Working for our members: Logistics UK leads cross-industry project on future energy demand

Last year we were invited as a founding member of the newly established industry-government Freight Energy Forum, which aims to support all modes in the transition to net zero by 2050, to create a plan to roll out future industry energy infrastructure and explore solutions to help the freight sector start reducing emissions immediately.

Get involved: Take the Road Freight Energy Demand survey.

The Forum brings together industry and government with senior representatives from the freight, finance and energy sectors. 

We are delighted to have a seat on this Forum, representing the needs of our members in identifying and clarifying the energy infrastructure and solutions required for our industry to reach net zero.

We have been flagging the issues around energy supply and infrastructure for a long time now and understand how important adequate energy supplies are to decarbonise our sector. 

As part of its work, the Freight Energy Forum has set up two workstreams, one to look at the wider decarbonisation challenges facing our sector (Work Stream 2 (WS2)) and Work Stream 1 (WS1), which Logistics UK is leading.

WS1 is a critical new project, looking at the energy demand of road, rail, maritime, air and warehousing across the freight sector and where energy will be required as the sector decarbonises.

The project aims to identify how much energy the freight sector will need, and as it progresses, create a more detailed picture of where and when the energy will be needed. Having this knowledge is of paramount importance when considering development of new energy infrastructure.  

An essential part of the project is collaboration. We are working with other key players within our industry but also those from outside logistics, including finance, energy suppliers and infrastructure providers, working with high level representatives from many organisations.

It is exciting but also crucial to involve all parts of the supply chain and other trade associations, including the Federation of Small Businesses, the Road Haulage Association, the Society of Motor Manufacturers & Traders and the BVRLA amongst others to deliver on this project.     

Why it is important for us to be involved in this project: 

Logistics is committed to decarbonising and has made huge strides in lowering emissions, but there are many barriers preventing further progress. We have just over a quarter of a century until we need to reach net zero – and we can’t just flick a switch on 31 December 2049. It is important for change of this magnitude to be properly planned, thought through, organised and coordinated.

This project is a great example of exactly that. WS1 is not just about road transport; it is looking at all logistics modes and will demonstrate to other sectors the kind of joined-up thinking that needs to be done as the UK moves towards net zero goals.  

With electrification earmarked as the best long-term solution for logistics and energy demand at the heart of this, understanding current demand and where it will be required in the future is essential. Another challenge will be securing grid capacity at operator premises and for the public charging networks, so this project will play an important role in helping map what infrastructure is required, where and when.  

The long-term project outputs will help energy infrastructure providers with their planning and coordination as well as better understand our industry. This information will be used to help guide key, strategic decisions in terms of new infrastructure and planning for future energy needs.   

It is vital that the energy sector coordinates its plans to make sure there is sufficient energy capacity in the right locations and that it is able to meet increased energy supply demands as much of the sector electrifies. Providing an educated estimate of current energy use will help ensure the energy sector understand the scale of the challenge it is facing.  

How we will calculate future energy demand: 

We have agreed two approaches with DfT, one being top-down, using publicly available data and the other is a bottom-up approach, using more detailed empirical data from Logistics UK’s members and partners supporting this project.  

WS1 is all about finding a way of collecting data for energy needs right now. Given diesel is the most widely used logistics fuel (bar a very small number of vans that use petrol), the project aims to total the amount of diesel currently used in the UK by commercial road vehicles and convert this diesel use into energy.

It is important to identify an overall number, which can then be applied to operator’s future plans. With so much continuing uncertainty in the sector in terms of future fuels and knowing when zero tailpipe emission vehicles (including battery electric vehicles and hydrogen fuel cell electric vehicles) will be available, understanding how much energy will be needed to replace diesel is a key element of future energy demand planning. 

Initially, we are gathering evidence through a survey to help us answer this question and calculate a figure representing future energy demand.

The survey seeks to gain a detailed understanding of fuel consumption, the nature of vehicle journeys, electrification plans and wider decarbonisation progress and includes questions on battery electric and hydrogen fuel cell vehicles, as well as usage of low carbon fuels.  

Get involved: 

I really encourage members to fill out the survey and share their insight to help us collect a good sample! The survey is quite short and should only take around 15 minutes. We cannot do the project without engagement from members so thank you to all who have already filled out their details.  

In addition to the survey, we are looking to conduct a series of case studies to gain a more detailed story around decarbonisation, including the barriers and challenges. These will take place during August and September and will supplement the survey findings.  

To complete the survey, please click here and if you are interested in being interviewed as a case study or have any questions about the project, please email me at research@logistics.org.uk.  

Published On: 15/08/2024 14:05:00

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