The transition to alternative powertrains from diesel in the road transport and logistics sector is a major challenge for reducing the environmental impact of this industry. But what are the most promising solutions? How can companies be effectively supported in this transformation? And what are the economic challenges to overcome? Denis Benita, an expert at ADEME, sheds light on the levers for action, emerging technologies, and the sector’s prospects for shifting towards more sustainable alternatives.
Denis Benita
You mentioned during SITL that you are working on content to support road transport companies in their transition to alternative powertrains from diesel. What can we expect to find in it, and what should we take away from it?
To support road transport and logistics companies in their energy transition, we have developed a 30-page “expert opinion.” This document serves as a decision-making tool, offering a clear and objective overview of the available solutions to replace diesel in the sector.
Our analysis begins with a presentation of the regulatory context, notably the European restrictions that encourage the exploration of new powertrains, followed by an assessment of the current vehicle fleet and market. This foundation helps understand the challenges of the transition.
The core of the document examines in detail the main alternative energy sources: natural gas (CNG and bioCNG), alternative liquid fuels (biofuels, e-fuels), electric (batteries), hydrogen (fuel cells and combustion engines), and retrofit (conversion of existing vehicles). Each option is evaluated based on its advantages, disadvantages, technological maturity and deployment potential.
This approach allows each company to develop its own transition strategy, considering its specific needs, the types of routes undertaken and the available infrastructure.
Among these alternatives, which one(s) seem the most promising in the short and medium term for logistics?
To begin with, the gas sector, particularly CNG (Compressed Natural Gas), is a mature option already used in the urban bus sector. Currently, about 1.7% of the logistics vehicle fleet uses CNG. Although slightly more expensive, this option benefits from a growing network of stations, making its adoption easier.
Next, the biofuels sector is also mature and available, mainly for captive fleets. This option offers a rapidly deployable alternative to conventional diesel.
In the medium and long term, the electric sector appears to be the most interesting. It presents several major advantages, notably emitting no exhaust emissions and having excellent energy efficiency, superior to that of diesel. However, it faces significant challenges, especially in terms of purchase cost and the range of currently available models. To date, it is estimated that the total cost of ownership (TCO) of an electric vehicle is 10 to 30% higher than that of a diesel vehicle. Despite these challenges, the electric sector is considered to have the most long-term potential, provided there are technological advancements and cost reductions.
Finally, the retrofit sector, which involves converting existing vehicles, is also mentioned as a developing option, offering a potential transition pathway.
How is ADEME currently supporting the sector’s transition to diesel alternatives?
ADEME plays an important role in supporting the logistics sector’s transition to diesel alternatives. Our approach is multidimensional, combining financial assistance, technical expertise, and decision-making tools.
On the financial front, we mainly intervene through calls for projects funded by the France 2030 programme, such as the “Hydrogen Technological Bricks and Demonstrators” call for projects. We have also set up an innovation competition dedicated to innovative single-partner projects led by start-ups and SMEs, aimed at fostering the accelerated emergence of industry leaders in their field.
Regarding the electrification of heavy goods vehicles, a particularly important project for 2024 is our “E-TRANS” Energy Savings Certificates (CEE) programme, aimed at financing these vehicles. With a budget of €130 million, this programme is expected to fund at least 2,100 heavy vehicles, including 85% trucks, through two aid schemes:
- A first aid scheme for the acquisition of heavy goods vehicles (excluding refuse collection vehicles), with a budget of €20 million, launched on 12 June in the form of a grant reserved for SMEs and micro-enterprises;
- A second scheme, open to all companies, which will have a budget of €110 million and be launched in August in the form of a call for projects. €95 million will be allocated to heavy goods vehicles (excluding refuse collection vehicles), €10 million to urban buses and shuttles, and €5 million to coaches.
The aid will cover new vehicles or retrofit.
Beyond financial support, we provide sector stakeholders with in-depth expertise. We regularly publish expert notes and studies on various diesel alternatives, such as electric retrofit or CNG retrofit. These comparative analyses of different alternative fuels are designed as genuine decision-making aids for transport operators.
We also develop tools that allow companies to concretely assess the options available to them based on their needs.
All these initiatives aim to provide transport operators with the information and support they need to make informed choices in their energy transition. Our goal is to best support the sector in this major transformation by combining financial support, technical expertise, and practical tools.
What levers should be activated to support the sector’s transition in the medium to long term?
The fiscal lever is probably the most effective for accelerating the energy transition. A concrete example is the scheduled end of the TICPE (Domestic Consumption Tax on Energy Products), from which transport operators currently benefit from a partial refund for the use of diesel. We could also consider implementing an eco-score for heavy goods vehicles, similar to the one existing for individuals, to encourage the purchase of the most efficient vehicles.
A second important lever would be the simplification of regulations, particularly regarding retrofitting; actions have already been taken in this direction.
Finally, the economic lever remains crucial. It is essential to continue implementing financial aid to raise funds and develop the necessary infrastructure, particularly charging and refuelling stations. For electric vehicles, the problem of public stations is less critical as most are recharged overnight at the depot.
Regarding hydrogen, it will likely be more suitable for intensive use. However, due to its low energy efficiency, it is important to carefully target the projects to be funded in this area.
The combined activation of these different levers wouldeffectively support the logistics sector’s transition to more sustainable alternatives, taking into account the specificities of each technology and the needs of the sector.
Can we expect equivalent or even more favourable TCO for electric compared to diesel in the short term?
The main objective is to achieve an equivalent total cost of ownership (TCO) between electric and diesel vehicles by 2030 without relying on subsidies. However, economic analysis in this area is complex, particularly due to the variability in the prices of heavy goods vehicles and energy resources.
Indeed, the price of a heavy goods vehicle is not standardised and depends on many factors such as the options chosen, customer loyalty, and bodywork specifications. This diversity complicates the establishment of direct comparisons.
Nevertheless, the Ministry of Transport has developed several scenarios in its roadmap for decarbonising the heavy vehicle value chain. These projections suggest that for vehicles between 19 and 26 tonnes covering short distances, the TCO of electric versions would become more advantageous than that of diesel between 2025 and 2030. For 44-tonne heavy goods vehicles, this break-even point would be reached a little after 2030.
A key element of these projections is that the initial higher cost of purchasing electric vehicles could be partially offset by lower energy costs compared to diesel. This difference in operational costs would play a crucial role in achieving TCO parity.
These estimates highlight the importance of considering both acquisition and operational costs over the vehicle’s lifetime when evaluating the economic viability of diesel alternatives.
Among the current initiatives in the road transport sector, are there any projects you find particularly innovative or promising in terms of decarbonisation?
Yes, there are indeed promising and ambitious projects in the field. A particularly interesting example is the ECTN (European Clean Transport Network) experiment recently launched by CEVA Logistics.
This project aims to test a low-carbon long-distance road transport concept over 900 km, between Avignon and Lille. The approach is innovative as it draws inspiration from the “relay post” system, creating relay stations equipped with electric charging points and bioCNG stations along the motorway network, where trailers are unhooked and then reattached to the tractor unit for the next segment.
What makes this project relevant is that it seeks to demonstrate the feasibility of decarbonising long-distance road freight transport without requiring major technological innovations. Moreover, it involves various sector stakeholders in a co-construction approach, which could facilitate its broader adoption.
The experiment, planned over two years, will allow a concrete evaluation of the environmental benefits and operational efficiency of this model. If the results are conclusive, this concept could potentially be deployed on a European scale, providing a concrete solution for significantly reducing the carbon footprint of road freight transport.
