Fueling Companies and Truck Manufacturers Invest Billions, Big Oil and Gas Take Notice
Truck stop operators have been making strides in expanding their customers' fueling options. Pilot Co., a major chain in the United States, has announced plans to offer a range of alternative fuel options, including renewable diesel, biodiesel, compressed natural gas, liquefied natural gas, hydrogen, and electricity. Brad Jenkins, Senior Vice President of Supply and Distribution at Pilot, revealed in a recent interview that the company is looking at hydrogen as the best long-term option for long-haul trucking, while battery-electric trucks and renewable natural gas could be suitable for hub and spoke operators.
The North American Council for Freight Efficiency has also predicted that hydrogen-powered trucks will be the best option for the trucking industry to achieve zero-emission vehicle goals in the coming years. In light of this, Pilot Co. has been exploring hydrogen opportunities with several parties. The company's interest in hydrogen fuel is high, and it is currently selling 1.5 billion gallons of renewable fuel every year, with 60% being renewable diesel and the remaining 40% being biodiesel.
Pilot is also partnering with Clean Energy Fuels, a company that operates more than 110 natural gas fueling stations, over 60 of which are located at Pilot facilities. Additionally, Pilot is not ruling out the possibility of investing in battery-electric trucks. The company has plans for a coast-to-coast fast-charging electric vehicle network, which will be implemented in collaboration with General Motors. Brad Jenkins has stated that around 40-45 sites will be operational by the end of 2023.
Trillium Energy Solutions, a unit of Love's Travel Stops, has also indicated its commitment to offering its customers a range of fueling options, including hydrogen and battery-electric trucks. So far, the company has been focused primarily on compressed natural gas and renewable natural gas infrastructure, as well as heavy-duty hydrogen fueling. Trillium has installed electric vehicle chargers but has highlighted the challenges facing the EV charging market, such as high fixed costs and low utilization rates.
Love's Travel Stops and TravelCenters of America Inc. are both planning to spend billions of dollars on upgrading their operations and expanding their charging infrastructure. Love's Travel Stops is set to invest more than $1 billion in upgrading 200 locations by 2028. TravelCenters of America Inc., which is about to be acquired by a unit of U.K.-based oil major BP, plans to focus heavily on offering more electric vehicle charging options, biofuels, renewable natural gas, and hydrogen fueling.
Alternative fueling options are seen as a way to attract more customers to truck stops. According to John Lawrence, a specialty retail analyst at The Benchmark Co., more charging stations mean more customers. Although there are challenges facing the EV charging market, including high fixed costs and low utilization rates, the industry's potential is enormous. In conclusion, truck stop operators continue to ramp up efforts to offer alternative fueling options to their customers, while major chains remain undecided on which technology to prioritize.
