Set against the backdrop of myriad challenges – geopolitical conflicts, soaring energy prices and disruption to global supply chains – Logistics UK held Delivering Decarbonisation on 21 November 2023, a conference focused on what the sector needs to do to reduce its greenhouse gas emissions.
The event brought together industry-leading experts and academics in London, where they were joined by keynote speakers including; Lord Callanan, Minister for Energy Efficiency and Green Finance and Dr Alistair Barnes, Innovate UK. Sponsored by Equans and Port of Dover, the one-day event covered a range of topics from HGV operations, public charging infrastructure to the role of government and alternative fuels.
HOW GOVERNMENT IS SUPORTING BUSINESSES
Dr Alistair Barnes, Senior Programme Manager – Land & Maritime Transport, Innovate UK, delivered the first keynote, outlining the government funding streams available for zero emission road freight.
On trials and initiatives, Barnes admitted many of these were at an early stage. However, they are necessary to get the sector where it needs to be to realise net zero ambitions.
Barnes encouraged delegates to engage with the various projects and trials – particularly, the option to apply for a rare five-year pot of funding as part of the recently announced Advanced Manufacturing Plan.
HOW TO APPROACH DECARBONISATION OF HGV OPERATION
The first panel was chaired by Kevin Green, Director of Policy and Communications at Logistics UK, who was joined by panellists Olly Craughan, Head of Sustainability, DPDgroup UK; Russell Fowler, Senior Manager Decarbonisation of Transport, National Grid; Brian Robinson, Commerical Vehicle and Sustainability Expert, ZEMO Partnership; and Malcolm Wilkinson, Head of Energy, National Highways. The panel discussed immediate changes to operations in an attempt to reduce emissions, as well as what needs to happen next.
Hydrotreated vegetable oil (HVO) was identified as a favourable fuel for immediate reductions in emissions. On electrification, Fowler observed that a key aspect of the transition to decarbonise is the need for less energy overall, but more electricity. Whether we are able to run an electricity system on fossil fuels by 2035 remains to be seen, but resolving the challenge around storage and dealing with intermittent supply from renewable sources is crucial.
NET ZERO ROAD FREIGHT
Alan McKinnon, Professor, Kuehne Logistics University, gave a keynote speech with an international outlook on net zero road freight transport.
He delivered a sobering message – that globally road freight transport represents around 6.4% of all McKinnon, who is currently Professor of Logistics at Kuehne Logistics University in Hamburg, said: “If road freight transport were a country, it would be third in the emission league table after China and the US, so that gives you an idea of how much CO2 this activity emits.”
On average, CO2 emissions from HGVs increased by 2.7% per annum, between 2000 and 2019, according to the International Energy Agency. Emissions from the road freight sector would have to reduce by 1.7% per annum, between 2022 and 2030 for it to get onto a net zero trajectory.
“It’s going to be incredibly difficult to achieve that clearly,” McKinnon said, “partly because it’s also projected that road freight movement will increase by around a third globally by 2030, and of course the new low carbon technologies are not going to kick in during this decade to any great extent.”
If the previous trend over the past 20 years continues and is factored forward to 2030, that would mean an extra 7.7 billion tonnes of CO2 into the atmosphere, above the net zero target.
Taking the global perspective, the International Transport Forum’s model shows that the fastest growth in road freight emissions was coming from the developing world.
“The global market in used trucks is going to have to change because less developed countries currently buy second-hand vehicles from Europe and North America,” McKinnon said, “My worry is that as we accelerate the energy transition in Europe and North America, there will be dumping of a lot of diesel vehicles into the third world, which will then prolong their energy transition in the future.”
MINISTERIAL KEYNOTE
Lord Callanan, Minister for Energy Efficiency and Green Finance delivered the third keynote speech.
“Like many other industries, as we steadily transition to a net zero economy, [logistics] faces one of the biggest challenges,” the minister said, “which is, of course, the need to decarbonise. And we don’t underestimate the size of that challenge.”
Determined to help the sector to become more sustainable, the government is pledging £200 million worth of investment to get more zero emission trucks on the roads, and £7 million worth of funding through the Cross-Modal Freight Innovation Fund to support SMEs to trial greener and more efficient solutions.
Concluding, the minister said: “The one thing that I would really like you to take away from today is the importance of collaboration, something you will know very well in logistics. We know that this is a massive challenge and it cannot be solved by government or by one sector alone.”
VIEW FROM THE OEMS
Kevin Green chaired the second panel session of the day, looking at the perspective of OEMs on the transition to decarbonise, where he was joined by panellists Dave Petts, Ford Pro EV & Connectivity Manager, Ford Motor Company and Andrew Scott, Head Electromoblity and Product Development, Renault Trucks.
On alternative technologies such as hydrogen or electric road systems, the view was that they can all play a part, but economic challenges remain. In the UK, there is not a ‘onesize-fits-all’ solution and so there is a need to invest across a range of technologies.
Both panellists were in favour of battery technology and when asked what more government or regulators can do to speed up the transition, responses focused on addressing the challenge of charging infrastructure and vehicle range.
CREATING A NET ZERO PORT
Megan Turner, Environment and Sustainability Manger at the Port of Dover gave an insightful presentation on the ways in which the port is decarbonising its operations.
Having started measuring its carbon footprint since 2007, they have set the target to be net zero emissions for Scopes 1 and 2 by 2025.
So far, initiatives the port has undertaken include only purchasing Renewable Energy Guarantees of Origin (REGO) electricity since October 2016, using solar on port buildings,
fuelling all landside plant, machinery and generators with HVO since 2022, as well as looking at installation of electric vehicle charging points. On addressing the bigger piece to the puzzle, the 75% of emissions that go from Dover-Calais and Dover-Dunkirk, Turner explained how after securing funding from DfT and Innovate UK, through the Clean Maritime Demonstration Project, Port of Dover looked at the techno-economic feasibility of electric power ferries.
CREATING YOUR EV ADOPTION STRATEGY
The final session before lunch was a best practice session, looking at creating an electric vehicle adoption strategy. Dee Humphries, Director, Equans EV Solutions and Tim Campbell, Campbells Consultancy joined the panel.
With a host of experience between them, Campbell and Humphries shared stories on EV adoption and how it has matured over the years.
Advice for operators included starting with a roadmap now. Dee suggested starting with the vision: “With technology moving so quickly, what you need is vision of where you want to get to, with some sensible revision points.”
BUILDING THE NEW INFRASTRUCTURE
Following a networking lunch, a further panel discussed the infrastructure required for HGV decarbonisation.
Matt Pumfrey, CEO, Innovation Gateway, who chaired the session, said: “You in logistics are facing a real challenge, but it is a challenge that is faced by lots of other sectors […] and let’s be clear, nobody has cracked it yet.”
Panellists were David Brown, Managing Director, MRCT; Nick Graham, Head of External Networks, Eddie Stobart; Nick Head, Head of Sustainability – UK and Ireland, XPO Logistics; and Anthony Humble-Smith, Group Sustainability Lead, Gregory Distribution. Picking up on efficiency, Graham said Stobart was working hard to maintain efficiency, whilst lack of access and lack of infrastructure were key frustrations.
Humble-Smith was of a similar view: “The biggest challenge facing us is infrastructure, particularly around electrification.”
OTHER MODES AS PART OF THE DECARBONISATION JOURNEY
Michelle Gardner returned to chair the next session, bringing in the perspective from other modes as part of the decarbonisation journey. Panellists were Paul Farr, Head of Ground & Rail, CEVA Logistics and John Trenchard, Commercial and Supply Chain Director, UK, DP World.
When asked on their top asks for the government, responses included more low carbon infrastructure, flexibility, regulation and clarity.
On innovations driving the shift, Trenchard highlighted innovation around commercialisation and business models, whilst Farr underlined the need to view freight more holistically, through the lens of a combined freight model.
HOME AND PUBLIC CHARGING INFRASTRUCTURE
Denise Beedell, Senior Policy Manager at Logistics UK, chaired this lively discussion. She was joined by Rob Fowler, Fleet Director, Royal Mail and Ashley Tate, Managing Director, Allstar Chargepass UK.
The conversation turned to capacity issues around depot charging, the constraints around home charging, motorway service stations, and touched on security of vans, driver feedback to electric vehicles and vehicle maintenance.
ALTERNATIVE FUELS ‘KNOW HOW’
The final session of the day was chaired by Michelle Gardner, who asked each panel member to make their introductory remarks: Tim Bennett, General Manager, Shell TapUp UK; Ian Foster, Director of Engineering Strategy, Metroline Ltd; Norman Harding, Corporate Fleet Manager, London Borough of Hackney; and Steve Tainton, Head of Sustainability, Wincanton.
With many alternative fuels now in the mix, the panel, who represented a range of stakeholders including a bus operator and a local authority, tackled a number of questions on their uses, sharing successes and also anecdotes on trials and error.
CLOSING THOUGHTS
Reflecting on the day’s packed agenda, Gardner said: “The word collaboration clearly came throughout the day and I certainly see that in our work at Logistics UK and our members sharing
learnings and willing to help each other on this journey to decarbonise. The opportunities are there and I think it’s really good that we have had that reminder that it is not just about the big things, it is the small things as well and that’s a really important message for the SMEs out there. That there are things that they can be doing. It’s not just about switching to the zero emission technology which is really challenging at the moment. Clearly there are those challenges and we need to make sure that we continue to say those to government and others so please do continue to keep working with us and Logistics UK as we continue to champion the sector.”