Low cvp+van+guide+with+ammendments+19.06.15

The Low EmissionVan Guide

Helping van operatorsto reduce costs and emissions

ConnectCollaborate Influence

Battery Electric Biodiesel Natural Gas/ Biomethane Liquefied Petroleum Gas Plug-In Hybrid

2The Low Emission Van Guide

This guide and accompanying low emission van web tool has been prepared by the Low Carbon Vehicle Partnership in partnership with Cenex, Transport for London, SMMT, FTA, Royal Borough of Greenwich, Arval and Commercial Group Ltd. This project was co-funded by Transport for London and a Defra Air Quality Grant awarded to the Royal Borough of Greenwich.

Published June 2015

Contents

The Low Emission Van Guide 3

Why Choose A Low Emission Van? 4

Some Useful Background Information On Emissions 5

What To Consider When Choosing A Low Emission Van 6

Topic Sheet 1

Battery Electric Vans 8

Topic Sheet 2

Plug-in Hybrid Electric Vans 10

Topic Sheet 3

Liquefied Petroleum Gas Vans 12

Topic Sheet 4

CNG / Biomethane Vans 14

Topic Sheet 5

Biodiesel Vans 16

Best Practice - Making Existing Van Operations More Efficient 18

Low Emission Van Summary Matrix 19

What To Do Next?

Assess The Savings For Yourself 20

Links To Further Information 21

2 3 The Low Emission Van Guide The Low Emission Van Guide

The Low Emission Van Guide

A low emission van operates using efficient technology or alternative fuels rather than diesel. Low emission vans can help lower the running cost and environmental impact of your fleet.

This guide will assist you in choosing the most suitable low emission van for the type of work you do. The guide is

aimed at operators of small to medium-sized fleets of commercial vehicles, covering vans up to 3.5t GVW (gross

vehicle weight) - i.e., a Ford Transit sized van. The guide:

• Sets out the business, environmental and operational case for using low emission vans.

• Gives van operators the knowledge and resources required to assess which vans are right for them.

• Provides case studies showing the cost savings achievable from different types of low emission fuels

and technologies.

Once you have read this guide, you can find more information about low emission vans at the LowCVP’s Low

Emission Van Information Hub at www.lowcvp.org.uk/lev. The LowCVP and Cenex have created the VC3 Van Cost

& Carbon Calculator tool where you can enter your own data and compare different low emission fuels and

technologies suitable for your fleet. See the ‘What to do next?’ section at the end of this guide for an introduction

to the tool.

Source: VW


Why Choose A Low Emission Van?

The right low emission van for you is the one that saves you money, reduces your environmental impact and does not restrict your operations.

Better for businessReducing CO2 (carbon dioxide) emissions

from vehicles makes good business sense

as lower emissions normally means you

are also spending less money on fuel.

Clean and green vans help to demonstrate

an environmental commitment and

enhance your organisation’s image. The

environmental credentials of suppliers

(you!) are becoming more important to

your customers. In fact, there is an EU

Directive called the Clean Vehicles Directive

that mandates public sector organisations

to take the environmental impacts of

vehicles into account during procurement

decisions. Transport for London and

many local authorities have introduced

performance standards for low emission

vans as part of their tendering process for

contractors. By operating a low emission

van you could be a step ahead of other

companies bidding for work.

Better for air quality and healthExhaust emissions from vehicles contribute to air quality problems in cities. Poor air quality is extremely harmful

to health; it is estimated to contribute to 29,000 premature deaths a year in the UK . Many UK cities are putting in

place measures to reduce air pollution from vehicles including vans. London has introduced the Low Emission

Zone and will be introducing an Ultra-Low Emission Zone by 2020. This aims to increase the use of cleaner

vehicles in central London. In September 2020 diesel vans operating in the London Ultra-Low Emission Zone

must comply with the Euro 6 emissions standard. Compliance is achieved through imposing restrictions and

different charges on the types of vehicles that are allowed into Low Emission Zone areas. Other major cities across

the UK are introducing local measures to encourage the use of cleaner vehicles to help improve air quality.

Better for the environmentThe UK Government is committed to reducing greenhouse gas emissions and has introduced regulations and

incentives to encourage low emission vehicle use by businesses and individuals. These measures are expected to

continue in the future.

Source: Nissan


Some Useful Background Information On Emissions

Air quality emissions are pollutants released from a vehicle’s exhaust pipe in to the atmosphere. You may have

heard of Particulate Matter (PM) and Oxides of Nitrogen (NOx). These are the principal pollutants released from

vehicles that contribute to poor air quality in cities.

Euro Standards are a set of air quality standards that new vans must meet. Every few years tighter emission

standards are set for new vans. The current standard is Euro 5 for all vans, with small vans (like a Citroen Nemo)

moving to Euro 6 in September 2015 and larger vans (like a Transit Connect and bigger) in September 2016. When

looking at purchasing second hand vans, the higher the Euro Standard, the cleaner its emissions will be.

CO2 is a greenhouse gas which does not affect air quality but is considered the principal contributor to climate

change. In this guide we talk about the CO2 emissions from vans in two different ways as explained below.

- Tailpipe CO2 is emitted directly from the vehicle and every van model has its tailpipe emissions

declared by the manufacturer. They are expressed as the grams of CO2 emitted per km driven (g/km).

It’s important to know this before you buy a van as some tax rates, plug-in van grants and congestion

charge rates are based on tailpipe emissions. An Ultra-Low Emission Vehicle (ULEV), is a van which

emits less than 75g CO2 per km driven.

- Fuel life cycle CO2 is a much better method for understanding the true environmental performance

of a fuel. This takes into account the CO2 emissions associated with the energy used while extracting

and processing the fuel as well as the emissions from the vehicle when the fuel is burnt. Renewable

biofuels, which are generally derived from plants or waste, also cause CO2 emissions when used in a

vehicle. However, since this CO2 was taken from the atmosphere by the plant when it was growing, its

combustion does not contribute to climate change and is therefore not included when looking at the

fuel life cycle CO2 emissions from a van.

Why Choose A Low Emission Van?

The right low emission van for you is the one that saves you money, reduces your environmental impact and does not restrict your operations.

Better for businessReducing CO2 (carbon dioxide) emissions

from vehicles makes good business sense

as lower emissions normally means you

are also spending less money on fuel.

Clean and green vans help to demonstrate

an environmental commitment and

enhance your organisation’s image. The

environmental credentials of suppliers

(you!) are becoming more important to

your customers. In fact, there is an EU

Directive called the Clean Vehicles Directive

that mandates public sector organisations

to take the environmental impacts of

vehicles into account during procurement

decisions. Transport for London and

many local authorities have introduced

performance standards for low emission

vans as part of their tendering process for

contractors. By operating a low emission

van you could be a step ahead of other

companies bidding for work.

Better for air quality and healthExhaust emissions from vehicles contribute to air quality problems in cities. Poor air quality is extremely harmful

to health; it is estimated to contribute to 29,000 premature deaths a year in the UK . Many UK cities are putting in

place measures to reduce air pollution from vehicles including vans. London has introduced the Low Emission

Zone and will be introducing an Ultra-Low Emission Zone by 2020. This aims to increase the use of cleaner

vehicles in central London. In September 2020 diesel vans operating in the London Ultra-Low Emission Zone

must comply with the Euro 6 emissions standard. Compliance is achieved through imposing restrictions and

different charges on the types of vehicles that are allowed into Low Emission Zone areas. Other major cities across

the UK are introducing local measures to encourage the use of cleaner vehicles to help improve air quality.

Better for the environmentThe UK Government is committed to reducing greenhouse gas emissions and has introduced regulations and

incentives to encourage low emission vehicle use by businesses and individuals. These measures are expected to

continue in the future.

Source: Nissan


What To Consider When Choosing A Low Emission Van

For a fleet of vans it may be possible to specify vehicles differently in order to arrive at a mix of van types to deliver the variety of duties required. This allows low emission vans to play a role in your fleet which is best suited to their capabilities.

Fit for purposeTo minimise costs it is important to avoid choosing a larger or more powerful model than is required. Purchasers

should be realistic about how often the largest payload, top speed or maximum range is needed.

Factors to consider

PayloadWhat type of goods will be carried, what is the maximum payload required? Payload is often reduced slightly in alternatively fuelled vehicles due to the weight of additional components such as batteries, motors or gas tanks.

Vehicle size What load space is required? The best way to reduce emissions and cost is to use smaller and lighter vehicles. Downsizing from a larger vehicle will also open doors to more low emission van options, for example most plug-in vans are only available in the smaller van range.

Daily / annual

mileage (range)

Local runs or long distance driving? Return to base for refuelling? Refuelling station availability and the time taken to refuel/recharge can vary for the different low emission van options.

Fuel/technology

options What are the benefits of low carbon fuels? Apart from lower emissions and running costs, a quieter vehicle may be beneficial, or you may be looking to improve your company’s image.

Local

considerations

Is any preferential treatment given for a particular type of vehicle, such as concessionary parking charges or access to low emission zones? Low emission vans are often encouraged into cities by local authorities offering discounted access and parking fees.

Dealer support

Where is my closest trained dealer? Will my warranty be affected? Make sure your local service centre is able to support your alternatively fuelled vehicle. Different service frequencies have to be followed when running on biodiesel. An additional third party warranty may be needed to maintain full warranty cover of an LPG converted vehicle.

Buy or lease

What discount can you get through your dealership? Do you want a guaranteed fixed cost for vehicle ownership? The examples in this guide give whole life costs for vehicle ownership. You should look at both lease rates and ownership costs. Leasing companies can get much bigger discounts on buying vehicles compared to low volume van buyers. They offer convenient fixed monthly charges that can include maintenance. Plus many have specialists offering free advice for customers wanting to switch to lower carbon vehicles. Purchasing the vehicle yourself, especially if you can get a good dealer discount, can be cheaper, although you’ll have to absorb some risk when it comes to estimating the value of an alternatively fuelled van in future years when you want to sell it.

FlexibilityFinally, flexible thinking will help. This guide will show you that the cost and emission savings are there, you may just have to rethink how you operate your vans to take full advantage of them.


It’s easy to fall into the trap of purchasing the lowest cost van available to you.

Evaluating the cost

Since your choice of van will determine your business costs for years to come it pays to undertake a whole life

cost analysis. This includes not only the purchase cost, but also running costs (fuel, tax, maintenance, congestion

charge etc.) and how much you will get for the van when you come to sell it again. Most low emission vans will

cost you more up front, but deliver monetary savings due to their lower running costs. The key factor is whether

your annual mileage is high enough to allow the lower fuel costs to result in cost savings over the whole life of

the vehicle. The van technology Topic Sheets give example scenarios where low emission vans are also lower

cost vans.

Incentives for low emission vans

To encourage the purchase of low emission vans and assist in reducing whole life costs a number of financial

incentives are in place. National incentives have been put in place by the UK government and some councils also

offer local incentives.

INCENTIVE INFORMATION WHAT’S IT WORTH?

Plug-in van

grant

The plug-in van grant currently gives 20% off the cost of a new Ultra-Low Emission Vehicle up to a maximum of £8,000. A van which emits less that 75g CO2 per km driven is classed as an ULEV.

Up to £8,000

EV charging

pointsThe government offers a grant of 75% towards the cost of charging infrastructure installed at residential addresses.

Up to £750

Road tax The road tax rate for battery electric vans is £0. Up to £225 per year

Van benefit

charge

Using a company van for significant personal use is a taxable benefit. The government value this benefit at £3,150 per annum and a driver must pay their normal rate of tax on this. Further taxable benefits are imposed if the company also pay for the driver’s fuel. The tax payable if a battery electric van is used is reduced and will increase steadily over 5 years before reaching the same level as a conventional van.

£630 for year 2015/16

basic rate (20%) tax

payer

Enhanced

capital

allowance

Zero emission goods vehicles are eligible for 100% first year allowance until 2018. So if your business pays corporation tax at 20%, £20,000 spent on a battery electric van would reduce your tax bill in the year of purchase by £4,000. You cannot claim an enhanced capital allowance if you have received the plug-in van grant.

£4,000 on a £20,000

purchase

Fuel duty

Some clean fuels such as natural gas, LPG and biomethane are cheaper than diesel and petrol because the government applies less fuel duty to them. In the case of electricity, there is no fuel duty applied at all.

Up to 70% reduction

in fuel costs

Free or

discounted

parking

Some cities offer free or discounted parking at public charge points for electric vans.

Up to £10 per day

Congestion

chargeVans that emit 75g/km or less of CO2 receive a 100% discount on the London Congestion Charge.

£11.50 per day,

or £10.50 if using

auto-pay


Topic Sheet 1Battery Electric Vans

Technology Introduction Battery electric vans (BEVs) operate entirely on electricity using an electric motor instead of a diesel or petrol engine. A high capacity battery (usually lithium ion technology, the same as we have in our phones and laptops) powers the vans. BEVs are classed as ultra-low emission vehicles.

Fit for Purpose

• Electric vans are suitable for regular and low mileages due to their limited driving range between recharging.

• They can offer up to an 80 mile range in the real-world, which reduces if driven aggressively or with high heater use in winter. Range can be increased by using specialist routing software to optimise daily journeys for BEV use.

• The daily range can be extended by topping up the battery during the day.

• Fleets would normally drive back to base to recharge. The growing number of fast and rapid public charging stations also allow top-up charging during the day – links to charging station maps are provided in the ‘What to do next?’ section at the end of this guide.

• Due to the weight of the batteries, payload for a small panel van typically reduces by around 5 to 15% with up to 35% for a large panel van. Load space is not affected.

• Some manufacturers offer EVs on either an outright purchase or battery leasing arrangement. The battery leasing option alleviates any concerns around battery life time and potential performance degradation.

Environmental Performance

• Electric vans produce zero tailpipe emissions which makes them ideal for improving air quality in our cities and reducing CO2 emissions. BEVs offer CO2 savings of up to 35% even when the carbon intensity of electricity production is taken into account.

Market Status

• Battery electric van models are available from a growing number of mainstream manufacturers, such as the Nissan e-NV200 or the Renault Kangoo ZE and more. Due to running and purchasing incentives from the UK Government, coupled with the wide spread electricity network, electric vans are rapidly becoming a popular fleet choice.

Environmental performance

(compared to diesel)

Tailpipe CO2

100% saving

Fuel life cycle CO2

35% saving

Excellent for air

quality

Low noise

Operational performance

Range

Up to 80 miles

Recharging times

Standard: 10 hrs

Fast: 4 hrs

Rapid: 30 mins

Ideal operation

City and suburbs.

Back to base

Example fleet

City courier, light

delivery and service

engineer


Topic Sheet 1 (continued)

Battery Electric Vans

Whole Life Cost ExampleNissan NV200 1.5dCi Acenta

(Diesel)

Nissan e-NV200 Acenta

(Electric) Vehicle:

2.2t Small panel van

Annual mileage:

12,000 miles (48 miles per day)

Ownership period:

5 years

Cost saving:

£5,271 rising to £18,277 if daily

used in the London Congestion

Charging Zone

The example shows the economic case for electric vehicles is strong. The plug-in van grant, lower cost fuel, zero

road tax, lower maintenance costs and stronger residual value all work

together to offer substantial whole life cost savings. When regional incentives,

such as free entry into the London Congestion Charging Zone are included the whole life savings available become comparable to the purchase cost of the

vehicle!

Vehicle £14,695 £21,775

Plug-in van grant discount £5,213

Fuel costs £6,301 £1,911

Road tax £1,125 £0

Maintenance costs £1,716 £1,158

Resale value £2,718 £3,783

Life time cost £21,119 £15,848

Cost per mile 35.2p 26.4p

Whole life cost savings £5,271

If used in the London Congestion Zone (5 days/week)


Whole life cost savings £18,277

How we calculated the whole life cost and emissions

All costs exclude VAT. Purchase Cost Fleet News Van Running Cost tool. Fuel Consumption manufacturer’s literature with a 20% real-world small van uplift factor applied. Fuel Cost diesel 2014 average @ £1.11 per litre, electricity @ £0.10 per kWh. Maintenance Cost Fleet News Van Running Cost tool Resale Value Fleet News Van Running Cost tool Emissions UK Government fuel emission factors applied to estimated van fuel consumption.

Case Study

Fruit 4 London is a small company, with a big environmental ethos, dedicated to delivering fresh fruit to over 200 London offices every day. Following a successful vehicle trial in 2012, Fruit 4 London operates five electric Renault Kangoo ZE delivery vans. The vans typically travel 40 to 70 miles and make up to 60 delivery stops per day.

Initially attracted by the environmental benefits of zero emission vehicles, they found it was easy to make the business case work too, as Fruit 4 London director Laszlo Mulato explains, “Operating in the congestion charging zone saves us nearly £15,000 per year over the five vehicles, we are also seeing around 75% fuel savings compared to our two diesel delivery vans”. Having operated BEVs for 3 years now Laszlo has also noticed the extra business the vehicles are directly responsible for as their customers seek a more sustainable supply chain.

Fruit 4 London purchase all their electric vans on a battery leasing model, preferring the financial security and comfort of knowing that the batteries performance and lifetime are guaranteed for as long as they own the vehicles.

Which other fleets are using electric?

British Gas, Birmingham City Council, Gnewt Cargo, Loughborough University and more.

Next steps Go to the ‘What to do next?’ section at the end of this guide to find links to electric van advice sites and tools, including public charging station locations.


Topic Sheet 2Plug-in Hybrid Electric Vans

Technology Introduction A Plug-in Hybrid Electric Vehicle (PHEV) operates using a petrol engine or battery powered electric motor to drive the wheels. It can operate in pure electric mode like a battery electric van, however due to a smaller battery the mileage available in electric mode is less. Once the battery has depleted, the petrol engine starts and the vehicle operates in a similar way to a normal hybrid vehicle. Plug-in hybrid vans are classed as ultra-low emission vehicles.

Fit for Purpose

• A plug-in hybrid van offers the same functionality as a conventional van as it can operate on petrol when the battery depletes.

• Maximising the electric only mileage is key to reducing costs and maximising the environmental benefits.

• Payload is normally reduced due to the additional weight of the batteries and electric motors, but load space is unaffected.

• Fleets would normally go back to base to base to recharge. The growing number of fast and rapid public charging stations also allow top-up charging during the day – links to charging station maps are provided in the ‘What to do next?’ section at the end of this guide.


• The PHEV is a zero emission vehicle when operating in electric mode.

• The reduction in fuel and engine use means that PHEVs are very good for air quality.

Market Status

• PHEVs are very limited in supply. Mitsubishi currently offer a 4Work model of their PHEV Outlander in a 2 seat, extended load space configuration.

• From April 2015 the government is introducing different categories of ultra-low emission vehicles depending on their electric only range and tailpipe emissions. Under this banding system, PHEVs may begin to receive lower rate financial incentives than battery electric vans. So buy quickly!



Tailpipe CO2

100% saving when

operating in electric

mode

Fuel life cycle CO2

35% saving when

operating in electric

mode

Very good for air

quality

Low noise


Range in electric

mode

Up to 32 miles, plus

petrol reserve

Recharging times

Standard: 5 hrs

Rapid: 30 mins

Ideal operation

City, suburbs,

occasional

motorway.

Back to base.

High electric mode

utilisation

Example fleet

City courier, light

delivery and service

engineer



Plug-in Hybrid Electric Vans

Whole Life Cost ExampleMitsubishi

Outlander 2.2DI-D GX1 4Work

(Diesel)

Mitsubishi Outlander Hybrid

GX3h 4Work (PHEV)

Vehicle:

2.2t PHEV Van

Annual mileage:

15,000 miles (60 miles per day)

Ownership period:

5 years

Cost saving:

£1,122 rising to £15,797 if used

daily in the London Congestion

Charging Zone

The example shows the economic case for the Outlander PHEV is strong. The plug-in van grant and lower fuel

costs work together to offer substantial whole life cost savings. When regional incentives, such as free entry into the

London Congestion Charging Zone are included the savings available become

enormous.

In this example the PHEV covers 60 miles per day and assumes the electric mode is used to cover 32 miles per day.

Savings will diminish if the vehicle is not fully charged each day and/or more miles are undertaken in petrol

mode.

Unlike the PHEV SUV, the 4Work model is a commercial vehicle and as such

does not qualify for £0 rate car road tax.

Vehicle £20,895 £28,770

Plug-in van grant discount

£6,905

Fuel costs £8,519 £4,884

Road tax £1,125 £1,125





Whole life cost savings

£1,122

If used in the London Congestion Zone (5 days/week)



£15,797


All costs exclude VAT. Purchase Cost from Mitsubishi UK. Fuel Consumption manufacturer’s literature with a 20% real-world small panel van uplift factor applied. Fuel Cost diesel 2014 average @ £1.11 per litre, petrol 2014 average @ £1.07 per litre and electricity @ £0.10 per kWh Maintenance Cost Fleet News Van Running Cost tool Resale Value Fleet News Van Running Cost tool Emissions UK Government fuel emission factors applied to estimated van fuel consumption.

Case Study

The Environment Agency operates over 1,400 commercial vehicles. The Agency’s current CO2 reduction initiatives include the use of biodiesel in nearly 300 vehicles and the use of retro-fit hybrid assist systems in rear-wheel transits.

The release of the Mitsubishi PHEV Outlander provides a great opportunity for them to expand their use of low carbon vehicles, as Dale Eynon, Head of Fleet Services explains “We already use Mitsubishi Diesel Outlanders within the fleet, the PHEV is available at the same cost, and even with a low level of charging we expect to break even, the main focus for us is to maximise EV use to ensure we are maximising our CO2 savings.” The 68 PHEV Outlanders (deployed in March 2015) leave the depots fully charged, and on average will travel around 60 miles a day. The Environment Agency are currently looking to install additional charge points at key work locations and educate staff as to the locations of public infrastructure which could be used during breaks.

Next steps Go to the ‘What to do next?’ section at the end of this guide to find links to the further plug-in hybrid electric van advice sites and tools, including public charging station locations.


Topic Sheet 3Liquefied Petroleum Gas Vans

Technology Introduction Liquefied Petroleum Gas (LPG) is a fossil fuel extracted alongside natural gas and is also a by-product of the oil refining process. LPG is stored on vehicles under pressure as a liquid.

Fit for Purpose

• LPG vehicles can undertake similar duties to regular vans due to the long range available between refuelling events.

• Refuelling is easy, there are nearly 1,500 refuelling stations offering LPG across the UK.

• The vehicles are bi-fuel, so they can operate on either petrol or LPG.

• Payload is similar to a regular van and the LPG tanks are normally mounted in the spare wheel cavity. If additional mileage is required tanks can also be fitted in the load space.


• LPG vehicles are quieter and emit less harmful air quality pollutants than diesel vehicles. They offer tailpipe and fuel life cycle CO2 emissions when compared to petrol, but can emit similar CO2 per km when compared to a diesel van.

Market Status

• LPG conversions and refuelling infrastructure are well established and proven. Although LPG vehicles are available from main stream manufacturers in Europe, here in the UK you would have a petrol van retro-fitted with an LPG system by an installer approved by UKLPG – the LPG trade association.

• A vehicle manufacturer’s warranty will not cover any faults caused by the LPG system, therefore a third party warranty (usually from the AA) can be taken out.


(compared to petrol)

Tailpipe CO2

14% saving

Fuel life cycle CO2

20% saving

Good for AQ

Low noise


Miles on full tank

Up to 300 miles

(plus petrol reserve)

Ideal operation

No restrictions

Example fleet

City and long

distance courier,

delivery, service

engineer



Liquefied Petroleum Gas Vans

Whole Life Cost Example

Vauxhall Combo 1.4i 95PS (Petrol)

Vauxhall Combo 1.4i 95PS (LPG) Vehicle:


Annual mileage:

15,000 miles

Ownership period:

5 years

Cost saving:

£2,009

In this example the fuel savings from using LPG recoup the cost of the system and the additional maintenance costs – which come to £45 per 12,000 miles.

LPG conversions provide whole life cost savings when compared to petrol

vehicles and similar whole life costs when compared to diesel vehicles, with the advantage of better air quality and

lower noise performance.

Vehicle £14,413 £14,413

LPG Conversion £1,200

Fuel costs £10,846 £7,356

Road tax £1,125 £1,125




Cost per mile 36.6p per mile 33.9p per mile


£2,009


All costs exclude VAT. Purchase Cost manufacturer’s list price, LPG system installation cost from supplier quotes.Fuel Consumption manufacturer’s literature with a 20% real-world small van uplift factor applied. Fuel Cost 2014 average price, petrol @ £1.06 per litre, LPG @ £0.58 per litre. Maintenance Cost Petrol from Fleet News Van Running Cost tool with additional £45 per 12,000 miles LPG system service Resale Value Fleet News Van Running Cost tool Emissions UK Government fuel emissions factors applied to estimated van fuel consumption.

Case Study

Outdoor advertising firm Clear Channel UK has many reasons to choose autogas LPG to fuel its fleet of service vehicles. However, it was firstly the environmental angle followed by the financial advantages that are a major benefit to Clear Channel UK. Glenn Ewen, Fleet Manager, Clear Channel UK, said: “As part of our wider strategy to minimise our impact on the environment, Clear Channel UK has set a target of 84 per cent LPG usage against petrol. As part of our commitment to this target, we have installed seven bunkers at Clear Channel depots nationwide where our drivers refuel.” Typically, their autogas LPG system provides annual (running) cost savings of around 40 per cent compared to petrol fuelled vans.

Which other fleets are using LPG?

Humberside Police Force, Grass Hopper Couriers, Camden Council and more.

Next steps Go to the ‘What to do next?’ section at the end of this guide to find links to thefurther van advice sites and tools, including a link to a list of approved installers and LPGrefuelling stations.


Topic Sheet 4CNG / Biomethane Vans

Technology Introduction CNG vehicles run on Compressed Natural Gas, the same gas we use to power our central heating boilers and cookers. CNG is stored on the vehicle in pressurised cylinders and used in a spark ignition engine, which is the type of engine used in petrol vehicles. CNG is a fossil fuel; however a renewable and sustainable version of natural gas is also available called biomethane. Biomethane is produced from organic waste and can be directly used in CNG vehicles.

Fit for Purpose

• CNG vans can undertake similar duties to regular diesel vans due to the long range available between refuelling.

• Payload is often reduced by about 10% due to the weight of the gas tanks. Load space is not affected.

• A limited, but growing, number of public CNG refuelling stations are available across the UK which are capable of filling the fuel tank in a few minutes. Smaller home or depot based refuelling units can compress natural gas from the gas network directly into a vehicle’s tank overnight.

• CNG vans can have a reserve petrol tank in case you run low on gas away from a refuelling station.


• CNG vehicles are good for air quality, they are quiet and emit similar levels of CO2 to diesel vans. If operated on biomethane, then fuel life cycle CO2 savings of over 60% are available.

Market Status

• CNG vehicles are popular all over the world. Model availability is limited in the UK due to our lack of refuelling stations. CNG versions of the Iveco Daily and Mercedes Sprinter are available. Until July 2014, VW supplied the UK with a CNG Caddy, these are now available on the second hand market or a new left hand drive model could be imported from Ireland.

• Biomethane supply in the UK is limited. Blends of around 15% biomethane and 85% CNG are common. Green Gas Certificates are also available, these allow a mechanism for fleets to purchase the green credentials of biomethane (injected into the national gas grid elsewhere) when drawing gas from their local grid connection point.



Tailpipe CO2

Similar

Fuel life cycle CO2

Similar for CNG,

over 60% saving

for biomethane

Good for air

quality

Low Noise


Miles on full tank

Up to 300 miles

(plus petrol reserve)

Ideal operation

City, suburbs,

motorway. Back to

base. High mileage

Example fleet

City and long

distance courier,

delivery, service

engineer



CNG / Biomethane Vans

Whole Life Cost Example

Mercedes Sprinter 316 CDI (Diesel)

Mercedes Sprinter 316 NGT

(CNG)

Vehicle:

3.5t CNG Large Panel Van

Annual mileage:

25,000 miles

Ownership period:

6 years

Cost saving:

£1,147

The cost example opposite shows that the additional purchase cost of a CNG

Mercedes Sprinter covering 25,000 miles per annum saves the operator over £1,100 on a whole life cost basis over 6 years. With the increased purchase and maintenance costs and lower residual

value offset by the savings in fuel costs.

The price of CNG varies significantly between suppliers. Availability of low cost CNG coupled with high annual

mileage will be the key factors in achieving an overall whole life cost

saving.

Vehicle purchase cost £27,720 £30,665

Fuel cost £27,594 £21,540

Road tax £1,350 £1,350






£1,147


All costs exclude VAT. Purchase Cost manufacturer’s price list. Fuel Consumption manufacturer’s literature with a 35% real-world large van uplift factor applied. Fuel Cost diesel 2014 average @ £1.11 per litre, gas @ 0.85p/kg from CNG Services public filling station. Maintenance Cost Fleet News Van Running Cost tool adjusted with data from Mercedes for CNG Van Resale Value Parker’s guide with CNG van value reduced by 33% due to limited 2nd hand market appeal. Emissions UK Government fuel emission factors applied to estimated van fuel consumption.

Case Study

Following a successful implementation of gas refuse collection vehicles, Leeds City Council took advantage of their on-site gas refuelling facilities and incorporated seven Volkswagen Caddy vans into their fleet. The bi-fuel vehicles run on CNG with a small petrol reserve and cover domestic repairs and maintenance at households in the city. The vehicles travel less than 70 miles per day so very much within their 300 mile range, supplying the council with a 3p per mile fuel cost saving.

Which other fleets are using CNG?

Tesco, Waitrose, Arla Foods, Balfour Beatty, Camden Council and more.

Next steps Go to the ‘What to do next?’ section at the end of this guide to find links to the further van advice sites and tools, including a map of UK gas refuelling stations.


Topic Sheet 5Biodiesel Vans

Technology Introduction Biodiesel is a renewable fuel produced from vegetable crops and/or used cooking oil, and is a low carbon alternative to fossil diesel. Today fuel suppliers are allowed to blend biodiesel, manufactured to the EN 14214 standard with regular road diesel up to 7%. This 7% blend, known as B7, is compatible with any vehicle. Some manufacturers design their vehicles to operate on higher biodiesel blends, normally up to a 30% blend (B30).

Fit for Purpose

• There are no operational restrictions. A vehicle running on biodiesel also maintains the ability to run on regular diesel, which can be used in the same tank.

• Vehicle payload and load space are unaffected.

• Biodiesel blends are mainly available from supplier facilities. If these are not convenient, a storage tank and dispenser can be installed at your depot.

• A vehicle’s fuel delivery system has to be designed to work with biodiesel and manufacturers will recommend more frequent maintenance.

• A good quality biodiesel, manufactured to the EN 14214 standard should be used.


• Tailpipe emissions are unaffected, but as biodiesel is a renewable fuel, fuel life cycle CO2 reductions of around 28% are available when using B30 manufactured from used cooking oil.

• Biodiesel vehicles normally emit less particulate matter with similar, or marginally increased, NOx emissions.

• You should ensure that biodiesel used is from sustainable sources. Biodiesel manufactured from used cooking oil has a very low environmental impact as it is a waste material and does not require additional food crops to be grown to produce it.

Market Status

• High blends of biodiesel are not widely supported by vehicle manufacturers, this coupled with greater maintenance frequencies and variable biodiesel costs means that higher blends of biodiesel are not widespread. Some manufacturers such as Peugeot and Citroen support blends of up to B30 in their HDi engine range.



Tailpipe CO2

Similar

Fuel life cycle CO2

28% saving (B30)

from used

cooking oil

Similar air quality

Similar noise


Miles on full tank

Same as diesel

Ideal operation

City, suburbs,

motorway.

Back to base

Example fleet

City and long

distance courier,

delivery, service

engineer


Topic Sheet 5 (continued) Biodiesel Vans

Whole Life Cost ExamplePeugeot

Partner L1 1.6HDi 92 HP

(Diesel)

Peugeot Partner L1

1.6HDi 92 HP (Biodiesel B30) Vehicle:


Annual mileage:

20,000 miles

Ownership period:

5 years

Cost saving:

Similar cost

Whilst biodiesel can cost less than fossil diesel the additional maintenance requirements coupled with higher fuel

use (due to the lower energy content of biodiesel) means that whole life costs

can be similar.

Vehicle £14,142 £14,142

Fuel costs £10,716 £10,331

Road tax £1,125 £1,125





Whole life cost savings £25


All costs exclude VAT. Purchase Cost Fleet News Van Running Cost tool. Fuel Consumption manufacturer’s literature with a 20% real-world small van uplift factor applied. Fuel Cost diesel 2014 average @ £1.11 per litre, biodiesel B100 @ £0.92 per litre (average of supplier quotes). Maintenance Cost Diesel from Fleet News Van Running Cost tool with additional biodiesel maintenance items as advised by Peugeot Resale Value Fleet News Van Running Cost tool Emissions UK Government fuel emission factors applied to estimated van fuel consumption.

Case Study

ATX Ltd is a logistics company operating ten vans. Due to the negative impact of escalating fuel costs on their business, ATX decided to invest in a biodiesel manufacturing plant and secure waste cooking oil supply contracts. Mitch Sills ATX Fuels Distribution Manager explains how their business has changed in recent years, “Since 2004, when we first started out manufacturing our own fuel, we have gradually improved the quality of our biodiesel, which now exceeds the EN14214 standard. Using the correct winterizing agents we are also capable of running 100% biodiesel all year round. Being lower cost than forecourt diesel, the demand for our product is growing at such a rate our business is migrating from a logistics company to a biodiesel supplier.”

The filling pump at ATX allows real time blending of biodiesel and diesel to suit the customer’s vehicle and requirements. ATX run seven Ford Transit vans on blends of up to B100, although this does void the manufacturer’s warranty, they report no reliability problems. They replace vans every 18 months, with each covering around 60,000 MPA. This equates to an annual fuel cost savings of over £1,400 and a tailpipe emission savings of 21 tonnes of CO2 per van.

Which other fleets are using biodiesel?

Environment Agency, McDonald’s UK, Commercial Group, London Borough of Hackney and more.

Next steps Go to the ‘What to do next?’ section at the end of this guide to find links to the further van advice sites and tools, including a link to biodiesel station locations and pricing.


Best Practice - Making Existing Van Operations More Efficient

Whatever type of vans and fuels are used in your organisation, focusing on understanding the day-to-day van

performance and making it more efficient will help to reduce fuel costs and emissions.

Fuel ManagementUnderstanding fuel usage in your fleet is the first step in reducing it. You could appoint a ‘Fuel Champion’ who will monitor and track fuel use and costs and drive fuel efficiency improvements.

Environmental

BenchmarkingGet involved with and learn best practice from other fleet operators. You can join a benchmarking scheme, such as EcoStars, or join one of the fleet operator associations.

Driver BehaviourThe first easy win when reducing fuel costs is through encouraging employees to drive more economically. This not only reduces your fuel bills, but has the additional effects of reduced accidents and maintenance costs.

Vehicle Maintenance

Maintaining your vehicles properly helps to keep them running efficiently. For example, a 20% drop in tyre pressure can result in a 2% increase in fuel consumption. Tyre labels provide an easy to understand indicator of tyre performance when it comes to fuel economy and wet grip.

Telematics

Installing telematics onto vehicles gives you an insight into your working patterns, allowing more efficient routing of vehicles, elimination of non-business mileage, highlighting areas for improvements, and vehicle or driver based performance reporting.

Eco Technology

A growing number of fuel reduction retro-fit technologies are available for fleet vehicles. The systems should save money and emissions and a reputable system provider should be able to prove this to you before you part with your money.

Driver aids such as the Ashwoods Lightfoot system, provide real time visual and audible feedback to the driver, improving driving behaviour which commonly results in CO

2 and fuel savings of between 10% and 20%. The system sends regular performance reports to drivers and managers.

Speed limiters reduce fuel consumption by reducing the maximum driving speed. Driving at 70mph uses 9% more fuel than at 60mph and driving at 80mph uses 25% more fuel than driving at 70mph.


Low Emission Van Summary Matrix

The differences between the low emission van technologies discussed in this guide are summarised in the table

below. Key: Better than Diesel Similar to Diesel

Battery Electric PHEVCNG /

BIOMETHANELPG

B30 Biodiesel (30% Biodiesel

blend in diesel)

Whole life cost

Cost improvements dependent on annual mileage and ownership period

Financial

incentives

Vehicle and infrastructure funding. 100% London congestion charge discount.

Regional council schemes for discounted/free parking.

Reduced fuel duty rate

Reduced fuel duty rate

NoneEnhanced capital allowance OR Van grant on purchase.

Reduced van benefit charge until 2020. No fuel duty applied. £0 road tax

No fuel duty applied to electricity

Market status Available, around 15 models

One vehicle model only

(Outlander 4Work)

Two models available

Conversions available for petrol

vans

Some models warranted for biodiesel use

Example

vehicles

Nissan e-NV200, Renualt Kangoo,

Allied eBoxer

Mitsubishi Outlander 4Work

Merc Sprinter, Iveco Daily

Retrofit Peugeot Partner, Boxer

Ideal operating

locationCity, suburbs

City, suburbs and occasional

motorwayCity, suburbs, motorway

Ideal refuelling

locationBack-to-base No restrictions Back-to-base

Example use City courier, light delivery and service engineer

City and long distance courier, delivery, service engineer

Range between

refuelling 60-80 miles

Around 30 electric miles, then petrol

reserve

Up to 300 miles, then petrol reserve

Up to 300miles, miles, then petrol

reserve

Similar

Payload impact

5-35% reduction (model dependent)

20% reduction

10% reduction

Similar

Similar

Refuelling

considerations

Public charging available but limited.

Variable charging times. Petrol reserve for plug-in hybrid

Limited public infrastructure

wWidespread infrastructure

Limited public infrastructure

Tailpipe CO2

emissions from

the vehicle

Zero emission

Zero emission when in battery electric mode

Similar when using natural gas

100% when using

biomethane

14% saving from petrol

28% saving

Fuel lifecycle

CO2 emissions

35% saving

35% saving when in battery electric

mode

Similar when using natural gas

over 60% from biomethane

20% saving from petrol

26% saving

Air quality

emissions

Zero emission

Zero emission when in battery electric mode

Good for air quality emissions

Good for air quality emissions

Similar

Ultra-Low

Emission Vehicle

status

Yes Yes No No No

Go to www.lowcvp.org.uk/lev

Van Cost & CarbonCalculator


What To Do Next?Assess The Savings For Yourself

The VC3 Van Cost & Carbon CalculatorReview the cost and carbon performance of low emission vans over your operating conditions by entering some

simple information into the VC3 Van Cost & Carbon Calculator. The tool will present you with a tailored report

showing the cost and emission impact of operating different types of vans in your fleet.

Pick your

• van size

• typical driving routes

• driving style

• number of years you want

to own your vehicle

• annual mileage

Discover your

• whole life cost savings

• emission savings


Links To Further Information

Some useful links to further information on each topic covered in this guide are provided below, once you

have done some of your own research, it’s time to contact your local dealer and start saving money, saving the

environment and improving your fleet image!

General Advice And Calculator Tools

www.cenex.co.uk/vc3Cenex provides a tool for allowing operators to calculate emission and cost savings available from alternatively fuelled vans

www.lowcvp.org.uk/levThe LowCVP provides an advice site for operators looking to make the switch to low emission vans

www.vanchooser.netVan Chooser allows users to search for a van type that meets their requirements and can display list price, emission performance, fuel costs and much more

www.fleetnews.co.uk/vans/

tools/The Fleet News website has whole life cost and emission calculator tools, best practice case studies and much more

www.ukconversionfactors

carbonsmart.co.ukThe UK Conversion Factors site provides official UK Government recommended factors for converting your fuel use into carbon emissions

Battery Electric And Plug-In Hybrid Electric Vehicles

www.zap-map.comZap Map contains a list of publically available charge points, vehicle model availability and charge point provider contact details

www.goultralow.com/

commercial-vehicles-fleetThe Go Ultra Low web site provides information about switching to ultra-low emission vehicles and vehicle availability

www.ukevse.org.ukUKEVSE, the electric vehicle supply equipment association, provide a guide for procuring charge points including equipment considerations and location choice

www.gov.uk/government/

publications/plug-in-van-grant The Office for Low Emission Vehicles (OLEV) provides a list of vans that are eligible for the Plug-in Van Grant

LPG Vehicles

www.drivelpg.co.ukDrive LPG provides advice and information about converting to LPG including a list of approved installers and UK refuelling stations

CNG Vehicles

www.gasvehiclehub.orgThe Gas Vehicle Hub provides a map of UK CNG refuelling stations, a list of vehicle model availability and gas vehicle case studies plus much more

Biodiesel Vehicles

www.biodieselfillingstations

.co.uk

Biodiesel Filling Stations provides a list of filling stations and biodiesel blends available by UK area, with links to suppliers websites where many show pricing and other information

The information and advice given is based on a range of public domain sources, data supplied by companies, in-house knowledge and analysis and engagement with stakeholders. While the information is provided in good faith, the ideas and analysis presented in this guide report must be subject to further investigation, and take into account other factors not presented here, before being taken forward. Therefore the authors disclaim liability for any investment decisions made on the basis of this guide.

Low CarbonVehicle Partnership

3 Birdcage WalkLondonSW1H 9JJ

[email protected]+44 (0)20 7304 6880

CENEX

Holywell ParkLoughborough UniversityAshby RoadLoughborough LE11 3TU

www.cenex.co.uk+44 (0)1509 635750

ConnectCollaborate Influence

Automotive

Low cvp+van+guide+with+ammendments+19.06.15