Five Factors Shaping the Future of Alternative Fuel Vehicles

Regulatory requirements, customer demands and global sustainability initiatives are all driving increased demand for low- and zero-emission transportation solutions. Several technologies are already in use today, and even more are on the horizon.

Here are five trends affecting the future of carbon emissions.

1. OEMs Will Use Multiple Technologies

A low- and zero-emission future will require multiple technologies, and equipment manufacturers and fuel producers are taking a multipronged approach as they develop and test alternative fueling solutions. Battery electric, fuel cell electric and the internal combustion engine running on renewable fuels, such as renewable diesel (RD), will all play a role in trucking in the future.

According to the 2024 State of Sustainable Fleets report, use of RD is already on the rise, as consumption increased by 68% in 2023 compared to 2022. Additionally, OEMs are currently designing diesel engines to be compliant with 2027 regulations and beyond.

Download your copy of the 2024 State of Sustainable Fleets report here.

2. Infrastructure Needs Persist

Infrastructure is the pacing issue today, and many OEMs and fleets are concerned that infrastructure isn’t being developed fast enough.

To help advance infrastructure initiatives, several large manufacturers have gotten involved in Powering America’s Commercial Transportation (PACT), a coalition focused on education and advocacy for accelerating the construction of nationwide infrastructure for medium- and heavy-duty zero-emission vehicles (ZEVs). Penske Truck Leasing recently joined PACT to provide insights about the operational needs and experiences of fleets.

3. Regulations Drive Adoption

Federal emissions standards are affecting calendar year 2027 trucks along with zero-emission regulations in California and a number of states are driving the development and adoption of new technologies. More states are poised to adopt stricter emissions regulations.

California has led the way toward creating more stringent requirements at the state level by creating the Advanced Clean Truck Rule, which applies to equipment manufacturers. California has also adopted the Advanced Clean Fleet and Transport Refrigeration Unit (TRU) rules, which create zero-emission purchasing mandates for fleets and have specific requirements surrounding transport refrigeration trailer units.

4. Adoption Is Underway

Industry leaders aren’t just talking about sustainability; they are taking action and deployments are underway. The State of Sustainable Fleets report found that Battery Electric Vehicle (BEV) adoption surged in 2023 with deliveries of more than 26,000 buses, trucks and vans, nearly doubling 2022’s delivery volume.

Hydrogen fuel cell trucks are also in use and major players like Kenworth, Peterbilt and Toyota are taking orders for their commercially produced hydrogen fuel cell Class 8 tractors, according to the report.

The Penske Truck Leasing EV Evaluation Fleet includes vehicles like the Freightliner eCascadia (Class 8), Freightliner eM2 (Class 6 and 7), Volvo VNR electric tractor (Class 8), International® eMV™ (Class 6 and 7), Ford E-Transit (Class 2), Orange EV e-Triever electric terminal truck (Class 8-yard tractor), Freightliner Custom Chassis MT50e walk-in (Class 5 and 6) and XOS walk-in (Class 6). These are just a few options, as Penske is continuously evaluating technologies.

5. Collaboration Is Increasing

As new technology emerges, manufacturers and fleets have to think about routes, fueling capabilities and the time to fuel or charge. Penske Transportation Solutions and ForeFront Power formed a new joint venture — Penske Energy LLC — to help commercial fleet operators plan, design and deploy optimized EV charging infrastructure capabilities that support and safeguard their operations.

To learn more about how Penske can help you test or deploy the latest transportation solutions, contact us.

By “Move Ahead” Staff