Against the background that alternative drive systems are making great strides, we are concerned with the question “how much does it cost to reduce one ton of CO2?” using a practical example.
The initial situation
We were allowed to prepare one of these “Green Fleet” analysis for a customer with a fleet of about 500 vehicles. The goal of the analysis is to reduce CO2 emissions throughout the group and thus to reduce the CO2 emissions of the vehicle fleet. Using a simulation, we were able to show how the CO2 emissions of the fleet would change if vehicles with expiring contracts were to be replaced by hybrid and electric vehicles instead of new vehicles with combustion engines, and what financial impact this change would bring.
The fleet of vehicles we look at includes about 350 vans (300 middle and 50 small) and 150 passenger cars (120 compact and 30 small). The data simulation covers a time horizon of 6 years. In the years 2021, 2022 and 2023, the vehicles with a combustion engine will be replaced by a Green Fleet vehicle at the end of each contract. The year 2026 represents the point in time when all vehicles are replaced by a Green Fleet vehicle. In the scenarios, vehicles that can actually be configured and ordered today in a legally binding manner are taken into account according to the operational usage requirements of the customers.
The implementation
Scenario 1, Changeover passenger cars to hybrid
A Hybrid vehicle will replace the passenger cars at the end of each contract period. The Toyota Yaris Hybrid is chosen as the successor for small passenger cars, and the Toyota Corolla TS Hybrid as the successor for compact cars.
In 2026, all passenger cars in the fleet will be replaced. The CO2 saving at that time will be 4.5% p.a. the costs will increase by 1.4% p.a.
In total 127 tons can be reduced every year with costs of CHF 640.00 p.a. for every ton.
Scenario 2, Changeover of passenger cars and small vans to electric and hybrid
Electric cars replace passenger cars for which an electric version suitable for use is available. The Renault Zoe electric is being considered as a replacement for small passenger cars and a Renault Kangoo electric for small delivery vans.
We also consider replacement by electric vehicles to be a feasible scenario in terms of charging. If passenger cars cover 20,000 kilometres a year, the theoretical mileage per working day is 89 kilometres. This means that the Renault Zoe must be loaded every fourth day at the latest, and the Renault Kangoo every second day.
The large passenger car will still be replaced by a Toyota Corolla TS Hybrid, as in scenario 1.
Over a period of 6 years, 80 electric and 120 hybrid vehicles will be put on the road. This leads to a significant CO2 reduction of 17.5% in 2026. The associated annual additional costs amount to 5.3%.
In this scenario 816 tons of CO2 can be saved, the reduction of one ton p.a. is associated with additional costs of CHF 412.00 p.a.
Scenario 3, Changeover of all cars and vans to electric and hybrid
Scenario 3 contains scenario 2 including replacement of the medium size vans by a Ford Transit Custom PHEV, an electric vehicle with Range Extender.
The purely electric range of the Ford Transit Custom PHEV is significantly lower with around 50 kilometres. Here the combustion engine is needed to charge the battery for an average of another 40 kilometres per day. Efficient use of this vehicle requires daily recharging. The lower electric range leads to relatively higher fuel costs.
In 2026, 120 hybrid vehicles and 380 electric vehicles will be on the road, resulting in a total CO2 reduction of 57% and a cost increase of 22.8% p.a.
After replacement, the annual CO2 savings amount to 1843 tons. The reduction of one tonne of CO2 can be achieved with additional costs of CHF 820 p.a.
The efficiency of the PHEV and thus of scenario 3 depends, among other things, on the following external influences:
- Annual mileage
The more you drive every day, the more you have to charge the car or switch to the combustion engine. If you are driving relatively short distances between your home and work, you can most likely cover these distances purely electronically, and switching to a PHEV is absolutely worthwhile.
- Options for charging the vehicle
Since the PHEV has an electric range of about 50 kilometers, it is essential to charge the vehicle as often as possible to use it efficiently. The desired effect on environmental protection can only be achieved if employees are disciplined when charging. In practice, we have observed that fuel costs increase when there is a lack of discipline.
- Power source
A PHEV can only be as green as the power source and the driver allow. If you use fossil fuel based electricity, the greenhouse gas impact is not as low as it could be.
The possibility to reduce cots
In another data simulation, we created a practical study for a fleet that is not yet in fleet management. Here, a different trend can be seen in the cost development. By converting the passenger cars to hybrid vehicles, the total costs of the fleet can be reduced by up to 3.8%, combined with a reduction in CO2 emissions of up to 3.5%.
The reduction of CO2 emissions is not necessarily associated with an increase in costs. Depending on the current status of the previous optimizations, a reduction of the total costs can also be achieved.
For any questions regarding the possibilities of a Green Fleet we are happy to help.
