Case study
Large retailer
Key facts
Where is it?
The station
The station was designed to fit discreetly into an under-utilised space on Ocado’s Hatfield CFC site and is optimsed to refuel 80 trucks per day. During the design process extra capacity was built-in to allow Ocado to expand their fleet beyond 80.
10-year operation and maintenance agreement
“We’re future-proofing our fleet and our business. Emissions from CNG are cleaner than Euro VI standards which start to take effect with the London Low Emissions Zone from April, and will soon be followed by a further 32 Clean Air Zones.”
Environmental benefits
Ocado utilised a blend of natural gas and renewnable biomethane to achieve a significant reduction in CO2 emissions.
Stakeholder welfare
Drivers
The drivers also benefit from gas vehicles being smoother and quieter, running approximately 50% lower noise than diesel.
Local residents
With natural gas HGVs being 50% quieter than diesel HGVs Ocado has reduced its impact on the local community by creating less noise in residential areas and less noise during nighttime activities.
PPE
Ocado drivers are required to wear minimal PPE to refuel - just gloves.
Money matters
Ocado’s Fleet Services Manager has reported savings of 12 pence per kilometre against diesel.
Annual savings per truck
With a 12p/km saving and an annual mileage of 160,000km, an HGV would save £19,200 per year in fuel costs versus a diesel. Doing 220,000km, a truck could save a business over £26,000 per year in fuel costs.
Potential fleet savings
Assuming a 12p/km saving at 160,000km per year, 30 gas trucks would save a business nearly £600,000 in fuel per year. 70 trucks would save a business nearly £1,400,000 per year.
Other retailers, such as John Lewis Partnership and Waitrose, have reported savings of £75,000-£100,000 over a truck’s lifetime.
Lower fuel duty locking in savings
The government’s recent decision to fix fuel duty on gas at 50% of diesel until 2032 provided impetus for Ocado to invest in gas technology and has locked in savings against diesel for at least 13 years.