The market for trucking
Looking north to Canada for a glimpse of a future with carbon taxes, the trucking industry is about to be hit by $3 billion in carbon taxes per year by 2030
Problem We're Looking to Solve:
The heavy-duty vehicle (HDV) sector is experiencing a rapid increase in tailpipe CO2 emissions, with trucks responsible for more than 80% of this growth since 2000. This surge in emissions underscores the urgent need to mitigate climate change and align with the Net Zero Scenario (NZE) milestones. Efforts must focus on enhancing vehicle efficiency standards, improving logistics and operational efficiency, and transitioning to electric and hydrogen fuel-cell electric HDVs to curb emissions and meet sustainability targets.
Financial Impact:
Despite comprising less than 8% of vehicles on the road, heavy-duty vehicles contribute over 35% of direct CO2 emissions from road transport. The financial ramifications of rising emissions are significant, with costs associated with environmental damage, health impacts, and climate change mitigation measures. Looking north to Canada, the Canadian Trucking Alliance (CTA) estimates the trucking industry will pay $ 1.2 billion in carbon charges in 2023, with that amount rising every year to about $ 3 billion by 2030. Without decisive action, emissions are projected to continue rising, exacerbating these financial burdens. Transitioning to low-emission vehicles, including electric and hydrogen fuel-cell electric HDVs, is imperative to meet the NZE Scenario targets and mitigate financial risks associated with climate change.
How It Can Be Solved:
To address the rising CO2 emissions from heavy-duty vehicles, a comprehensive approach is necessary. This includes implementing stronger fuel economy standards, accelerating the adoption of zero-emission vehicle (ZEV) mandates, and investing in infrastructure to support electrification and hydrogen fueling. Governments, manufacturers, and other stakeholders must collaborate closely to develop and implement effective policies and initiatives. By aligning regulatory frameworks, incentivizing innovation, and fostering public-private partnerships, the sector can transition to a more sustainable model while mitigating financial risks and environmental impact.
How Celadyne can Solve it:
So far, Mercedes, Daimler, Cummins, Toyota, Hyundai, Bosch (with Nikola), Kenworth, Freightliner, Honda, BMW, and Volvo have all publicly announced hydrogen-powered heavy trucks to be launched commercially in this decade. However, long term market penetration for this technology will require cost parity to traditional diesel solutions. Celadyne addresses both CAPEX and OPEX for trucking by making fuel cells last as long as diesel engines in total lifetime while reducing the cost of green hydrogen fuel. To keep up with the roll-out of green hydrogen trucking, Celadyne’s solution is also built upon an existing materials ecosystem, enabling quick scale-up and backward compatibility with existing stack architecture, thus minimizing integration costs.
With this two-pronged solution, Celadyne plays a pivotal role in accelerating the transition to low-emission, heavy-duty vehicles, aligning with global sustainability goals, and mitigating financial risks associated with climate change.
