From Our Print Edition

Walmart has been at the forefront of the grocery industry, testing and deploying trucks that run on alternative fuels.

Major grocery chains along with their logistics and trading partners are investing in and testing alternative fuels that one day may drive their fleets from the first mile to the last. Getting to zero-emission truck fleets won’t happen overnight, but the time is drawing nearer as companies continue to evaluate technological advancements in engines and test vehicles that run on diesel alternatives, propane, natural gas, hydrogen and electricity.

Government intervention is playing a driving role in the transition to alternative fuels. California’s Advanced Clean Fleets (ACF) rule requires medium- and heavy-duty truck fleets to transition to zero-emission vehicles by 2035. However, the U.S. Environmental Protection Agency’s Clean Trucks Plan includes emission goals that cannot currently be reached by more than three-quarters of heavy-duty trucks on the road, underscoring the need for better alternative fuel options.

WHAT’S THE ALTERNATIVE?

The list of retailers engaging to various degrees with alternative fuels continues to grow as use cases within and beyond the grocery and consumer packaged goods industries are demonstrated. Albertsons, Aldi, Amazon, Giant Food, Kroger, Meijer, Walmart, Wegmans and Whole Foods are just some grocery retail companies reportedly on this path.

Annual registrations of heavy- and medium-duty trucks by drivetrain type show battery-electric commercial vehicle (BEV) registrations nearly doubled between 2022 and 2023 as investment dollars flowed in and state and federal governments set purchasing mandates, according to the “State of Sustainable Fleets 2024 Market Brief” prepared last May by TRC Companies, Santa Monica, Calif. BEVs have been utilized more for last- and middle-mile roles within retail supply chains as range remains a concern. The outlook for widespread use of BEVs is further clouded by high battery and production costs.

Registrations for propane and natural gas-powered vehicles, which lagged behind BEVs in 2022 and 2023, are expected to grow as more natural gas and propane engines for heavy-duty vehicles come to market offering diesel-like power and reduced emissions to meet govern- ment targets.

YOU CAN COUNT ON DIESEL

Petroleum diesel isn’t clean, but it has been a consistent fuel source supply that chain partners could count on to get goods from one point to the next. It’s that reliability and the promise of cost savings compared to converting fleets to vehicles that don’t run on diesel that has some exploring the viability of renewable and biodiesel options to cut emissions and maintain performance.

Renewable diesel or HVO (hydro-treated vegetable oil) is appealing because it is a so-called “drop-in fuel” that doesn’t require any modifications to work with existing diesel engines. The fuel, which is made from cooking oils, waste animal fats and other or- ganic sources, is chemically identical to its petroleum-based counterpart. However, it differs substantially in emissions, reducing the amounts of carbon dioxide and nitrogen oxide released into the atmosphere.

Biodiesel is made from vegetable oils, used cooking oils and animal fats and blended with petroleum diesel. Its downside is that the fuel may require modifications to work in existing engines, and it is less eco-friendly than renewable diesel and other drive-train alternatives.

Other considerations come into play when choosing renewable diesel or biodiesel. The former outperforms the latter in cold weather conditions. Biodiesel may gel in below-freezing temperatures, affecting truck performance and fuel consumption, while renewable diesel has no temperature limitations.

IT’S A GAS

Fleet operators find a lot to like about running their trucks on renewable natural gas (RNG), which is produced from landfills, livestock waste and wastewater. In recent years, the U.S. has reached ample production levels of RNG, keeping the cost in line with diesel. According to TRC, 81% of existing fleet operators surveyed said they would either increase (42%) or hold steady (39%) their use of natural gas vehicles between 2024 and 2026.

In 2023, registrations for medium- and heavy-duty vehicles running on natural gas were second only to BEVs. Many fleet operators find that natural gas offers the best combination of range and emission improvements. RNG is also seen as a drop-in fuel because it is chemically identical to petroleum gas and runs on existing engines.

ZERO EMISSIONS

Adopting zero-emission BEVs for heavy-duty commercial use is being held back by a combination of cost and range issues. Fleet operators surveyed by TRC said that only between 1% and 2% of their trucks and vans were BEVs.

Government bodies have largely driven corporate interests to add BEVs to fleets in an effort to meet zero-emission mandates. It remains to be seen how this will further play out as the Trump administration begins its next four-year term in Washington, D.C., supported at the outset with Republican majorities in the House and Senate.

Companies running BEVs report satisfaction with their performance, particularly on local and shorter, light- weight routes. Ninety percent of fleets using BEVs expect to increase their use during the next two years.