The Future of Mobility in the UK - March 2021 - UKPIA
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The Future of Mobility in the UK | March 2021 Disclaimer: This report has been prepared by UKPIA by its own assessment and does not represent the combined views of its members. All data shown in tables and charts are UKPIA’s own data, except where otherwise stated and cited in endnotes, and are copyright © of the UK Petroleum Industry Association. This report is the intellectual property of UKPIA and may not be published or distributed without prior written permission. The modelling and results presented are based on information provided by third parties, upon which UKPIA has relied in producing its report and forecasts in good faith. Any subsequent revision or update of those data will aff ect the assessments and projections shown. This is an illustrative report for information only and is intended to indicate how the downstream oil sector might operate in a future scenario; there may also be other potential operations and many alternative scenarios. UKPIA disclaims all liability and responsibility for any decisions or investment which might be made on the basis of information provided in this report. There should be no implied commitment from UKPIA (or any of its member companies) to operate using the processes described; how businesses are developed and operated is a commercial matter for individual companies. 2
Contents 1. Executive Summary 4 2. Introduction 6 3. Transport: Energy Provision, Storage, and Conversion 12 3.1. The Greenhouse Gas Emission Reduction Challenge 14 3.2. Transport Energy Provision in the UK 14 3.3. Other Environmental and Socioeconomic Impacts 17 4. The Energy Vector Transition 20 4.1. Systems Approach to Decarbonisation 22 4.2. Product Lifecycle GHG Emissions 22 4.3. Transport Fuels: from Fossil-derived to Renewable 26 4.4. Other GHG Reducing Initiatives 33 5. Mobility Paradigm Shift 36 5.1. COVID-19 Movement Restrictions 38 5.2. Hyper-Proximity 39 5.3. Mobility as a Service 39 5.4. Blockchain 40 5.5. Consumer Convenience Technology 41 5.6. Micromobility 41 5.7. Connected and Autonomous Vehicle Technology 41 6. Changes on the Road 44 6.1. Powered Light Vehicles 46 6.2. Cars & Vans 46 6.3. Buses & Coaches 50 6.4. Heavy Goods Vehicles 51 6.5. Forecourts of the Future 52 7. Changes off the Road 56 7.1. Rail 58 7.2. Non-Road Mobile Machinery 59 8. Changes at Sea 60 8.1. Inland Shipping and Leisure Craft 62 8.2. International Shipping 62 8.3. The Port of the Future 65 check numbers atChanges 9. end in the Air 66 9.1. Domestic Aviation 68 9.2. International Aviation 68 9.3. The Airport of the Future 70 10. Summary of Report Findings 72 11. Glossary 74 12. References 75 3
The Future of Mobility in the UK | March 2021 1. Executive Summary The UKPIA Report “Future of Mobility in the • Second, the transition itself is considered. UK” provides a comprehensive assessment While, to date, policies have been of transport decarbonisation to identify successful in reducing vehicle tailpipe important issues, challenges and possible emissions and increasing biofuel content in solutions on how the UK’s biggest emitting petrol and diesel fuels, a change of greater sector can transform to meet Net-Zero magnitude will be needed to decarbonise by 2050. The report expands on themes more comprehensively. The Energy first raised in UKPIA’s 2020 Transition, Vector Transition looks at the importance Transformation, and Innovation Report (the of accounting for all GHG emissions in “TTI Report”) and goes into more detail on transport – from manufacture of vehicles and transport-specific issues, offering technical their energy vectors, and even the recycling findings that offer greater evidence in of some materials used, to highlighting the support of UKPIA’s policy suggestions in importance of a systems-based approach the TTI Report. The findings can help shape to decarbonisation. future transport decarbonisation decisions by policymakers, consumers, and those • While technologies and how we introduce industries most closely involved in the UK’s them will be absolutely vital to decarbonising transport energy system and makes clear the transport sector – as well as developing the central role of the downstream sector as opportunities that could make the UK a partner in transport decarbonisation. world leader in new technologies – there are other trends that can play an important • By considering first today’s transport role too. Blockchain, the rise of mobility- sector – which emits over a third of the as-a-service, changes in where we work UK’s GHG emissions – the report shows from, and autonomous vehicles may all the many different ways that transport contribute to reduced overall demand for is used: from electric scooters making transport energies and make the enormous local deliveries to planes flying thousands task of decarbonisation more manageable of miles. Development of new and while improving economic performance deployment of existing technologies can and consumer experience. replace fossil fuel use over time, but given how transport is used, each technology • Drawing together the themes explored will have challenges to overcome and before, later chapters present snapshots some uses will be better suited for certain of how each transport sector – roads, rail, technologies. aviation and shipping – might evolve as the UK strives to reach its Net-Zero by 2050 target. 4
The report’s final chapter brings together The UK’s downstream oil sector is already at technical and practical findings from each the very heart of transport, both as a central chapter. While the findings are focussed, part of product delivery but also in ensuring an overarching theme is the sheer scale of the mass delivery of energy vectors to the change needed. The following overall views consumer. Changes are already being made have been reached: to products and consumer offerings to develop new, low and zero-carbon energy solutions for transport. Companies – driven 1. To meet Net-Zero, all stakeholders by strong competition, continuing demand must work together in pursuing all for energy for transport in all its forms, technology options with low carbon and the need to operate sustainably - will fuels and hydrogen (both blue and green), continue to innovate and work across all along with battery electrification, having transport modes to deliver fit for purpose important roles to play across the UK’s products that improve logistics, reduce transport modes. GHG emissions through the whole supply chain, and ultimately drive a transformed 2. A systems approach, lifecycle analysis transport sector. of transport GHG emissions, and frank assessment of transport mode energy provision, storage, and conversion demands are essential ingredients in An overarching theme of a transport decarbonisation strategy to ensure significant, achievable GHG this paper is the sheer emissions reductions at the lowest societal cost. scale of change needed 3. A mobility paradigm shift is required, and indeed expected in with new technologies and models the Future of Mobility disrupting existing mobility offers to improve transport energy efficiency. 5
The Future of Mobility in the UK | March 2021 2. Introduction As a focal point of manufacturing, energy In the TTI Report, the progress made to provision, powertrain technology, information decarbonise the UK downstream oil sector technology, consumer convenience, and itself was highlighted along with the potential regulation, the transport sector is one of means to meet Net-Zero. The sector has the most complex and diverse sectors in made great strides in recent years in the the UK economy. In order to meet the UK’s energy vectors it provides – including liquid ambitious Net-Zero by 2050 objective, all fuels and electricity: stakeholders must work together in pursuing all technology options to reduce today’s • UKPIA member companies are developing transport energy demand, which stands at their own EV charging brands such as bp over 600 TWh/year.1 pulse and Shell Recharge and members are seeking to expand their rapid charging Today, more than 96% of energy for transport networks in particular as well as creating is provided by the downstream sector, dedicated EV charging hubs. The early making it the primary energy provider for adaptation of refuelling hubs is shown in UK transport.1,2 that there were over 1000 public charging 6
devices on UK forecourts and service However, while changes are already being stations at the end of 2020 according to made, the pace of change needs to increase, figures from ZapMap.3 delivering not just incremental improvements but changes in energy vectors, supply • Continuing renewable fuel blending in chains, infrastructure and consumer 2019 saved a total of 5.37 Mt CO2e, which behaviours. A systems-based approach, is equivalent to taking 2.5 million cars lifecycle analysis of emissions, and a frank off the road for a full year, both of which assessment of transport energy provision, demonstrate the sector’s commitment storage, and conversion demands are all – in and ability to contribute to transport UKPIA’s view – essential ingredients in the decarbonisation.4 decarbonisation of transport. What is clear at these early stages is that With new technological developments, all transport energy vectors will need to be and government interventions – as set out pursued, with no single technology able to in the Ten Point Plan for a Green Industrial meet our future mobility demands for every Revolution – the rate of change is only set community, every industry, and ultimately to increase. every journey. 7
The Future of Mobility in the UK | March 2021 Figure 1: Potential energy vector suitability for transport modes – further detail on classifications can be found in the table which follows High viability HEAVY HEAVY HEAVY RANGE Possible viability LONG RANGE LONG RANGE HEAVY DUTY DUTY HEAVY DUTY LONGRANGE LONG RANGE (see notes) DUTY DUTY Low viability LONG LIGHT LIGHT LIGHT LIGHT DUTY DUTY Notes LIGHT DUTY DUTY DUTY 1. Depending on Infrastructure AIR AIR AIR SEA SEA SEA RAILRAIL RAIL ROADROAD ROAD 2. With in-journey AIR SEA AIR RAIL charging such as overhead cable Battery HEAVY HEAVY HEAVY Battery 3. Energy vector Battery HEAVY HEAVY RANGE SHORT RANGE SHORT RANGE DUTY SHORT RANGE DUTY RANGE DUTY electrification DUTY electrification suitability electrification depends DUTY on route / distance SHORT 4. Hybrid fuel-battery SHORT LIGHT LIGHT DUTY LIGHT approach effective LIGHT LIGHT DUTY DUTY DUTY 5. For routes that DUTY cannot be electrified 6. For existing ICE fleet HEAVY HEAVY LONG RANGE LONG RANGE DUTY DUTY HEAVY LONG RANGE HEAVY LONG RANGE DUTY DUTY LIGHT LIGHT DUTY DUTY LIGHT LIGHT DUTY DUTY AIR SEA RAIL ROAD AIR SEA RAIL ROAD RAIL ROAD AIR SEA RAIL ROAD Low-carbon HEAVY HEAVY Hydrogen SHORT RANGE SHORT RANGE DUTY DUTY fuels Low-carbonHEAVY HEAVY Hydrogen SHORT RANGE DUTY Hydrogenfuels LIGHT SHORT RANGE DUTY LIGHT DUTY DUTY LIGHT LIGHT DUTY DUTY 8
High viability High viability HEAVY HEAVY LONG RANGE Possible viability LONG RANGE DUTY Possible viability DUTY (see notes) (see notes) Low viability Low viability LIGHT LIGHT DUTY DUTY Notes Notes 1. Depending on 1. Depending on Infrastructure Infrastructure RAIL ROAD AIR SEA RAIL AIR ROAD SEA 2.RAIL With in-journey ROAD 2. With in-journey charging such as charging such as overhead cable overhead cable Battery Battery HEAVY HEAVY 3. Energy vector 3. Energy vector SHORT RANGE SHORT RANGE DUTY DUTY suitability depends electrification electrification on route / distance suitability depends on route / distance 4. Hybrid fuel-battery 4. Hybrid fuel-battery approach effective approach effective LIGHT LIGHT DUTY DUTY 5. For routes that 5. For routes that cannot be electrified cannot be electrified 6. For existing ICE fleet 6. For existing ICE fleet HEAVY LONG RANGE HEAVY HEAVY LONG RANGE LONG RANGE DUTY DUTY DUTY LIGHT LIGHT LIGHT DUTY DUTY DUTY SEA RAIL ROAD AIR SEA RAIL ROAD AIR SEA RAIL ROAD AIR SEA RAIL ROAD HEAVY Hydrogen SHORT RANGE HEAVY HEAVY Hydrogen DUTY SHORT RANGE SHORT RANGE DUTY DUTY LIGHT LIGHT DUTY LIGHT DUTY DUTY 9
The Future of Mobility in the UK | March 2021 Summary of the Ranges and Duty Cycles of the Main Transport Modes The primary consumer transport mode accounting for 77% Passenger of the distance covered by consumers in 2019.5 The majority Car of journeys are
Heavy duty transport for commercial activity such as Non-Road tractors and construction vehicles. Significant energy Off- Mobile demands owing to challenging surfaces and need to pull Road Machinery and/or power supplementary equipment. Generally feature shorter ranges than other heavy duty vehicles. Fixed route transport for urban and suburban passenger Commuter transport. Efficiency gains compared to road transport Rail due to removed tyre deformation resistance. High energy Rail demands due to vehicle mass requirements. Longer-range fixed route transport for intercity travel. Intercity and High energy demands due to vehicle mass and distance Freight Rail requirements. Small boats with low energy and range demands. Light Light and and leisure boats represent
The Future of Mobility in the UK | March 2021 3 Transport: Energy Provision, Storage, and Conversion 12
Transport is at the heart of the greenhouse gas emission (GHG) reduction challenge. Even with improvements in efficiency, more electric vehicles on our roads, and a greater percentage of biofuels blended into the fuel – sector GHG emissions have remained steady since 1990.7 The downstream sector is experienced in the manufacture and provision of all energy vectors and has demonstrable expertise in the accounting of their net well-to-tank (WTT) GHG emissions. Furthermore, in 2019, the UK’s transport sector consumed 659 TWh of energy, of which 96% was provided by the downstream sector. Decarbonisation of transport will be vital in reaching the UK’s Net-Zero target, however, transport has other environmental impacts that must be considered as part of this transition, e.g. air quality, UK supply chain resilience, and raw material demand. 13
The Future of Mobility in the UK | March 2021 3. Transport: Energy Provision, Storage, and Conversion 3.1 The Greenhouse Gas Emission Not all emissions for the transport sector Reduction Challenge occur in-use and it is important to note In May 2019, the Climate Change Committee the manufacture of a vehicle itself also has (CCC) published their Net-Zero Report,8 significant cradle-to-grave GHG emissions and accompanying technical report,9 (see section 4.2.1)1 that must be accounted recommending to the UK Government a for, particularly when considering a Net- new emissions target for the UK: Net-Zero Zero target. Currently, all motored transport greenhouse gases (GHG) by 2050. This target modes have a lifecycle GHG emissions – a response to increased concentration impact – even if their tailpipe GHG emissions of GHG emissions from human activity are zero – and to meet Net-Zero, it is – was subsequently adopted by the UK these emissions right across the lifecycle Government and enshrined in law.10 of all vehicles and their use that must be By 2019 the UK had, in fact, already initiated decarbonised. Climate scientists are clear economy-wide decarbonisation, with most that GHG reduction opportunities missed sectors reducing their GHG emissions vs in the short-term will be more difficult and 1990 levels, but transport in-use emissions costly to abate in the long-term. have remained broadly steady. There have been improvements – notably in the 3.2 Transport Energy Provision in the UK efficiency of internal combustion engine (ICE) In 2019, the UK’s transport sector consumed technologies – that have improved average 659 TWh of energy, of which 96% was per-vehicle emissions. However, sector GHG provided by the downstream sector,2 with the emissions have remained level as overall remainder electricity.11 To date, prioritisation distances travelled have increased.7 of movement at the lowest cost has led to the proliferation of transport powered by fossil- derived fuels, but this could change in future to take into account other important factors – environmental in particular. The additional and urgent priority to reduce net GHG emissions of transport highlights the need to reduce the use of fossil-derived fuels and embrace the range of technologies available to meet the scale of demand currently supplied by crude oil derived energy. 14
There are three important facets to transport energy provision. In the UK, all motored The downstream sector transport – whether electric or combustion is experienced in the – is dependent on both energy transfer and energy conversion, with a third dependency manufacture and provision for most transport operations (except where in-operation energy transfer can occur, such of all energy vectors as rail) being the requirement for on-board and has demonstrable energy storage. The primary energy vectors available for expertise in the accounting transport include liquid fuels, carbon-based gaseous fuels, hydrogen, and electricity. of their net well-to-tank Bringing together the current needs (energy transfer, conversion, and storage) together and greenhouse gas with the drivers (cost and sustainability), emissions. there are five considerations that can shape our thinking about future transport energy The downstream sector is experienced in provision. These considerations are simply the manufacture and provision of all energy captured for the main energy vectors on the vectors and has demonstrable expertise next page. in the accounting of their net WTT GHG Vitally, all energy vectors can reach very emissions. Furthermore, the sector plays low or Net-Zero carbon emissions. It is also a crucial role in enabling the storage of noteworthy that no energy vector works for electricity, with the UK being the largest every consideration highlighted in the table, producer of high-grade graphite coke for and when considering current capacity anodes in lithium-ion batteries in Europe.16 there are some limitations in the lowest Similarly, new roles may emerge, as the GHG emission options such as hydrogen, wider energy systems transform, with the highlighting the need for all technologies. The potential for use of existing downstream oil International Energy Agency (IEA) recently infrastructure for storage and distribution of reinforced this point stating that “a broad renewably-sourced products like hydrogen or range of different technologies working synthetic fuels. Surplus renewable electricity across all sectors of the economy” would be could also be converted via electrolysis of required to have a chance of achieving Net- water into easier to store products, stored Zero GHG emissions.15 and distributed through these facilities.17 15
The Future of Mobility in the UK | March 2021 Table 1: = high potential or viability Summary of relative qualitative decarbonised = possible potential or viability transport energy vector considerations = low potential or viability Liquid Fuels Gaseous Fuels Hydrogen Electricity Intermediate for Intermediate Currently high Intermediate to Manufacture low Well-to-Tank for low WTT for low WTT low for low WTT Cost (WTT) emissions emissions emissions emissions Up to 90% Up to 90% WTT GHG reduction for bio- reduction for bio- Up to 100% Up to 100% Emissions derived12, up to derived12, up to reduction if reduction if Reduction 100% reduction if 100% reduction if renewable energy renewable energy Potential renewable energy renewable energy derived derived derived derived Minimal at grid Tankers and Further energy level other than Transfer/ pipelines Energy required required for intermittency Movement available, minimal for compression, compression management, Complexity input energy smaller unit size and volatility some low voltage required considerations network challenges Infrastructure Minimal Infrastructure Transfer / development infrastructure Infrastructure and development Infrastructure needed for available standards in place needed for scale, Readiness transport, but under standards in place standards in place development On-Board Limited by High by volume Storage Energy High by mass High by mass chemical battery and mass Density energy density Finite biomass, Finite biomass, High renewable Primary Energy Unlimited - limited highest renewable highest renewable energy input Input and only by generator energy input for energy input for for electrolysis- Availability capacity e-fuels e-fuels derived Current Use 3.2% of energy 0.13% of energy 0% of energy 0.83% of energy in Transport used in transport used in transport used in transport used in transport (2019)13,14 16
Relative shares of fuels used in UK transport, 2019 0.57% 0.26% 95.84% 4.16% 0.13% 3.20% 0.00% Petroleu m Liquid Biofuels Electricity Non-Renewable Electricity Renewable Gaseous Biofuels Renewable Hydrogen Source: Eurostat13, BEIS14 3.3 Other Environmental and 3.3.1 Air Quality Socioeconomic Impacts Vehicles have faced increasingly stringent Decarbonisation of transport will be vital in tailpipe regulations to address air quality with reaching the UK’s Net-Zero target, however, excess levels of air pollutants in urban areas transport has other environmental impacts. due to be tackled via the implementation These are outlined here as they will also of emissions zones. Sulphur oxide (SOX ) shape the future of mobility in the UK, but emissions have been reduced to near zero are not discussed in detail in this document. for UK road transport, with sulphur having been removed from road fuels, and 2020 17
The Future of Mobility in the UK | March 2021 saw the mandated global reduction of implement powertrain-specific restrictions – sulphur emissions for ships – although strict notably Bristol and Oxford.25,26 limits have been in place for UK waters for As the UK vehicle market is deeply some time. Nitrogen Oxide (NOX ) emissions, intertwined with that of mainland Europe, while reduced from transport by 47% since it is expected that UK vehicle emissions 2000, will remain of concern while pre-Euro standards moving forward will remain in 6 and Euro VI vehicles remain a significant line with those maintained by the European proportion of the vehicle fleet.18 Particulate Union (EU). Matter (PM) emissions have decreased by over 40% over the last two decades but will not be easily reduced further with a change to electric vehicles, as road transport PM emissions are not only from the tailpipe (where even the latest diesel ICEs have very low emissions)19 but also from road, tyre, and brake wear. DEFRA have published a Clean Air Zone (CAZ) framework20 offering a template approach for local authorities to adopt. The idea is that there will be similar ICE-vehicle emissions standards in the strictest emissions zone class (D) across cities, although some cities have already implemented ultra-low emissions zones.21 The first in the UK applicable to passenger cars was the London Ultra Low Emissions Zone (ULEZ),22 and it is planned that Birmingham and Bath will implement Class D and Class C CAZs respectively in 2021.23,24 Some local authorities have opted to deviate from the DEFRA CAZ framework and plan to 18
3.3.2 Raw Material Demand 3.3.3 UK Supply Resilience Increased powertrain technology diversity The shift to energy vectors based on in the UK – particularly the proliferation renewable electricity and biomass will evolve of battery electric and fuel cell electric the current UK energy supply dynamic – powertrains – will require growth in raw resulting in new benefits and risks. Increase material extraction. For example, the in biomass demand will necessitate an increased manufacture of battery electric improved domestic supply chain and is likely vehicles (BEVs) has implications for demand to also result in a reduction in the import of multiple metal elements, and the proton of crude oil. Sustainable biomass with low exchange membrane (PEM) of hydrogen fuel indirect land use change (ILUC) emissions cells requires platinum. This can have an is a finite resource, with the likelihood impact on product lifecycle considerations that other countries will also be adopting such as toxicity, water use,27 and social risks, competing transport decarbonisation where growing awareness will likely demand policies. Encouragingly, an increase in further supply chain transparency.28 domestically generated renewable energy Raw material availability, as well as could afford the UK some energy resilience extraction considerations, will play a part in benefits for EVs, as well as production of shaping the future of UK transport. In 2019, green hydrogen and e-fuels. many leading scientists in the UK sent a However, the increased demand for vehicles letter to the Committee on Climate Change utilising these energy vectors is likely to highlighting that to achieve an entirely BEV result in a reduction in product supply car and van vehicle parc in the UK – even resilience. There is currently limited battery with the currently most resource-frugal manufacturing capacity in the UK, with NMC 811 batteries – would require double demand due to be met predominantly by the current global production of cobalt, imports at least into the 2020s. Therefore, the and three quarters of the world’s lithium UK’s future of mobility may be underpinned production.29 Moving forward, the UK has by a shift in energy dependency to product the opportunity to become a world leader supply dependency that may ultimately shift on the sustainable sourcing requirements price volatility – and resultant costs on the for vehicles and energy vectors as well as end-user – from the in-use phase to the ensuring that recycling of materials reduces upfront phase of vehicle ownership. the long-term need for virgin materials. 19
The Future of Mobility in the UK | March 2021 4 The Energy Vector Transition 20
A systems-based approach is crucial to reducing emissions, especially when considering emissions must be Net-Zero across the whole economy, with knock-on effects in one policy area having the potential to cause problems in others. The concept of product lifecycle GHG emissions is the next frontier in emissions accounting. To truly account for the net GHG emissions impact of transport (and indeed any product), one must consider the GHG emissions impact over the full lifecycle – ‘from cradle-to-grave’. Offering a quality end-user experience can help accelerate the transition to renewable based fuels and energy vectors. Other GHG reducing initiatives such as offsetting and nature-based solutions or alternative fuel models can play an important role as part of the transition to Net-Zero in transport. 21
The Future of Mobility in the UK | March 2021 4. The Energy Vector Transition dependencies and knock-on effects in other parts of the economy to reach Net-Zero. 4.1 Systems Approach to Decarbonisation The DfT’s Science Advisory Council (SAC) highlighted in their 2020 position – 4.2 Product Lifecycle GHG Emissions regarding transport research and innovation requirements to support the decarbonisation 4.2.1 Constituent Analyses of transport – that the challenge of In-use emissions are only part of the GHG decarbonisation must be viewed through emissions footprint of transport – to truly the lens of energy vectors and the net GHG account for the net GHG emissions impact emissions impact of these energy vectors.30 of transport (and indeed any product), one This principle is also highlighted by Energy must consider the GHG emissions impact Systems Catapult (ESC) who highlight in over the full lifecycle – ‘from cradle-to- their ‘Innovating to Net Zero’ report31 that a grave’ – in order to make effective decisions whole systems approach to energy uses and about where and how emissions can be vectors must be adopted to understand and most efficiently and effectively reduced. The address the Net-Zero challenge. constituent analyses of a cradle-to-grave The importance of a systems approach to lifecycle analysis (LCA) are: transport decarbonisation is also recognised internationally. For example, The US National • Cradle-to-gate (manufacturing including Renewable Energy Laboratory have recently raw material extraction) emissions published their vision for decarbonising • In-use (tailpipe and maintenance) transport highlighting the importance emissions of considering interdependencies in the • Energy vector well-to-tank emissions transport and buildings energy systems.32 • End of life (re-purposing or disposal) The analysis also highlights the importance of emissions assessing energy vector suitability based on 4.2.2 Existing Approaches and Studies duty cycle, reporting conclusions consistent Each constituent analysis identified in 4.2.1 with those of UKPIA’s in section 4.3. is well-understood in existing frameworks, Whilst a systems approach may not with: perfectly align with existing regulations that focus mainly on in-use or well-to-tank (WTT) • Cradle-to-gate emissions analysis emissions, it will be important to deliver in widespread use by many Original net GHG emissions reductions across the Equipment Manufacturers (OEMs) for a whole economy. Thinking about the whole number of years;33 lifecycle emissions of both a vehicle and • In-use tailpipe CO2 emissions regulated in the energy it uses will enable a system wide the UK since 2015,34 decarbonisation of transport while flagging 22
Cradle-to-Grave Well-to-Wheel (WTW) Embedded Emissions Energy Vector Production Cradle-to-Gate The environmental impact of Well-to-Tank (WTT) producing the transport energy vector(s) from the primary energy source to the point of distribution Use Vehicle Production The environmental impact of End-of-Life driving/vehicle use The environmental impact of The environmental impact at the vehicle production including raw & end of product life including the re- material extraction, processing, The environmental impact of use of components, recycling parts manufacture, logistics, and servicing and maintenance materials, energy recovery, and assembly disposal Figure 2: Schematic of cradle-to-grave lifecycle analysis and constituent analyses • Well-to-tank GHG emissions of fuels an transport,38-41 with studies also conducted essential consideration for fuel suppliers on bunker fuel WTW GHG emissions38 of greater than 450,000 l/year under the and sustainable aviation fuel (SAF) GHG UK’s renewable fuels regulations,35,36; emissions,42 highlighting that this is an area of • End of life of vehicles (ELVs) subject to increasing focus for transport policymakers minimum reuse and recovery targets for all modes. Given the importance of since 200637 (although associated GHG such an approach in meeting the target of emissions are not accounted for in the Net-Zero GHG emissions by 2050, and the regulations). complexity in combining partial lifecycle analyses, a move to frameworks that The challenge to resolve in the short-term is consider transport lifecycle GHG emissions to combine existing lifecycle GHG emissions is gaining increasing support amongst assessments and assigning pragmatic and industries that view a holistic approach as consistent boundary conditions. essential for the cost-effective, technology Extensive studies have been conducted neutral decarbonisation of products.43-45 on the lifecycle GHG emissions of road 23
The Future of Mobility in the UK | March 2021 Finding 1: Considering full cradle to grave product lifecycle GHG emissions and regulation for primary transport modes is likely to contribute to the most efficient delivery of A move to frameworks Net-Zero that consider transport 4.2.3 Lifecycle GHG Emissions by lifecycle GHG emissions is Powertrain and Energy Vector gaining increasing support Whilst there is a degree of variation in lifecycle amongst industries that studies of passenger cars – predominantly due to variations in boundary conditions – view a holistic approach the extent and refinement of studies has resulted in conclusions coalescing around is essential for the cost- several key themes: effective, technology • The cradle-to-gate GHG emissions of BEVs neutral decarbonisation are greater than for ICE and hybrid vehicles (a range of 1.3-2x higher)46, resulting in an of products ‘emissions debt’ at the point of sale. • With the UK grid, which has significant renewable generation, and a road fleet that is principally powered by fossil-derived fuels at present, the ‘emissions debt’ is surpassed under common ownership mileages (
Figure 3: Lifecycle CO2 emissions of mid-size vehicles propelled by liquid fuel, battery-electric, and fuel cell-electric powertrains.48 These conclusions can be used to identify intensity, reduced logistics and, therefore, significant areas enabling GHG emissions GHG emissions, although domestic supply reduction – for example, the importance of routes may not always be the most carbon lowering the cradle-to-gate emissions of efficient. Nonetheless, investment from vehicle manufacture. Companies are taking OEMs in growing UK manufacture needs to the lead, for example with Volkswagen’s be attracted or such benefits risk remaining new ID.3, where VW claim carbon neutrality ‘on-paper’. In 2019, the UK manufactured for several aspects of the vehicle lifecycle 1.38 million vehicles of which 1.056 million including the use of ‘green energy’ in the were exported, so while the UK is the fifth battery manufacture and vehicle assembly.49 largest car manufacturer in Europe, carbon Another conclusion is of the importance of emissions would be lower if more of the domestic manufacture of vehicles, which vehicles produced stayed in the UK market.50 offers demonstrable benefits in terms of grid 25
The Future of Mobility in the UK | March 2021 4.3.1 Electricity Finding2:2: Placing the downstream and Finding For light duty road vehicles, consumers automotive Placing thesectors at the forefront downstream of COVID and automotive are now offered a choice of powertrain recovery and long-term UK trade strategies sectors at the forefront of COVID recovery technologies, as EVs gain far greater market can grow and domestic long-term UKsupply tradechains early while strategies can share. Such choice is possible not only decarbonising grow domesticlong-term. supply chains early while due to the vehicle availability for purchase, decarbonising long-term. but also the availability of battery charging infrastructure. The downstream sector is at the forefront of charging provision, as well 4.3 Transport Fuels: from Fossil-derived as battery material manufacture, with UKPIA to Renewable members offering the largest public EV The energy production (well-to-tank) and use charger networks in the UK (also powered by (tank to wheel) phases of GHG emissions certified renewable energy).52,53 The sector’s can be combined to account for the well- 8,390 retail forecourts54 - which together to-wheel (WTW) emissions of a vehicle. with motorway service stations in 2020 had The previous sections have discussed the 1,066 available EV charging devices3 - will current and potential GHG emissions of continue to be the vehicle re-energising various energy vectors, however, thus far hubs for the consumer with new offers such have not explored a critical component: as EV charging (see 5.5). availability to the end-user. This section Across all transport modes, a shift to considers the future development and likely electrification may be limited by a number of experience of nation-wide provision for the challenges: primary energy vectors with conclusions outlined in this section consistent with the 1. Suitable infrastructure deployment. roadmaps highlighted in the latest Advanced 2. Battery energy storage density. Propulsion Centre (APC) Transport Energy 3. Availability of required materials and Network report.51 complexities involved in recycling (as considered in 2.3.2.) Infrastructure deployment is predominantly an economic and practical challenge. The adoption of EVs has in part been slowed by consumer concerns over charger availability, reliability, payment convenience and upfront cost.55 However, as the portion of EVs in the UK vehicle parc grows, confidence in investing in EV charger infrastructure will increase. 26
The UK government has already made important steps to address some of these Finding 3: concerns, such as mandating that new Reducing or removing the regulatory ‘rapid+’ chargers must offer a pay as you burdens for Distribution Network Operators go option for payment, and financially (DNOs) can enable local networks to be supporting EV charger installation.56,57 upgraded and support the installation of However, significant strides must still be substations for EV charging e.g. allowing made in expanding the EV charger network, DNOs to invest ahead of need with regards and ensuring similar levels of service and to EV charging infrastructure. reliability to the consumer experience of liquid fuel dispensing, to support the adoption of this energy vector. Finding 4: Publication of thorough, dedicated guidance for the safe installation of EV chargers at dedicated sites or existing retail forecourts may reduce local planning consent issues. Figure 4: Transport modes suitable for battery (and OHC) electrification based on range and duty cycle Highly viable HEAVY LONG RANGE Possibly viable DUTY (see notes) Low viability LIGHT DUTY Notes 1. Depending on Infrastructure A RAIL ROAD AIR SEA RAIL ROAD 2. With in-journey charging such as overhead cable Battery HEAVY 3. Energy vector SHORT RANGE DUTY suitability depends electrification on route / distance 4. Hybrid fuel-battery approach effective LIGHT DUTY 5. For routes that cannot be electrified 6. For existing ICE fleet 27
The Future of Mobility in the UK | March 2021 Even the most optimistic energy density predictions for batteries indicate future Finding 5: energy content an order of magnitude It is important that the finite pool of battery below liquid fuels – including accounting materials and batteries themselves are for ICE’s lower conversion efficiency.58 This utilised in the most appropriate transport will present particular challenges for long- modes – short range and light duty – and range, heavy duty transport unless there in a sustainable framework where battery is energy transfer during the journey such lifecycle planning pays more attention as via overhead catenary (OHC). Electric to responsible sourcing and end-of-life vehicles of the future could be split into (at concepts than is currently the case.62 least) two categories of on-board chemical battery storage for shorter range, light duty applications and OHC supply for In terms of supply, increased electricity fixed route applications (such as trains and required to meet increased demand for guided busways where the infrastructure is vehicle charging must continue to be practically implementable). renewable (in addition to that required It should also be noted that the rapid to further decarbonise existing supply), electrification of UK and European vehicles ensuring low (and eventually zero) WTW will stretch the battery supply chain – even GHG emissions for this energy vector. with its rapid rate of growth – with lithium This renewable energy will also need to be demand currently forecast to outstrip all balanced at the local network level, with projects that are operational, planned, smart charging utilised to both support the unfinanced and recycling initiatives.59 Similar consumer’s residential vehicle re-energising concerns could also emerge for other battery needs whilst smoothing electricity demand. component materials like cobalt or nickel, although new battery chemistry is being Finding 6: developed which may change the resource Supporting the market-led introduction demand to more abundant materials.60 of smart-charging could boost cost- Recycling of battery materials also has effective and innovative approaches for significant potential to contribute alongside the consumer in the EV space. or ultimately instead of virgin materials – something that is already being considered by the Faraday Institution.61 28
4.3.2 Hydrogen The last section explored the challenges infrastructure additional to that of electricity for electrification highlighting why other and liquid fuels. Therefore, on the road, technologies are likely to be needed hydrogen is most suitable Highly viable for long range alongside massHEAVYelectrification of transport. and/or heavier duty applications where there LONG RANGE Possibly viable DUTY Hydrogen is one such technology and is a captive fleet returning to depots (such as (see notes) offers greater energy density than batteries suburban buses) Low or re-energising viability hubs may and more rapidLIGHTenergy transfer whilst still support long-range travel (such as heavy Notes producing zero TTW GHG emissions.63 DUTY goods vehicles). Light duty vehicles with 1. Depending on Hydrogen must be produced either from high levels of utilisation Infrastructuremay also be better renewable electricity or viaAIR captured SEA CO RAIL 2 to suited ROAD to hydrogen-based 2. With in-journey propulsion owing charging such as have low WTT GHG emissions (necessitating to the shorter re-energising overhead cable periods offered Battery additional energyHEAVY input versus direct (with Green Tomato 3. EnergyCars’ vector use of the Toyota SHORT RANGE DUTY electricity electrification transfer), and requires dedicated Mirai an early example). suitability depends 64 on route / distance 4. Hybrid fuel-battery approach effective LIGHT DUTY 5. For routes that cannot be electrified Figure 5: Transport modes suitable for 6. For existing ICE fleet hydrogen-based propulsion based on range and duty cycle HEAVY LONG RANGE DUTY LIGHT DUTY SEA RAIL ROAD AIR SEA RAIL ROAD HEAVY Hydrogen SHORT RANGE DUTY LIGHT DUTY 29
The Future of Mobility in the UK | March 2021 For now, a significant drawback of difficult-to-decarbonise maritime sector hydrogen use in road transport is the lack where larger vessels, with high utilisation of infrastructure. The European Automobile and minimal stationary or manoeuvring time, Manufacturers Association (ACEA) have will be attracted to energy dense, quickly identified that at least 500 hydrogen refuelling energised hydrogen powertrains. However, stations are required across Europe by 2030 for the scale required the hydrogen may be to satisfy hydrogen heavy goods vehicle supplied via an intermediate vector such as (HGV) energy demands.65 Recognising ammonia. The current limited availability of that whilst electric drive (motors) should green and blue hydrogen means this must be widely adopted for their conversion currently be considered a medium-to- efficiency, multiple complementary input long-term option as addressed in Chapter energy vectors can be pursued to power 8. However, allowing for development of them – including hydrogen. hydrogen from all sources (at least low carbon intensity production technologies) should lead to earlier deployment at scale of Finding 7: hydrogen as an option. Providing public funding support for a Finally, considering air travel, Airbus have hydrogen HGV commercial demonstration confirmed their ambition to develop the project in the UK could help overcome early world’s first hydrogen propelled commercial concerns over a lack of infrastructure. aircraft by 2035.67 The same aforementioned energy density, transfer, and zero WTT GHG emissions potential are drivers behind For non-road transport, hydrogen is attractive Airbus’ pursuit of the concept. It is likely for rail that is challenging to electrify via OHC, that hydrogen use in aircraft in the coming with the UK first trial of a hydrogen fuel cell decades will be limited to short-range flights train taking place in the Midlands.66 where battery electrification is not viable. Arguably, the largest off-road future A summary of the suitability of hydrogen for application for hydrogen lies with the transport modes can be found in Figure 5. 30
4.3.3 Low Carbon Fuels The potential for both electrification and Over time, low carbon fuels can be replaced hydrogen shows that – with increasing by a wide range of climate neutral fuels levels of renewable electricity production (and fuelling models – see 4.4.2) to power – widespread use HEAVY of zero carbon energy UK transport with Net-Zero emissions. HEAVY LONG RANGE LONG RANGE DUTY DUTY vectors can become a reality for UK transport Their deployment can continue as needed in the future. However, the climate challenge depending on climate neutrality, other demands immediateLIGHT action, and low environmental factors and supply – LIGHT for DUTY carbon fuels offer the most readily available example in the case of limited feedstocks DUTY displacement of the currently predominant, they can be diverted to aviation and fossil-derived, carbon-based AIR fuels/chemical SEA RAIL marine ROAD as light duty vehicles are AIR energy vector. Low carbon fuels for transport electrified. It is for these reasons that one in the UK are defined HEAVY by the sustainability of the recommendations by the IMechE Battery HEAVY SHORT RANGE SHORT RANGE DUTY criteria set-out in the Renewable Transport in its ‘Accelerating Road electrification Transport DUTY Fuel Obligations Order 2007 (as amended).35 Decarbonisation’ report was for “substantial LIGHT investment (similar to that provided LIGHT for DUTY DUTY Figure 6: Transport modes most suitable for low carbon fuel propulsion based on range and duty cycle (assuming limitations to renewable fuel feedstocks/primary energy) HEAVY LONG RANGE DUTY LIGHT DUTY AIR SEA RAIL ROAD Low-carbon HEAVY Hydrogen SHORT RANGE DUTY fuels LIGHT DUTY 31
The Future of Mobility in the UK | March 2021 battery electric vehicles and charging make use of low carbon liquid fuel options, infrastructure) in sustainable and low-carbon the economic incentive to shift away from fuel development and associated internal fossil-derived fuels to towards renewable combustion engine technology.”44 options is currently limited. A product lifecycle E-fuels may also play a role in the emissions based regulatory framework, decarbonisation of high energy density embedding WTT GHG emissions into UK demand sectors such as aviation. Losses fuels policies can accelerate the deployment incurred via the energy input phase may of renewable fuels in the UK by making low- be offset by the efficiencies gained in carbon options preferable to more carbon infrastructure and fuel quality. E-fuels intensive equivalents. In Germany, a WTT manufactured in markets with greater GHG reduction target for fuels with a carbon renewable energy resources – such as solar cost for under-delivery of the target has in North Africa – could be readily imported proven to be an effective means of driving using existing UK import infrastructure.68 WTT GHG emissions reductions.69 As explored in depth in the TTI Report, The downstream sector has demonstrated multiple options exist to produce low carbon its support for increased deployment of fuels; from hydrogenated vegetable oil (HVO), low carbon fuels in the UK in the immediate to lignocellulosic residues as feedstocks, term by fully supporting the mandated to the production of e-fuels for hard-to- introduction of E10 petrol and increasing the decarbonise sectors such as aviation. buy-out price of the Renewable Transport While vehicle and supply infrastructure could Fuel Obligation (RTFO). A product lifecycle Finding 8: emissions based regulatory Accelerating the transition of liquid framework, embedding fuels from fossil-derived to biomass- or renewable energy-derived is a no- well-to-tank GHG emissions regret option for the UK as almost into UK fuels policies can all transport modes could be at least incrementally decarbonised in the short accelerate the deployment term with such a change (aviation may be challenged due to strict fuel quality of renewable fuels in the UK and supply requirements). 32
Longer-term, it is likely that low carbon 4.4 Other GHG Reducing Initiatives fuels will then meet demand for applications In order to meet the challenge of Net-Zero technically or economically unviable via by 2050, significant GHG reductions may electricity or hydrogen. Figure 6 summarises also need to be made via other routes if these possible longer-term low carbon fuel total carbon-neutrality is not possible with deployment options in the coming decades: the options explored so far. The many technologies available to reduce the carbon intensity of fuels have been explored in detail in other UKPIA reports (Future Vision, 2019, and TTI Report, 2020) but two other Finding 9: considerations that are relevant to the The UK renewable transport fuel provision of transport energy vectors are regulations review in 2021 offers the outlined in this section - offsetting and opportunity to consolidate and develop nature-based solutions and alternative a new UK GHG emissions reduction fuelling models. target. Opportunities to incentivise new technologies should include support 4.4.1 Offsetting and Nature Based for blue or green hydrogen used in manufacture of fuels as is already allowed Solutions in some other countries. Offsetting schemes are growing in popularity with new consumer offerings being developed. In recent years, downstream retailers such as bp and Shell have integrated carbon offsetting optionality into their fleet Finding 10: fuel card and consumer loyalty schemes,70,71 Fuel duty offers a primary government enabling drivers to support initiatives lever to influence consumer behaviour offsetting the CO2 emissions produced from towards low-carbon liquid fuels if scaled their fuel use. according to a fuel’s carbon intensity, There are also products seeking to offer (captive fleets seeking to adopt higher offsetting directly to the consumer, with blend biofuels may be an early adopter). apps such as VYVE providing the means for consumers to input their journeys by different transport types and offset their transport GHG emissions accordingly.72 Offsetting schemes are not limited to road transport. In order to reduce its net GHG emissions impact, the aviation sector has established the Carbon Offsetting and Reduction Scheme for International Aviation 33
The Future of Mobility in the UK | March 2021 (CORSIA). The scheme is currently voluntary, vehicles, and could also be developed for with the pilot phase due to commence in 2021 adoption in passenger cars with some form and with a view to establishing a pan-industry of upfront fuel purchase providing suitable approach via the International Civil Aviation investment certainty. Organisation (ICAO).73 Similarly, it may be that offsetting of emissions can be achieved through use of technical solutions such as Finding 11: Direct Air Capture and Storage (DACCS) Developing a viable framework for low and other carbon capture techniques that carbon energy vector investment contracts permanently sequester carbon (industrial linked to existing emissions obligations applications have been explored further in could promote early adoption of low-carbon UKPIA’s Future Vision report).74 solutions in a technology neutral way. 4.4.2 Alternative Fuelling Models A current limitation in terms of low carbon fuels development has been finding sufficient scale to improve their commercial viability. A potential solution to this is the implementation of an investment framework operating in DT PDEHMHMF HMCTRSPW OPNONRDR : ONSDMSH:I O:SGU:W SN BIHL:SD MDTSP:IHSW AW 1/2/ parallel with an emissions regulation (e.g. tailpipe emissions standard) that can enable suitable levels of investment for low carbon energy scale-up. In turn, the investor (likely a vehicle manufacturer or fleet operator) may then claim GHG emissions savings towards their GHG obligation through fulfilment of the ‘contract’ – an approach that has been explored in depth by Cerulogy.75 The wider policy frameworks that could incentivise investment in low carbon solutions are identified in the FuelsEurope “Clean Fuels For All” report.75,76 Such an approach does not require restructuring of existing GHG regulatory 1mc FdmdqYshnm ahnetdkr) frameworks, but would complement them, :cuYmbdc ahnetdkr rtbg Yr YkfYd() UYrsd) PnkYq) Uhmc and provide much needed upfront fiscal support for more difficult to decarbonise transport modes such as heavy goods 34
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The Future of Mobility in the UK | March 2021 5 Mobility Paradigm Shift 36
In addition to energy vectors transitioning to renewable sources (see Chapter 4), consumers’ lifestyles and their associated approach to transport must also transform to meet Net-Zero. The effect of COVID-19 has meant the UK population has changed its transport patterns significantly but the long-term continuation of these changes is uncertain. Hyper-proximity of townsites and the development of mobility-as-a-service, such as ride-sharing companies can offer efficiencies in transport demand. Technological advances such as block- chain, autonomous vehicles, consumer convenience technology and micro-mobility like electric scooters will all be critical to offering a more sustainable way of travelling. 37
The Future of Mobility in the UK | March 2021 5. Mobility Paradigm Shift it is unclear whether demand will recover to pre-COVID levels as remote working patterns are embedded into company operations.77 The UK faces a significant challenge in Social distancing requirements will further displacing and reducing its transport energy reduce demand on shared transport such demand with low and eventually Net-Zero as public transport and pooled/ride-sharing carbon energy vectors. Technologies explored schemes. As these requirements are relaxed in Chapter 3 will go a considerable way to in the years ahead there may be some displacing current emissions but reducing return in demand, however it is unlikely to overall demand offers an efficient means return to pre-COVID levels as consumers to reduce GHGs too. Minimising transport increasingly adopt remote working and requirements (such as reduced commuting), socially-distanced mobility offerings such integrating transport systems (such as multi- as private car ownership or mobility-as-a- modal routing), and aggregating journeys service (MaaS – see 5.3).78 (such as by pooling and consolidation centres) While many societal changes seen during will all play their part in ensuring UK transport COVID might improve transport sector is decarbonised as rapidly as possible whilst efficiency and decarbonisation (WFH, maintaining options for the consumer and MaaS, micromobility), the potential shift to economic growth. use of private cars could create a number of In their Innovating to Net-Zero report, the challenges. After significant improvements ESC highlight that in addition to energy in air quality following the introduction of vectors transitioning to renewable sources, movement restrictions, NO2 levels in London consumers’ lifestyles and their associated appear to be returning back to pre-COVID approach to transport must also transform levels.79 This supports the shift to private to meet Net-Zero.31 This chapter will car use given overall passenger km travelled explore some non-energy variables that will are still reduced compared to pre-COVID.77 influence consumer behaviour and provide Other less desirable impacts are highlighted more efficient energy vector use. in Table 2. Micromobility, a planned consideration for 5.1 COVID-19 Movement the government in 2020, has been given Restrictions priority by COVID-19 with the government National movement restrictions publishing and concluding an e-scooter implemented to prevent the spread rental consultation and Middlesbrough of COVID-19 have forced the UK implementing a trial to enable urban mobility population into practising new means of whilst discouraging consumers returning working and adopting new demand patterns to passenger car use.80,81 2020 has also on mobility. Demand for commuting into seen expansion of cycle lanes and a cycle urban centres – and therefore public repair scheme to encourage consumers to transport – has significantly decreased and transition to cycling.82 38
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