Challenges in Integrating Alternative Fuels
Loreta Dainytė-Bužinskė, head of the sustainability and quality department, discusses the challenges faced when assessing options for adopting and integrating alternative fuels. “Integrating alternative fuel solutions demands meticulous groundwork, beginning with selecting the most suitable fuel type—a decision influenced by various interdependent factors. Among these factors, financial costs are the most important. Comparing fuel prices across various types, gas stations, and even countries or regions presents a significant challenge itself, but this is only the tip of the iceberg. It’s imperative to thoroughly evaluate all components contributing to the final cost of transitioning to cleaner fuels. This includes assessing the fuel type’s efficiency, the necessity for additional equipment or even new vehicles, potential increases in vehicle servicing and maintenance expenses, alterations to the vehicle’s lifespan, insurance-related adjustments, and potential tax benefits.”
Loreta emphasizes that in addition to the mentioned direct sources that determine the price, infrastructure issues are no less important. This includes whether the supply network for a certain type of fuel is geographically conveniently located and covers the needs, and also whether these fuel supply sources guarantee that their alternative fuel is safe, has approved technologies, and provides the required quantities at the filling station. Even climatic conditions can influence the choice; for example, at low temperatures (~-30°C), the density of biodiesel can change and damage the tractor engine. In addition to all this, it is important to be well acquainted with the current legal environment (e.g., the Fit for 55 package) governing existing and potential restrictions on diesel-powered vehicles, as well as current and anticipated subsidies and incentives for using alternative fuel solutions.
The third, equally crucial aspect relates to the value proposition for customers. Currently, cleaner fuel sources are a more expensive alternative to diesel-powered vehicles in many regions, so the provision of less polluting transportation services is possible only based on a mutual agreement between the customer and the carrier. Once this decision is made, ensuring that specific transports for particular customers are conducted using the chosen alternative fuel type becomes imperative, with the accurate systematization of information and provision of evidence.
As Loreta concludes, “The adoption of alternative fuels inevitably demands updates and adjustments across nearly all key operational processes of the organization. Therefore, embracing this path of decarbonization undoubtedly represents a strategic decision for the organization, reshaping fundamental principles of the business model and sending a clear signal to the market.”
Prospects in the Transport Sector
While emission-reducing solutions to optimize operations and enhance efficiency can yield positive results, their potential is limited. Furthermore, infrastructure-related challenges hinder the swift electrification of fleets. In light of these limitations, the adoption of alternative fuels such as biodiesel, HVO fuel, and BioLNG emerges as a key strategy to mitigate GHG emissions—a direction both stakeholders and ourselves are focused on.
Pressure from customers, international regulations, and the urgency of addressing climate change demand immediate action. With this perspective in mind, we anticipate the transport sector market, along with its associated infrastructure, to respond to these needs. The future promises to be dynamic, marked by rapid changes and expansions in supply to meet the ever-increasing demand. We are thrilled to be part of this journey and to contribute to creating a more sustainable future.
