufbau (KfW). KfW uses this quality mark as part of its “Energy-efficient construction” and “Energy-efficient refurbishment” funding programs. A KfW Efficiency House is distinguished between different categories (e.g. KfW 100, KfW 85, KfW 70, etc.). These indicate the maximum percentage value of the primary energy demand of the reference building calculated in the GEG. A KfW 100 house thus corresponds to a GEG new building. A KfW-85 house may have a maximum of 85% of the primary energy requirement of the reference building. With the introduction of federal funding for efficiency houses, the standards will remain largely unchanged. However, the designation will then only be Effizienzhaus.

Zero energy house

This building standard refers to the annual energy balance of the building. In the annual balance, a zero-energy building must compensate for external energy purchases by generating its own energy (e.g., through photovoltaics or combined heat and power). The less heating and household electricity the household requires, the less electricity has to be generated by technical systems.

Energy Plus House

Over the course of a year, an energy-plus house generates more energy than it consumes. In addition to the heat demand for heating and hot water, household electricity is also taken into account. To meet these high requirements, highly efficient household appliances are needed in addition to a high-quality building envelope and efficient systems engineering. Theoretically, however, no electricity storage is required: the electricity grid is considered a seasonal “store” in both the Energy Plus House and the Zero Energy House. However, in order to increase independence and ensure climate-friendly decreasing energy costs, the acquisition of such a storage unit is very often worthwhile today. The Efficiency House Plus is similar to the Energy Plus House, with the difference that in the former a fixed household current is specified.

Passive house

Passive houses cover most of their heating needs from passive energy sources such as solar radiation and internal heat sources (waste heat from household appliances and people). They are heavily insulated and very tightly built, have large, south-facing window areas and require a mechanical ventilation system with heat recovery. According to the definition, the low heating requirement of max. 15 kWh per square meter and year can be covered by the hygienic air exchange (air heating) that is necessary anyway. Nevertheless, conventional heat generators and heat transfer systems such as radiators or underfloor heating can also be used as long as the prescribed renewable primary energy demand of 60 kWh/m² is not exceeded. Household electricity is also taken into account in the evaluation of the primary energy demand.

Energy self-sufficient house

In contrast to zero-energy and energy-plus houses, energy-autonomous houses achieve a high degree of independence not only in balance sheet terms: they actually cover a large part of their energy requirements themselves. This is made possible by seasonal heat and power storage systems that make surplus energy from the summer months available into the winter. Energy-saving envelope surfaces, large storage masses in the building and energy-efficient household appliances are also important.

Low energy house

The low-energy house is a catchy term that is neither protected by law nor defined by standards and is used by solid and prefabricated house manufacturers primarily for advertising purposes.

The energy-saving 3-liter house

3-liter houses are buildings that require only about 3 liters of heating oil per square meter per year. This corresponds to a final energy demand of around 30 kWh/m² and year.

GEG building/reference building

According to the current version of the Building Energy Act (GEG), a building-specific primary energy requirement and an average U-value must not be exceeded in new buildings and energy-related renovations. The reference building is one way of calculating these limit values.

Funding landscape of energy efficient buildings

The promotion of energy-efficient buildings is a central point in the federal government’s energy concept. As part of the decisions of the 2019 Climate Cabinet and the Federal Climate Protection Act (KSG), the conditions were made more attractive and the subsidies were increased. This has triggered strong momentum, which has been reflected in the number of applications for the funding programs in recent years. Further transformations are on the horizon with the gradual introduction of the federal subsidy for efficient buildings (BEG). This will combine and expand existing subsidy programs such as the CO2 Building Renovation Program and the Market Incentive Program, so that in future only one application per building project will be necessary. The aim of the BEG is to contribute to reducing greenhouse gas emissions in the building sector to 70 million metric tons of CO2 equivalents in 2030, whereby the subsidy is only one component of the greenhouse gas reduction and further tightening by EU requirements is also conceivable.

It therefore remains exciting to what extent energy standards will continue to develop in the future. We at magility will keep an eye on further developments for you.

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