Case study
Nicholls Transport
Nicholls Transport’s LNG facility at their depot in Sittingbourne was opened to support an initial LNG truck order of ten 6x2 Iveco Stralis Natural Power units.
Since the initial deployment, Nicholl’s LNG fleet is now up to 30 vehicles, all of which are Iveco Stralis NP 6x2s.
Nicholls and Gasrec have worked together to enable other local operators to use the site to enable the growth of LNG fleets in south-east England. Commenting on the refuelling infrastructure, James Westcott, Chief Commercial Officer of Gasrec, explains: “We have installed a pumped mobile refuelling station which we use to seed new locations where we want to get LNG into an area quickly. Other companies using the site now include Lenham Storage, XPO and Tesco.
Paul Nicholls at the opening of the LNG station.
“Moving to alternative fuels has been high on our agenda – but gas is currently the only technology that’s ready for 44-tonne operation. Gasrec has been hugely proactive and gave us the confidence to switch fuels, following experiences with demonstrators organised through IVECO and Haynes Trucks.”
The station
This skid-mounted station, designed by Chart LNG, can service up to 50 LNG trucks per day. Fuel levels on the station are monitored remotely by Gasrec and fuel is delivered by Gasrec tanker when required. Remote connectivity to Gasrec Remote Operating Centre (ROC) also enables 24/7 operating support and notification of any faults or station problems.
Being skid-mounted means the station can be installed with little groundwork and without the need for mandatory planning permission.
Commenting on the refuelling infrastructure, James Westcott, Chief Commercial Officer of Gasrec, explains: “It’s ideal for an early adopter like Nicholls, being capable of supporting many gas vehicles from a single location. This is the pre-cursor to a larger and fully open-access development we are looking at for the Nicholls site.”
Location
The LNG refuelling station is the first of its kind in Kent and is perfectly situated for freight traffic bound for the continent, being less than five miles from Junction 5 of the M2.
The vehicles
IVECO designed the Stralis NP to be the most sustainable heavy truck for 44-tonne operation, standing apart from competitors for being the only three-axle tractor unit on the market to run purely on LNG. It is mounted with gas tanks on both sides of the chassis, offering Nicholls a projected range of between 610 to 640km, dependent on terrain and payload – making it perfect for vehicles operating on same-day back-to-base missions.
The new Stralis NPs are powered by IVECO’s proven 12.9 litre Cursor 13 NP engine, which delivers up to 460hp – offering the same blend of power and performance as its diesel vehicles. They also benefit from the latest generation Hi-Tronix transmission, which reduces gear shifting times by 10 per cent.
The Stralis NPs cover up to 175,000km per year when being double-shifted, and are planned to remain in service for a minimum of five years.
Contributing to the appeal of the Stralis NP are IVECO’s extended maintenance intervals of 90,000km – the longest in the industry for single-fuel gas vehicles – resulting in less time in the workshop and more time on the road. Furthermore, the absence of complex after-treatment systems associated with diesel vehicles means the Stralis NP requires no EGR, SCR, Diesel Particulate Filter (DPF) or AdBlue – adding significantly to its low-maintenance advantages.
Environmental benefits
A key element of Nicholls’ decision was the environmental benefits of gas. Nicholls are able to achieve significant carbon and air quality improvements.
Using Gasrec’s Bio-LNG from waste-only sources, Nicholl’s have benefited from CO2 savings of over 80%, as well as a 99 per cent reduction in particulate matter and 90 per cent in NO2 emissions compared to equivalent Euro VI diesel trucks. HGVs running on gas are also around 50 per cent quieter than their diesel equivalents.
Impact on drivers
Nicholls’ drivers have had little cause to notice the difference between diesel and gas. Gas is odourless, cleaner than diesel, and emits less harmful pollution.
Refuelling time
A typical LNG tank will take between 3 and 5 minutes to refuel from empty, meaning the refuelling time is no longer than a diesel vehicle.
“As more low emission zones are launched in our cities, so gas will become key for operators to carry out work for their customers. Our trucks are also quieter than diesels which means we can make deliveries without compromising local noise levels.”
Cost savings
New gas vehicles tend to come at a premium compared to new diesel trucks. However, the additional expenditure is offset by the fuel cost savings, with gas costing around 50% of the price of diesel and duty on gas fixed at 50% of diesel duty (until 2032).
An operation with an average mileage of 150,000km and average MPG of 9 can expect to save at least £15,000 per year in fuel costs. Allowing for £30,000 additional CAPEX and fuel cost savings of £15,000 per year, vehicle will have save the business £60,000 by year 6.
The payback period of the extra investment under the above conditions was two years. The return on investment, assuming a six-year truck lifetime, is 200%.
For a relatively small business operating in the highly competitive transport/logistics sector, using an alternative fuel is an opportunity to significantly reduce their cost base.