ELECTRIFICATION OF TRUCKS FOR CEMENT SECTOR IN INDIA

Application: Transportation of cement bags from manufacturing plant to distribution hub.
Route: 45 km one way.
Number of EV Trucks Deployed: 2.
Payload: 258 kWh.
Battery Capacity: Approximately 0.6 km/kWh.
Efficiency: 6,000+ km.
Approximate Monthly Travel per EV Truck: 300 km.

Benefits/Pros Experienced:

• Operational Cost Savings: Savings of INR 20 per km.
• Improved Driver Wellbeing: Benefits from automatic transmission and mandatory charging breaks.
• Higher Depreciation Value: 40% for EV trucks compared to 30% for ICE trucks.
• Environmental Benefits: Significant reduction in greenhouse gas emissions and local pollutants.

Challenges Faced:

• Finance Cost Recovery: Requires an average running distance of 8,000 to 10,000 km per EV truck per month.
• Charging Infrastructure: The necessity for robust charging infrastructure to support long trips and high mileage.
• Reduced Payload: Compromised due to the large size and weight of the battery.
• Maintenance: There is a need for skilled maintenance personnel familiar with EV technology.

Application: Transportation of clinker from a manufacturing plant (integrated unit) to grinding unit.
Route: 250+ km one way.
Number of EV Trucks Deployed: 5.
Payload: 40 metric tons.
Approximate Monthly Travel per EV Truck: 6,500 km.

Benefits/Pros Experienced:

• Lower Operation Expense: Significant reduction in operational costs compared to ICE trucks.
• Reduced CO2 Emissions: Substantial decrease in carbon emissions, contributing to environmental sustainability.
• Driver Well-Being: Improved due to less noise, vibrations, and automatic transmission features.

Challenges Faced:

• Delayed Vehicle Registration: Complications and delays in the registration process of new electric vehicles.
• Lack of Charging Infrastructure: Insufficient charging facilities along the route hinder long-distance operations.
• Longer Payback Period & Unpredictable Secondary Market: Financial returns take longer than anticipated, and the resale market for used EVs is not yet reliable.
• Fixed Route Limitations: The necessity to operate within predetermined routes due to charging station locations.

Enablers for the Initiative:

• Charging Infrastructure: Installation of charging stations at the plant and along the route.
• Adequate Remuneration for Drivers: Ensuring driver satisfaction and retention through competitive pay.
• Provision of Green Channel or Improved Turnaround Time (TAT): Streamlining operations to reduce wait times and enhance efficiency.
• Monitoring of Trips & TAT: Implementation of tracking systems to optimize logistics and turnaround times.

Application: Transportation of slag from the source plant to a cement manufacturing unit.
Route:40 km one way.
Number of EV Trucks Deployed: 22.
Payload: 35-40 metric tons.
Approximate Monthly Travel per EV Truck: 5,500 km.

Benefits/Pros Experienced:

• Lowest Operating Cost: A marked reduction in operating expenses compared to traditional ICE trucks.
• Lower Emissions: Significant decrease in environmental pollutants.
• High Powertrain Efficiency: The enhanced efficiency of electric powertrains contributes to better performance and fuel economy.
• Wellbeing of Drivers: Improved conditions due to quieter operations and less vibration.
• Lesser Maintenance: Reduced mechanical complexity leads to fewer maintenance requirements.

Challenges Faced:

• Limited Range & Fixed Routes: Constraints on operational flexibility due to range limitations and dependency on established charging points.
• High Maintenance Downtime & Spare Availability: Challenges in obtaining spare parts and longer downtime for maintenance.
• Additional Charging Infrastructure Costs: The financial burden of installing and maintaining additional charging stations.
• Reluctance from Service Providers: Hesitation in deploying high-value assets without assured returns.

Enablers for the Initiative:

• Long-Term Association with Service Providers: Building stable, long-term relationships with service providers to ensure reliability and service continuity.
• Battery & E-Trucks Annual Maintenance Contracts (AMC): Ensuring the longevity and performance of the fleet through comprehensive maintenance contracts.
• Dedicated Routes with Charging Infrastructure at Both Ends: Establishing dedicated routes with sufficient charging facilities to ensure efficient operations and mitigate range anxiety.

Application: Transportation of cement bags from the grinding unit to the cement depot and return loads of slag from the steel plant.
Route: 35-40 km one way.
Number of EV Trucks Deployed: 2.
Payload: 38-40 metric tons.
Approximate Monthly Travel per EV Truck: 3,500 km.

Benefits/Pros Experienced:

• Lowest Operating Cost: Significant reduction in operational expenses compared to conventional ICE trucks.
• Lower Emissions: Considerable decrease in carbon and pollutant emissions, enhancing environmental sustainability.
• Wellbeing of Drivers: Improved due to less noise, reduced vibrations, and automatic transmission features.
• Easy Maintenance Upkeep: Simplified maintenance due to fewer mechanical components in EVs.

Challenges Faced:

• Lower Number of Trips: High detention times at depots for unloading and at the steel plant for loading reduce trip frequency.
• Battery Limitations: Restrictive battery capacity limits the feasibility of two out of three potential return routes.
• Forced Short Trips: Lack of adequate owned or third-party charging infrastructure in nearby cities confines the trucks to shorter trips.

Enablers for the Initiative:

• Green Channel at Slag Source Plant: Implementation of a green channel can significantly increase the number of trips and encourage further EV deployment.
• Owned Fleet and Driver Retention Control: Owning and effectively managing the fleet enhances control over vehicle operations and helps in retaining skilled drivers.
• Charging Infrastructure at Slag Source End: Establishing dedicated charging facilities at the slag source end to support efficient turnarounds.

Application: Transportation of clinker from an integrated unit to a grinding unit.
Route: 35 km one way.
Number of EV Trucks Deployed: 5.
Payload: 40 metric tons.
Monthly Travel per EV Truck: 6,000+ km.

Benefits/Pros Experienced:

• Lower Operating Cost: A notable reduction in operational expenses compared to ICE trucks.
• Own Control Over Fleet: Enhanced operational control and flexibility due to ownership of the fleet.
• Return Loading: Efficient utilization of vehicles with return loads from the grinding unit, optimizing logistics.

Challenges Faced:

• Extended Payback Period: The payback period is approximately 4 years longer compared to ICE vehicles, due to higher initial costs.
• Secondary Market Unpredictability: Uncertainty in the resale market for electric trucks impacts long-term investment decisions.
• Short and Fixed Route: Limited route flexibility. Operational interruptions, like stock status changes and plant stoppages, significantly affect truck utilization and financial returns.

Enablers for the Initiative:

• Charging Infrastructure Installation at Both Plants: Essential to support continuous operations and minimize downtime.
• Owned Fleet and Driver Retention Control: Owning the fleet provides better management of operations and aids in retaining skilled drivers.
• Flexible Utilization of Trucks: Deploying the trucks for cement transport when clinker transportation is not required, thus maximizing vehicle usage and efficiency.