The Future of Mobility in the UK - March 2021 - UKPIA

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The Future of Mobility in the UK - March 2021 - UKPIA
The Future of Mobility
in the UK
March 2021

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The Future of Mobility in the UK - March 2021 - UKPIA
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    property of UKPIA and may not be published or distributed without prior written permission.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.

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The Future of Mobility in the UK - March 2021 - UKPIA
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
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The Future of Mobility in the UK - March 2021 - UKPIA
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.

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The Future of Mobility in the UK - March 2021 - UKPIA
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.

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The Future of Mobility in the UK - March 2021 - UKPIA
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

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The Future of Mobility in the UK - March 2021 - UKPIA
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.

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The Future of Mobility in the UK - March 2021 - UKPIA
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

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The Future of Mobility in the UK - March 2021 - UKPIA
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 - UKPIA
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

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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.

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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

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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,
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                                                              UYrsd) PnkYq) Uhmc

     and provide much needed upfront fiscal
     support for more difficult to decarbonise
     transport modes such as heavy goods

34
35
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

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