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One Line Haul truck requires as much electricity as 60 pick-up and delivery vans due to higher mileage and average electric consumption

Source: DHL (2024)

Relevance to the Future of Logistics

Charging Infrastructure for Electric Trucks

Electrification of long-haul heavy-duty transportation is an important lever for reducing carbon emissions in logistics, and all major truck manufacturers now offer fully electric trucks. However, the existing infrastructure for these vehicles is insufficient in many places. These trucks need DC fast charging facilities to keep charging times below 1.5 hours, but expanding the charging infrastructure to provide rapid charging is restricted by high costs, limited grid capacity, and associated power peaks. Electric trucks will massively impact future electricity consumption. For example, one DHL linehaul truck requires as much electricity as 60 pick-up and delivery vans due to higher mileage and average electric consumption.

Battery swapping as a bridging solution can compensate for unsatisfactory charging speeds. The Chinese battery manufacturer and technology company CATL has released a battery-swapping solution for heavy-duty electric trucks. This system, called Qiji Energy, consists of exchange stations, battery packs, and a cloud platform. The battery-swapping process is said to take only a few minutes.

Alongside innovations like these, there are government initiatives to improve the electric truck charging infrastructure. The US trucking-as-a-service startup WattEV will build three electric truck-charging depots in California using US$ 75.6 million in federal grants. All three depots will include solar panels and battery storage to provide clean power and reduce their hefty draw on power grids.

Distributed Energy Resources

Small-scale energy resources, such as solar panels, wind turbines, and energy storage systems that are usually situated near sites of electricity use are referred to as distributed energy resources (DERs). They can help logistics organizations reduce the carbon footprint and cut energy costs by generating electricity onsite, reducing reliance on grid electricity.

DERs create new power system opportunities but also new challenges, particularly when a grid has not been properly prepared. Many organisations have installed rooftop solar panels, which have proved highly effective and some organizations are using small wind-power systems. However, utilization is likely to increase as new, more cost-effective solutions become available.

For example, the US startup Aeromine Technologies has developed a bladeless wind energy solution for rooftops that captures and amplifies wind as it strikes the side of a building, accelerating its flow over a flat roof. The wind passes through a pair of aerodynamic fins (similar to those on a race car) to maximize wind speed. As it passes through, the wind creates a vacuum at the base of the unit, which spins an enclosed propeller and generates power.

Meanwhile a startup in Spain, Vortex Bladeless, is developing a new wind power-generating technology without blades, gears, or shafts, encouraging a new urban opportunity for wind power. Instead, the light cylindrical machines oscillate perpendicular to the wind stream, creating an aeroelastic resonance in which energy can be harnessed from the wind.

On-site energy storage is a challenge for companies using solar panels or wind power solutions for their facilities and buildings, but so-called gravity batteries like those from the British company Gravitricity offer an innovative solution. When there is a surplus of green energy, gravity serves as a storage device by pulling a weight upwards via electric motors and, as soon as demand increases, for example at night, this weight can be lowered to release the stored energy.

Logistics Hubs As Power Distribution Centers

The electricity grid is evolving from a traditional one-way flow of energy to a future power market where everyone can generate and consume energy. And this goes beyond installing DERs to generate clean energy onsite; it also includes the ever-increasing installation of onsite charging stations for electric cars, vans, and even electric trucks. In the near future, this will also include vehicle-to-grid (V2G) technology allowing EVs to not only consume electricity from the grid but also supply electricity back to the grid. In essence, it allows EV batteries to serve as energy storage devices that can be utilized to support the stability of the electricity grid.

With these changes, logistics centers will ultimately become virtual power plants and storage facilities connected to the grid system. Future energy management systems must consider issues such as the size of the grid connection (average and peak power consumption of the electrical loads that will be connected to the grid), the AC/DC charging infrastructure (charging power, energy needed for given number of vehicles), and the sizing of the DERs (number of solar panels or capacity of energy storage).

Although this future demand for energy management will require technological advancements and grid investments, it will also open up new opportunities. Examples include the opportunity for energy trading in the electricity market (if permitted) to generate additional revenue by optimizing energy usage, generation, and storage, and by providing energy to the market when needed and demand energy when there is overcapacity.

As power distribution centers, logistics organisations can collaborate and partner with energy companies, local governments, and other stakeholders to develop innovative energy solutions. This can involve exploring shared energy infrastructure, joint investment in renewable projects, and participating in energy exchange programs.

Challenges

Challenge 1

The expansion of the renewable energy infrastructure involves multiple stakeholders and many regulatory frameworks, so effective coordination and planning are required.

Challenge 2

The implementation of V2G and smart energy management necessitates the presence of advanced smart grids, which are currently lacking.

Challenge 3

The realisation of large-scale infrastructure projects span over several years.

Challenge 4

Developing renewable energy infrastructure often requires high initial investment, which is a major hurdle for project implementation and scaling.

Challenge 5

Logistics relies on governments and their policies to ensure grid stability, as the intermittent nature of renewable energy sources puts strain on the grid.

The expansion of the renewable energy infrastructure involves multiple stakeholders and many regulatory frameworks, so effective coordination and planning are required.
The implementation of V2G and smart energy management necessitates the presence of advanced smart grids, which are currently lacking.
The realisation of large-scale infrastructure projects span over several years.
Developing renewable energy infrastructure often requires high initial investment, which is a major hurdle for project implementation and scaling.
Logistics relies on governments and their policies to ensure grid stability, as the intermittent nature of renewable energy sources puts strain on the grid.

Outlook

Renewable power generation and vehicle electrification are further expanding and, with this, there is greater need for a capable infrastructure. This foundation is particularly important for logistics organisations, with their growing fleets of electric vehicles and as they increase onsite power generation and storage systems. Today's renewable energy infrastructure and especially the electricity grid are not yet up to the demands of tomorrow in most parts of the world. However, expansion requires government commitment and investment and always takes place over a long period of time.

This trend should be ACTIVELY monitored,with developments and use cases on the horizon.

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Sources

  1. McKinsey (2024): Global Energy Perspective 2023: Power outlook