About $20 million in funding to build Australia’s first renewable hydrogen refuelling station network has been welcomed by the Federal Chamber of Automotive Industries (FCAI).
Chief executive Tony Weber says the project, jointly funded by the Victorian, NSW and Queensland governments, is an important step in preparing Australia’s eastern transport networks for a zero-emissions future.
“While this announcement is initially aimed at the trucking industry, it is a historic first step in preparing the broader transport sector for large-scale renewable hydrogen use. It is great to see three state governments behind this program.”
Strong potential exists for this fuel source to eventually be cost-competitive with diesel, which the FCAI notes currently powers around one-third of Australia’s new vehicles.
“To prepare Australia for a zero-emissions transport future, more infrastructure investment such as this hydrogen project and leadership from governments at all levels will be needed,” Weber adds.
Meanwhile, a report finds that Australia needs to electrify its national vehicle fleet to meet the country’s CO2 emissions reduction targets and reach net-zero by 2050.
The report by Australian asset finance brokers and comparison service Savvy illustrates what’s needed for Australia to convert its national diesel road transport fleet to fully electric vehicles.
“Considering that transport emissions account for 19% of the total, of which road freight comprises 38%, action taken in the next two decades to transition to electric trucks will have a significant impact on success,” it says.
“Trucks also consume 23% of all road transport fuel – despite only travelling 8% of all road vehicle kilometres and comprising 4% of the entire Australian road vehicle fleet,” the report explains, adding that a truck’s average age in Australia is between 10-15 years and that 70% of truck operators own only a single vehicle.
The goal is 30% new electric truck sales by 2030 and 100% by 2040, the report suggesting subsidies and incentives are required to make the transition, especially as the upfront purchase price of an e-truck is almost double its diesel equivalent.
“Trucks are the lifeblood of freight in Australia,” the report adds, suggesting e-trucks could reduce air pollution and associated health concerns, create new employment opportunities, encourage sustainable transport solutions, reduce transport costs and therefore the cost of goods for consumers and businesses, ensure energy security, and contribute to the national commitment for net-zero carbon emissions.
Australia uses about 500,000 rigid trucks and 100,000 articulated trucks.
Diesel fuel is the most significant cost for a trucking operator, on average representing 20% of short-haul operator costs and 35% of long-haul operator costs with any volatility (such as Russia’s war in Ukraine) inflating costs which must be passed on to business and consumers, the report says.
Restrictions on oil products from Russia (as of March 24) have contributed to diesel prices increasing 35% from an average of $1.63 in December 2021 to $2.21.
As e-trucks are quieter, it means they can be used later at night and avoid urban or suburban “truck curfews” – policies introduced to curb noise pollution, which also have a flow-on effect for commuters as it would reduce peak hour traffic and congestion.
“With all environmental and health benefits combined, it’s estimated that an electrification of both articulated and rigid trucks could save the Australian consumer $324.8 billion by 2050.”
A reduction of moving parts for e-trucks also means maintenance cost reductions.
Looking at a 22-tonne truck covering 300km without freight, the cost in diesel at current prices (March 24) would be $189.61, while the cost of powering an e-truck would be between $14-$42, based on off-peak tariffs for a depot-based fleet, saving 77.8%, the report notes.
Only 14 out of the 58 truck models available in North America, China, and Europe can be used in the Australian market. According to the Australian Trucking Association, this is due to current policy rules. Therefore, there is artificial scarcity and limited choice for truck operators in Australia, even if they wanted to move to e-trucks.
The ATA says the government should provide a one tonne concession for e-trucks, taking the battery weight into consideration and that widths should be increased to align with the standard width used by major supplier economies.
High stamp duty prices should be exempt for electric or zero-emission trucks, while the report suggests other incentives could assist e-truck uptake.
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