Decarbonization for fleets is becoming increasingly critical as new state and federal regulatory requirements are introduced, demanding cleaner operations to reduce the freight industry’s overall carbon emissions. With the transportation sector responsible for producing 28% of all greenhouse gas emissions in the U.S., it is incumbent upon transportation companies to make strides toward achieving lower emissions, and fleet electrification will, by all accounts, be a critical part of that process.
However, the transition toward electric vehicles (EVs) is not as simple as it may initially sound. The high costs of replacing current diesel equipment with electric semis are prohibitive for many fleets, and the process is further complicated by the infrastructure requirements needed to ensure that chargers are available and maintenance is accessible for EVs when needed. The Clean Freight Coalition released a report in early 2024 suggesting that the cost of building the charging infrastructure necessary to power a fully electric truck fleet for the U.S. could be as much as $1 trillion. While that figure may be inflated, it underscores the importance of achieving a practical, scalable approach to electrification for fleets.
Range Energy is one company that is committed to achieving just that. To make electrification goals more achievable for fleets, Range Energy has introduced a hybrid approach to electrification that can be bolted onto any existing dry van or refrigerated trailer, allowing fleets to use their current equipment with a small modification to meet decarbonization goals. In addition to helping fleets comply with regulatory requirements, this type of approach provides immediate cost savings and efficiency gains for companies while making it easier to achieve and scale their decarbonization efforts.
While a fleet may not have to achieve 100% electrification to comply with state and federal mandates, there is no question that decarbonization efforts are paramount for fleets to take steps in the right direction.
Why Electrification Is Essential for Decarbonization
With the amount of greenhouse gas that the transportation industry contributes to national and global emissions, the world is beginning to take note and mandate additional steps toward reducing the carbon footprint of fleets. Electrification is viewed as the primary alternative to help fleets comply with new regulations and meet corporate sustainability goals. However, the pressure also comes from a fleet’s shipper customers, who are placing greater emphasis on building cleaner, more efficient supply chains and ensuring that they work with partners who will help them meet their sustainability goals.
The Challenges of Full Fleet Electrification
While fleets must take steps toward electrification, several barriers stand in the way when implementing new electric technology and ensuring that support is available to maintain it. Among them, three prominent challenges are at the forefront:
High Costs & Infrastructure Requirements
The financial barrier associated with purchasing EV tractors can be insurmountable for many fleets, as electric semis can cost up to $250,000 more than a traditional diesel unit. However, the expense doesn’t end at the purchase, as once the EVs are adopted, the charging infrastructure required to keep them moving is another significant cost that fleets must plan around.
Operational Limitations
While many diesel tractors can run up to 2,000 miles or more on a single fill-up, EV battery technology has a long way to go to catch up. On the high end, an electric semi may achieve a range of around 500 miles on a full charge, making additional stops necessary for the driver — who often spends hours per stop — to cover the same distance. For drivers, any time not spent on the road translates to lost wages and overall dissatisfaction.
Furthermore, routing considerations must be made to ensure that chargers will be available when the EV’s range runs low. The additional stops must be factored in when planning delivery dates and times, as the time from pickup to delivery will need to be extended compared to routing a diesel unit.
At the end of the day, tractors are utilized more frequently than trailers, which may have to sit at a yard or dock for extended periods. Therefore, it’s critical for tractors to achieve as much range as possible to maximize their time on the road. By electrifying the trailer unit (as we will detail below with Range Energy’s solution) rather than investing in an EV tractor, companies can utilize the tractor equipment they already have — allowing them to avoid major disruptions to their fleet operations while becoming much more efficient and saving money in the process.
Right-Sized Battery
Determining the best battery pack size is an additional consideration for fleets, as this will impact range and charging frequency. Total range assumes that the full charge of the battery is used each time, so if a fleet purchases a battery that is larger than needed, they will pay roughly $200 extra per kilowatt-hour (kWh) and lose range from the additional weight of a larger battery.
For example, a Tesla EV tractor battery is typically 800–900kWh, which provides up to 500 miles of range. However, since most drivers only cover around 300–400 miles per day, companies that select a 900kWh battery would likely end up paying much more than necessary when a smaller battery would meet their needs. Additionally, larger batteries often require rapid charging to avoid excess downtime, translating to added costs and potential electrical grid constraints. By electrifying trailer units (with much smaller batteries) rather than tractors, fleets can save charging time and costs associated with fast chargers.
Technology Insertion Cycles
When purchasing EV tractors, fleets also need to consider the replacement timelines for their existing units. This will be predicated upon the depreciation of the units, fleet growth, OEM delivery slots, etc., so this will likely vary from one tractor to another. However, by electrifying trailers that can be used with a company’s existing tractors instead of purchasing EV tractors, fleets can achieve significant cost savings while dramatically reducing carbon emissions and avoiding major disruptions to operations and the downtime associated with replacing tractors.
While the challenges to electrification are undeniable, the risks associated with non-compliance will range from penalty fees to loss of business in states where they do not comply, in addition to lost business from shipping partners who are prioritizing cleaner, more efficient supply chains.
The Hybrid Approach: A Practical Solution for Decarbonization
Considering the challenges of adopting a fully electric fleet, companies like Range Energy are taking an alternative, hybrid approach to electrification by equipping traditional trailers with electric propulsion to improve overall efficiency while maintaining traditional trailer functionality. Range Energy’s ePTS (Electric Powered Trailer System) solution bolts onto any traditional dry van or refrigerated (reefer) trailer, converting it into a hybrid unit that provides immediate fuel savings, reduced emissions, and increased efficiency without requiring significant operational changes. This translates into immediate cost savings and quick ROI compared to investing in fully electric solutions.
3 Ways Range Energy’s ePTS Drives Practical Decarbonization
Range Energy’s ePTS provides a scalable path to decarbonization while offering three immediately tangible benefits for fleets:
Cost Savings & Increased Fuel Efficiency
Range Energy’s ePTS boosts energy efficiency and miles per gallon by up to 70% and reduces fuel costs by up to 40% — providing immediate cost savings and emissions reductions for fleets.
Ease of Implementation & Scalability
The ePTS is incredibly simple to install, essentially serving as an easy bolt-on addition to any traditional dry van or reefer trailer. It can be installed within a few short hours using standard tools, making it a quickly scalable solution for fleets looking to gradually electrify their fleets over time.
Enhanced Driver Experience and Safety
The benefits of the ePTS extend to drivers as well, with smoother acceleration, greater stability, and regenerative braking that adds power directly back to the battery for improved efficiency and performance. The ePTS can also be charged during existing trailer dwell time, so drivers won’t have to wait hours before returning to the road. Drivers rave about the enhanced comfort and safety of the ePTS, making for an all-around better driving experience.
The Future of Hybrid Technology in Fleet Electrification
Due to the expense and complexity of electrifying an entire fleet, the transportation industry is witnessing increased interest in hybrid technology as a stepping stone toward full electrification. Hybrid solutions like Range Energy’s ePTS help bridge the gap between traditional diesel equipment and their EV counterparts while allowing them to comply with new regulations like the California Air Resources Board mandate — and offering immediate cost savings. As new emissions requirements are rolled out by various states and the federal government, the ePTS provides a flexible alternative to scaling decarbonization efforts for small, medium, and large fleets alike.
Finally — A Flexible & Scalable Approach to Fleet Decarbonization
The shift toward fleet electrification will be critical as new mandates and priorities call for decarbonization of the transportation industry. While the costs associated with implementing fully electric fleets are cost-prohibitive for many companies, solution providers like Range Energy provide a practical alternative and are opening the door to a more scalable, flexible shift toward electrification.
Range Energy’s ePTS can bolt onto any dry van or reefer trailer, eliminating the need for companies to invest in all-new equipment or overhaul their infrastructure. This allows them to comply with new regulatory requirements and meet their shipper partners’ call for greater sustainability.
When it comes to commercial fleet electrification, the future is hybrid. Range Energy’s ePTS can help fleets pivot to a more sustainable future while improving operational efficiency and increasing driver retention thanks to better safety and less downtime.
To learn more about how Range Energy’s ePTS can help your fleet bridge the gap to decarbonization, complete our pilot interest form to have a team member reach out to schedule a demo.