ALTERNATIVE POWER TECHNOLOGIES

The transition from diesel to alternative power sources is driven by both environmental and economic factors. Diesel engines have been the industry standard for over a century, but their environmental impact can be noteworthy. Alternative power technologies offer the potential to reduce emissions and, consequently, the industry’s carbon footprint.

However, the shift is fraught with challenges. “As it stands right now… we will be living with the internal combustion engine for some time,” Malcore says. He emphasizes that fully decarbonizing the industry is a gradual process and that interim solutions will help reduce the environmental impact over time.

“A holistic approach is looking at different options rather than just trying to replace the engine with a battery.”

As diesel fuel is one of the most expensive parts of a jobsite, end users would likely welcome a cheaper fuel source if it allowed the same power output. “If you could have a magic technology come by tomorrow where a battery will work for all machines, probably everyone would adopt it because immediately they’d start saving on fuel costs,” Malcore shares, noting that no much magic bullet exists at this time.

CHALLENGES AND OPPORTUNITIES

One of the most significant challenges in adopting alternative power technologies is the wide variety of machine forms and applications in the non-road equipment industry. Unlike cars or trucks, which have relatively uniform uses, non-road equipment is used in diverse environments—from urban construction sites to remote mining operations. This diversity makes it challenging to implement a one-size-fits-all solution.

“How do you power that machine in all these different locations? How do you bring electric power, if you have a battery-operated machine, to an area where the infrastructure for providing power is not yet built?” Malcore asks. This question underscores the complexity of the transition and the need for multiple solutions tailored to specific use cases.

Another significant challenge is the current limitations of battery technology. Batteries may not provide the necessary power or duration for all applications, particularly in heavy-duty environments. “The problem is… that these new technologies… are not necessarily going to be able to meet every single end-use case,” Malcore notes.

Despite these challenges, there are substantial opportunities. Alternative power technologies can potentially lower the total cost of ownership for equipment operators by eliminating the need for diesel fuel. There is also a strong incentive for the industry to develop and adopt these technologies due to the potential economic and environmental benefits.

“There are technologies out there that can increase energy efficiency. But the industry can’t do the whole transition all at once. You can’t just go fully zero-emission tomorrow with any single technology for the entire industry,” he says.

INCENTIVES AND POLICY CONSIDERATIONS

Incentive programs will play a crucial role in the adoption of alternative power technologies. “The economies of scale for these systems and their components necessary to reduce the cost to be competitive with the current diesel engine technology do not exist yet,” Malcore explains. Incentives can help bridge this gap by supporting both research and development efforts as well as encourage market adoption of these new technologies.

Malcore advocates for a holistic approach to policy, urging regulators to implement incremental improvements rather than attempting a wholesale transition overnight. He stresses the importance of flexibility and the need for the industry to have the freedom to explore and develop various solutions.

“Incentives are going to be crucial to adopting any type of alternative power across the market in the short to medium term.”

RECOMMENDATIONS FOR POLICYMAKERS

To ensure a smooth transition to alternative power, AEM and its members have made several key recommendations for policymakers:

Holistic Approach: Consider a holistic approach to greenhouse gas (GHG) reductions, rather than simply focusing on the tailpipe, to ensure a flexible and robust decarbonization transition.

Flexible Policies: Avoid overly prescribed policy approaches that neglect to consider new processes and technologies that can contribute to GHG reductions, and which allow flexibility for OEMs as they develop these alternative power solutions.

Incentive Programs: Implement broad-based incentive programs to accelerate the adoption of alternative-powered equipment.

Infrastructure Planning: Support flexible infrastructure planning to determine the role of alternative-powered equipment in various sectors such as construction, agriculture, forestry, utility and mining.

Lead Time: Appreciate the lead time necessary for industry to develop these technologies and allow ample time for a robust market to develop.

Safety Training: Promote worksite safety training programs for users of these new technologies.

Global Impact: Consider the impact of other global regulatory actions on the transition to a decarbonized non-road sector.

“AEM believes collaboration between policymakers and industry can deliver future environmental benefits for all,” Malcore states. “And, as the industry continues to invest its resources into new alternative power technologies, we hope this position paper can lead to future conversations and collaborations in support of common goals.”

FUTURE OUTLOOK

Looking ahead, Malcore envisions a future where alternative power technologies are commonplace in the non-road equipment industry. However, this future is contingent on overcoming current technological and logistical challenges. “You’re likely going to see a variety of different alternative fuel technology options that will differ based on machine,” he predicts.

In the future, each work sites may host multiple energy refueling systems, from electric charging to hydrogen fueling stations. “Interoperability is a key word within our industry,” Malcore emphasizes, highlighting the need for different energy systems to work seamlessly together.

The transition to alternative power in the non-road equipment industry is a complex but necessary evolution that has already started but will take decades to accomplish. The AEM position paper outlines the myriad challenges and opportunities that lie ahead and serves as a vital resource for policymakers and industry stakeholders. By fostering understanding and cooperation, the industry can navigate this transition successfully, reducing its environmental impact and building a more sustainable future.

“There’s potential solutions that are lying over the horizon,” Malcore says. “But you need to give industry the flexibility to discover them because they do have a very strong incentive to find these solutions.”

The move to alternative power fuels will require time and collaboration. “The policy solution should not focus on rushing to decarbonize the industry today, but help the industry decarbonize more gradually overtime. This will allow the off-road equipment industry to choose the right technology or the right job, while reducing our collective environmental impact.”

5 Top Things to Know

1. Regulatory Push: State-level initiatives, particularly in California, are driving the need for alternative power technologies to address emissions and climate change.
2. Key Audience: The paper is primarily aimed at policymakers to help them understand the real-world challenges and obstacles in transitioning to alternative power.
3. Technological Challenges: Current battery technology may not meet all the power and duration needs of non-road equipment, especially in heavy-duty applications.
4. Economic Incentives: Incentive programs are crucial for bridging the cost gap between mature diesel technology and emerging alternative power solutions.
5. Holistic Approach: A successful transition requires a flexible, incremental approach that allows for the exploration and development of various alternative power technologies.