THE pathway to lowering truck emissions is facing serious obstacles with ‘commercial challenges’ identified as the key stumbling block to adopting alternative power plants.

This is the view of a recent report from the Commonwealth Bank of Australia called: “The early stages of lowering truck emissions. Challenges and Opportunities”, which said the uptake of alternative motive power in trucks in Australia has been slow. 

The report said that heavy commercial vehicles account for only three per cent of registered vehicles yet they contribute to 27 per cent of road transport emissions in Australia.“Decarbonizing trucks can involve changing fuels and replacing diesel engines with vehicles powered by hydrogen or batteries,” the report said. 

“The pace of electric truck uptake is low in Australia and globally, because of both technological and financial hurdles. The price of renewable diesel is 1.5 to 3.2 times more than conventional diesel (although it produces 60 to 80 per cent fewer emissions). 

Similarly, the cost of electric trucks can be more than twice the equivalent diesel trucks and far more for hydrogen trucks. 

The report pointed out that electric truck payloads are lower because the weight of the battery pack with a conventional diesel B Double truck payload of nearly 40 tonnes compared with the electric equivalent of 20 tonnes. So twice the price for half the payload.

Some truck segments are more ready for electrification than others,” the report said. 

“For instance, there are viable technological options for trucks that carry smaller loads, drive short distances and can return to base for overnight charging. Major logistics companies and freight operators in Australia have begun trialling battery electric trucks with such use cases in mind.

“However, freight transport is highly diffuse; 98 per cent of truck owners are privately owned or small businesses. Therefore, addressing options to overcome the commercial challenge of adopting electric trucks (for this very diverse group of truck operators) is likely to be a focus for both policy makers and industry. 

Finding low emissions solutions for Long Haul Trucking is seen as being very hard to achieve with no immediate commercial solutions available although the report suggested that a combination of renewable diesel battery electric trucks and hydrogen powered trucks as viable technology options. 

“Hydrogen, which is lighter per energy output than batteries, was seen to be the most viable option to decarbonise long haul trucks. However, with rapid advancements in battery technology in passenger vehicles and in aviation, we consider a role for hydrogen has now narrowed.” 

The report said that policy support and certainty has played an important role in countries where truck decarbonization is higher.

“For example, Chinese government policy offering financial incentives to scrap old trucks has spurred electric truck sales. 

“The dominance of one battery supplier, combined with policy support, has also helped establish battery swapping stations in China. 

Freight transport is highly diffuse; 98 per cent of truck owners are privately owned or small businesses. – Commonwealth Bank report

“Trucks can have their batteries swapped in less than 10 minutes, compared to charging that can be extended over several hours. Half of new battery electric duty trucks sold in 2023 in China had battery swapping capabilities.” 

But, the report said, for 98 per cent of private and small business truck operators, options for immediate electrification may be limited. 

“The ideal outcome to ensure a sustainable transition would involve solutions that:

1. lower emissions
2. are fit for purpose, 
3. are affordable, 

“Currently in vehicles segments like light trucks, where lower emissions and fit-for-purpose are being met, affordability is the biggest hurdle.

“In the absence of a consumer appetite to pay more for sustainable trucking, and government policy to subsidize costs, we consider the uptake of sustainable trucking will be low for now. 

“However, development of low cost trucks means vehicles overseas could eventually be imported into Australia. Unlike Europe and the US, Australia’s vehicle market has a clear advantage in being able to openly import vehicles across different markets. 

For now, observing the developments in these markets may be a passive but necessary option.

Footnote: Heavy commercial vehicles are highly diverse, with a variety of configurations, body types and use cases. 

Most heavy commercial trucks are used to transport freight. 

Thirty to 40 per cent of freight movements occur in urban areas. 

The B-double truck plays an important role in road freight. According to the latest available estimate, the B-double accounted for 40 per cent of freight moved in Australia. 

Currently, zero-emission trucks using hydrogen and battery technology have yet to match the performance levels in terms of payload and range. However, advancements in low-emission technology could help reduce this gap.

Low-emission trucks with lower distances are starting to be adopted by corporations in the logistics and freight industry. These zero-emission trucks are typically designed for return-to-base charging at depots, have a range of up to 300 kilometres and a payload capacity of up to 18 tonnes.