New Energy World™
New Energy World™ embraces the whole energy industry as it connects and converges to address the decarbonisation challenge. It covers progress being made across the industry, from the dynamics under way to reduce emissions in oil and gas, through improvements to the efficiency of energy conversion and use, to cutting-edge initiatives in renewable and low-carbon technologies.
Building the business model for decarbonised road transport
15/5/2024
6 min read
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How do you decarbonise a transport company? Here, Alex Jensen, CEO of National Express, responsible for coach, rail and bus transport modes for the company, explains.
What comes to mind when you hear the words ‘National Express’? Is it one of our white coaches perhaps, gliding down a motorway; or our partnership with Wembley or Glastonbury? Our intention is that in the not-too-distant future you will think of an environmental leader in its field, which, with its fellow operators in the transport industry, has so radically transformed public transport, that people select it as their first choice.
Today, for too many people in the UK, public transport is not a first choice; they use it simply because they have no other option. In comparison with European counterparts, British cities are lagging far behind in the use of public transport. Our own experience of Cologne and Birmingham backs this up. According to the Centre for Cities Gear Shift report, Cologne has almost double the share of commuters using public transport that Birmingham does (32% versus 18%).
And it’s not just about cleaner air or tackling the climate emergency. The Resolution Foundation estimates that if the productivity gap between Birmingham and London was reduced by a third – an ambition which relies on better public transport as a key component – total Gross Value Added (GVA) would be boosted by £6.9bn/y (in 2019 prices). So, the value of a transformed public transport system is clear: addressing the climate crisis, leading to cleaner air; increased productivity; economic growth and better health outcomes.
How are we building a sustainable business model that accelerates this transition? First, it’s about recognising that public transport is in itself a greener option. Every full coach equates to one mile of cars off the road, not just reducing the carbon impact, but also reducing congestion and improving air quality.
So, the first step in sustainability is to encourage people to adopt at a faster rate. Whether we’re talking trains, buses or coaches, we know our customers need it to be affordable, convenient, reliable and green. To be able to deliver on this requires long-term investment in infrastructure, in low-carbon energy systems, in fare subsidies and a level playing field across all public transport modes. A strong public transport network gives people the confidence to put their faith in it for the most crucial journeys.
Second, it’s about making an inherently environmentally-friendly sector even greener through decarbonisation. Our strategy sketches out four key areas: product, property, people and procurement.
Whether we’re talking trains, buses or coaches, we know our customers need it to be affordable, convenient, reliable and green.
Decarbonisation in four steps
Our product is our vehicles. National Express has made huge strides decarbonising the fleet with around a third of the 1,400-strong bus fleet we run in the West Midlands soon to be zero-emission at tailpipe. This includes all our double-deckers in Coventry, under the UK’s first All Electric Bus City scheme.
And in our coach business, we have recently trialled a battery electric vehicle running to and from Stansted Airport, with some encouraging early results for our partners, consumers and our business. But the societal need – as well as the strong business case – calls for us to go further.
In the UK, particularly in the north, we see communities that are not well-connected and coach travel is seen as part of the solution, with an ability to turn on the tap instantly where there is a need. To deliver a truly integrated public transport system, all modes have to be considered as part of the mix.
Second, property. Our portfolio of offices, garages, depots, coach stations and out-stations all contribute to our carbon footprint, so improving their efficiency is key. We’ve already switched to green energy contracts for our entire portfolio, but that’s only part of the story. Our goal is to drive the energy demand of our buildings down through technology – using sustainable lighting, heating and water systems that will enable the building to be powered through site-generated power, for example with solar photovoltaics.
Our new state of-the-art depot at Perry Barr (Birmingham) gave us the opportunity to build our decarbonisation strategy into the design phase of the site. Through sustainable construction methods, we were able to reduce the carbon footprint of the build. Investment in systems such as air source heat pumps, grey water recycling and passive infrastructure for our electric vehicle (EV) fleet has ensured the efficiency of the building meets the BREEAM (Building Research Establishment Environmental Assessment Methodology) ‘excellent’ standard.
On people, we are engaging our teams with our purpose. We know that the environment and the sense of pride that comes from working for a sustainable business is a big element of our talent attraction and retention strategy.
Finally, procurement. Through our partners we have been able to innovate, and now have mild hybrid, electric and hydrogen vehicles in our fleet, with hydrotreated vegetable oil (HVO) soon to be added in Dublin. This mix has enabled us to gain practical experience that guides our thinking for the future. Take, for instance, the question of hydrogen: while the ranges of EVs continue to advance, we recognise that some duty cycles (for example, long distance coach routes with a high payload) may require hydrogen.
For our urban bus fleet, in partnership with Birmingham City Council, we’ve been trialling 20 hydrogen buses. We’ve seen that the vehicles themselves are reliable and efficient, but we’ve experienced some challenges with access to fuel. Given what we’ve learnt from that small trial, we’ve made the decision to move away from hydrogen in the immediate term for urban bus, as it doesn’t currently stack up without a reliable fuel supply. But this isn’t a VHS versus Betamax moment: it is highly likely that we will ultimately need a blended solution on our networks, particularly for coaches.
So, how do you decarbonise a transport company? It requires strategic forethought; a clear understanding of customers’ needs to accelerate the selection of public transport as a preferred mode. It requires the building of strong partnerships, collaboration across the public and private sectors and it certainly doesn’t happen overnight. But by taking lots of actions, big and small, we can move towards to an even more sustainable offering for customers, stakeholders and society as a whole.
The views and opinions expressed in this article are strictly those of the author only and are not necessarily given or endorsed by or on behalf of the Energy Institute.
- Further reading: ‘On the move: decarbonising the UK’s transport’. A view on how the move to alternative, low-carbon fuels for UK road and rail users will play out in the next few years.
- The European Commission is offering about €1bn of funds to support the deployment of alternative fuels supply infrastructure across the European Union’s main transport corridors and hubs.
