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Green Freight the Green Toolbox

Jonas Strmberg
Director Sustainable Solutions Scania CV AB

Provider of Transport Solutions

Haulage

Construction

Distribution

Special purpose

Network and services

City and suburban

Intercity and coach

Used vehicles

Engines

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Todays Agenda

Drivers for Sustainable Transport Solutions the Green Toolbox

Smarter Transport Ecolution

Good examples Improved Green Procurement Questions and Discussion

Many Drivers for Sustainable Transport

Climate Change Peak Oil Local Energy Security Diesel shortage Urbanization Air Quality Congestion Increase of transportation Policies Green image Urbanization

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Drivers for Sustainable Transport

Climate Change The Elephant in the Room

Rapid environmental change is underway Current policies are far from enough Transport sector is one of the fastest growing emitters

Peak interval

Actual IEA Shell Hubbert model

The flow/day is key!

Peak Oil Local Energy Security

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The diesel shortage High costs for net importers and problems for heavy duty transport. Diesel substitutes essential!

Fuel security

Who will feel the oil pressure?

A double challenge: To replace oil and reduce CO2 simultaneously...

Oil use in OECD

120 100 80 60 40 20
Oil use in the OECD

Other sectors Transport sector

73 %

0 1970

2010

Transport Sector to 96% dependent on oil

Energy security

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Global population growth 1950-2100

Rapid Urbanization
ASIA

High % of GDP used for oil/diesel imports

AFRICA

How to achieve sustainable mobility of people and goods in fast-growing countries and cities?
Source: United Nations, Department of Economic and Social Affairs The 2010 Revision. (Updated: 15 April 2011)

Asian/African transport challenges

(Updated: 15 April 2011)

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More people die from air pollution than from traffic accidents

Congestion, air quality and health

Climate Change and CO2

Air Quality & Congestion

The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the le again. If the red x still appears, you may have to delete the image and then insert it again.

Are you part of the problem? Transports Peak Oil & Energy part of the solution? oil addiction Or Security
Oil use in OECD
120 100 80 60 40 20 0 1970 1970: Index 100 1980

Other sectors Transport sector

1990

>73 %

2000

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The diesel shortage High costs for net importers and problems for heavy duty transport. Diesel substitutes essential!

Fuel security

Most important sustainability challenges for the heavy transport sector

1. Local Emissions (Particles, NOx, etc) 2. Energy Efficiency 3. Emissions of fossil CO2

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1. Local Emissions
Driven by Legislation

NOx

PARTICLES

2. Energy Efficiency
100 % Market driven
1 2

Euro
litres/100 km 50 45 40 35 30 25 20

4 5

Market driven

The no 1 compete:ve factor All commercial measures automa:cally applied Rising fuel prices increase the compe::on
92 96 01 06 09

1950

1960

1970

1980

1990

2000

2010

2020

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3. But what about the big challenge?

Fossil CO2 from the transport sector

Data from TREMOVE

Energy Efficiency and new technology is not enough!

Projected CO2-emissions from road transport in EU

Energy use and local emissions decreases continuously CO2 is not... Future technology is always just around the corner but to break transports increasing CO2 emissions and oil dependency

CO2-emissions from road transport

we need commercial volume solutions here and now!

Data projection from TREMOVE

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No single magic solution a green toolbox

We need commercial volume solutions... Which tools gives most CO2 reduction for your money?
Engine Rolling resistance Aerodynamics Payload

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CO2 per tkm

1. Logistics and Smarter Transport 2. Driver 3. Vehicle technology 4. Biofuels

50%
1970 2000

50%
2020

Smarter transport
Scania worked out an efficient logistics proposal with a customer and the Transport Authority for an annual transport of 15 million packages.
Before 252 bags per pallet Today 360 flat packed packages per pallet
From bags to packages From 1 800 to 1 260 truck movements

Using longer vehicles From 1 260 to 800 truck movements

Total savings of 1000 truck movements with ~33% reduction of fuel/CO2

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Ecolution by Scania
Ecolution by Scania is a customer solution that optimises fuel efficiency and minimises CO2 emissions.

Stefan Sylvander, Product Director

Biofuels are one of the most cost ecient ways of reducing CO2 emissions in heavy transport Fuel CO2
Regular spec EcoluBon spec Maintenance+

Driver training Biofuel and follow-up

Commercial green tools here and now

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Fuel saving opportunities

Roof and side air deflectors 7% Extra equipment 1,5% Side air deflectors extensions 0,5 % Powertrain specification >3%

Vehicle specification

Vehicle speed, 4km/h 5%

Vehicle weight, 500kg 1%

Scania Opticruise/ Active prediction 5% - 8%

Side Skirts 1% Tyre choice 5%

Fuel saving opportunities

Roof air deflector height adjustment 3% Extra equipment 1,5% Maintenance +

Axle alignment, 1 3%

Tyre Pressure 1%

Ecolution by Scania/ Stefan Sylvander 2012-08-28

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Energy efficiency
The driver influence Scania driver training and coaching

Numbers of drivers On average 13% reducBon!

Normal eet average Fuel ConsumpBon (CO2)

Bioethanol
Worlds No. 1 biofuel Diesel engine & efficiency Average 71 % CO2 reduction (EU) Buses, coaches waste collectors, distribution trucks.

Biodiesel
Low blends to B100 Diesel engine Average 38 % CO2 reduction (EU) All types of applications, including long-haulage and coaches.

Biogas
Mixes with CNG Otto engine Average 73 % CO2 reduction (EU) City/Intercity buses, waste collectors, distribution trucks.

Buses & Trucks for the 3 major biofuels

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Most biofuels are sustainable today

There are both good and bad biofuels But today the market is strongly regulated by sustainability standards EU regulation toughest Most biofuels are therefore sustainable today work with certified producers! But oil is also becoming more and more unsustainable Tar sands, deep sea, fracking

Biofuel producBon pathway Sugar beet ethanol

Average GHG emission saving 52%

Wheat ethanol, 47% NG as process fuel Wheat ethanol, straw as fuel Sugar cane ethanol RME (Biodiesel) Waste oil FAME ity (Biodiesel) bil 69% 71% 38% 83% 73%

Biogas from tai catio usorganic waste S rifi

na

ns

ve

[From Annex V of the EU RED directive]

Biofuel myths, land use and food vs fuel

Most food production from increased efficiency on existing land, not from new land (FAO). Big potential to increase production of both sustainable biofuels and food especially in EU, Latin America and Africa
In EU alone 40 MHa of abandoned farmland. Global biofuel production = 30 MHa

Grain production

Land use

Potential for cropland expansion

Coffee or golf, anyone? Proper land use policies/management for all types of land use necessary biofuel policy lead the way. Enough land for food, fuel AND other activities

> 2,5 billion hectares available

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NOx
g/kWh

Diesel and Biofuel Engines Local Emissions

Diesel Euro 2

Diesel Euro 4

Ethanol Biogas

Particulates
g/kWh

Cleaning up our cities

Consumption
L /100km

Example - EB Logistik
-11%
R440LB6x2 Eu5 Biodiesel Rear axle ratio 2.59

36.4 l/100 km
R420LB6x2 Euro 5 diesel Rear axle ratio 3.08

32.4 l/100 km EcoluBon yearly savings:* Fuel 8 000 L (11 %) CO2 140 ton (64%) 12 000 (1,5 /L)

Ecolution vehicle
* 200000 km

Driver training

and follow-up

Ecolution solution

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Service quality economy/efficiency Challenges

Random mode Self-made experts Parts supply? Quality? Uptime? Service contracts Skilled staff! Planned service! Parts logistics! Quality! Uptime!

all fuel and CO2 reduction tools are supporting each other not competing. Do not let the best be the enemy of the good

Bioe than ol fu e

ertrain rid pow Hyb

Train ed D

Eco-spec Separated bus lane

river

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How to get there conclusions

More functional and long term transport procurement is key:
Many tools no magic solution use functional demands for CO2 cuts that allows for all tools to be used most cost efficient emission cuts

Short term view and focus on up-front price prevent investments in

robust, well-maintained, low-carbon and clean quality vehicles Functional and long term demands for e.g:
lowest cost per km over - a 10 year life cycle minimum uptime levels - over a 10 year life cycle maximum local emission levels - over a 10 year life cycle maximum CO2 emission levels - over a 10 year life cycle

Most

kms and emission cuts for each $ invested

Sustainable transport is not difficult!

It is here and now!

jonas.stromberg@scania.com

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Ecolution by Scania Main modules

Vehicle
Fuel and CO2 optimised specification

Driver training
Customised energy efficient driving

Driver follow-up
Coaching and continuous improvements

Maintenance+
Extra attention to fuel economy

Result

Common target monthly follow-up

Ecolution by Scania/ Stefan Sylvander 2012-08-28

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Fuel and CO2 savings calculator

Ecolution by Scania/ Stefan Sylvander 2012-08-28

Monthly Ecolution Report

Ecolution by Scania/ Stefan Sylvander 2012-08-28

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Electrification only one part of the future puzzle

Scania have tested and run hybrids since the 1980s Hybrids will have to stand on its own merits
Bottleneck still energy storage batteries Components developed for cars not suitable for HD-transport Cost level and lifetime not yet on commercial level

1986 1995

1995 1996

1997

Electric power transfer from the road or at bus stops a future possibility?
Research project with Bombardier on inductive power transfer

2007

Production of electricity must also be clean Scania have tested and run hybrids since the 1980s 2011

Also other resources are getting scarce

Source: DOE Critical Materials Strategy 2010

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Analysis of transport related costs

Up to 50% economic improvement potential
Retail (food and grocery) example

Ecolution

Source: McKinsey/Scania 2012

KTBE, S. Sylvander 2012-03-14

Most biofuels are sustainable today

There are both good and bad biofuels But today the market is strongly regulated by sustainability standards EU regulation toughest Most biofuels are therefore sustainable today work with certified producers! But oil is also becoming more and more unsustainable Tar sands, deep sea, fracking

Biofuel producBon pathway Sugar beet ethanol

Average GHG emission saving 52%

Wheat ethanol, 47% NG as process fuel Wheat ethanol, straw as fuel Sugar cane ethanol RME (Biodiesel) Waste oil FAME ity (Biodiesel) bil 69% 71% 38% 83%

ns na 73% tai catio sBiogas from ifi Su organic waste r ve [From Annex V of the EU RED directive]

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Biofuel myths, land use and food vs fuel

Most food production from increased efficiency on existing land, not from new land (FAO). Big potential to increase production of both sustainable biofuels and food especially in EU, Latin America and Africa
In EU alone 40 MHa of abandoned farmland. Global biofuel production = 30 MHa

Grain production

Land use

Potential for cropland expansion

Coffee or golf, anyone? Proper land use policies/management for all types of land use necessary biofuel policy lead the way. Enough land for food, fuel AND other activities

> 2,5 billion hectares available

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