Cutting your fleet operating costs while boosting your company's reputation, and contributing to a healthier environment, is a win-win-win scenario. For fleet operators and business owners, transitioning to alternative fuels isn't just an environmental imperative—it's one of the smartest financial moves to be made. And, while contributing to cleaner air through reduced emissions, and significant cost savings in fueling and maintenance are reason enough for businesses to transition their fleets to alternative fuels, we are also seeing mounting pressure from customers and regulatory agencies demanding businesses shift away from gasoline and diesel emitting vehicles.

With all of that in mind, there has never been a better time to explore the benefits of alternative fuels for commercial fleets. But, before we dive in, it's important to define what a commercial fleet is.

A commercial fleet is a collection of vehicles owned or leased by businesses to transport goods or provide services. These fleets range from small groups of cars to vast arrays of light-duty to heavy-duty trucks, buses, or specialized vehicles. With the emissions from light-duty, medium-duty, and heavy-duty trucks making up a combined 59.37% of US transportation sector emissions in 2022, the transition to alternative fuels is becoming increasingly important for fleet operators seeking to reduce their environmental impact and operational costs.

While there are numerous compelling reasons for fleet operators and business owners to consider transitioning to alternative fuels, there are also unique challenges and considerations to keep in mind. While we see increasing regulatory pressure to reduce vehicle emissions, many businesses are also feeling an increase in customer demands for environmentally responsible business practices. Many businesses are getting ahead of these pressures by establishing Environmental, Social, and Governance (ESG) goals to promote sustainability and reduce their carbon footprint. 

But, while enhancing public image and adopting "greener" practices is compelling, it would be a tough pill to swallow if it resulted in increased operating costs. Luckily, operating a fleet that is powered from alternative fuels can be a cost-saving business decision, one that could make a big difference on the balance sheet.

However, while operating an alternative fuel fleet can save money, there are still challenges that arise related to how to transition. And with so much information (some of from conflicting sources) it's easy to get overwhelmed or confused. So with that in mind, we're going to go through some of the most common challenges and give you actionable solutions that you can implement right now. Sound good?

Choosing the right fuel type(s) to work with: ​There are many different fuel types that make up the "Alternative Fuels" category and they each act as a piece of the larger puzzle. Sometimes a fleet might chose to transition to only one fuel type while others may chose multiple fuel types depending on the use case and application.

​While the following list isn't the entirety of available options, these four fuel types are the most recommended:

• LPG (Liquified Petroleum Gas): Also known as propane, LPG is a clean-burning fuel with an established infrastructure. It is often used in buses and delivery trucks, offering lower emissions and cost savings. Renewably sourced propane, produced from sustainable feedstocks like waste oils and fats, offers the sae performance and lower emissions as conventional LPG but with a reduced carbon footprint. 
• CNG (Compressed Natural Gas): CNG provides lower emissions and cost savings, suitable for various fleet sizes. It is a popular choice for municipal buses, refuse trucks, and delivery vehicles. Renewable CNG, derived from biogas captured from organic waste, provides an environmentally friendly alternative to conventional CNG with significantly lower greenhouse gas emissions. 
• H2 FCEV (Hydrogen Fuel Cell Electric Vehicle): Hydrogen fuel cell vehicles offer quick refueling and long driving ranges, ideal for heavy-duty and long-haul applications. They emit only water vapor and are becoming a significant option for fleets.
• BEV (Battery Electric Vehicle): Electric Vehicles offer zero tailpipe emissions and significantly lower maintenance costs, making them a go-to choice for fleets of all sizes looking to service short to medium sized routes. They require charging infrastructure but provide significant cost savings and environmental benefits.​

Larger Upfront Investments: While operating costs are usually lower for alternative fueled fleets, the initial cost of purchasing new vehicles and installing necessary infrastructure can be substantial, posing a significant financial barrier. This is a well-known challenge and there are a number of potential subsidies available from federal, state, and local agencies as well as in some cases programs being offered by local electric utilities.

Vehicle Availability: ​The market for alternative fuel vehicles is still developing, and operators may struggle to find vehicles that meet their specific needs and performance requirements in a desired timeframe. It is expected that as the market matures, more vehicles and vehicle choices will be produced to meet the increasing market demands.

Fueling Infrastructure: Establishing reliable fueling or charging stations is critical for any fleet and many operators face challenges with limited space for infrastructure on their property and insufficient public refueling infrastructure. This is one of the most significant challenges and as a result has seen a lot of attention to provide solutions. 

Lack of Knowledge: Many fleet operators don't know where to start with the transition due to the multifaceted nature of the process and general lack of comprehensive plans or guidelines. Navigating the complex landscape of available financial incentives, grants, rebates, and other subsidies can be overwhelming, and missing out on these can make the transition less financially viable. Even the smallest mistakes on applications and forms can have potentially significant consequences or unforseen tax implications. Working with an expert is strongly recommended.

Workforce Development: Ensuring drivers and operators are adequately trained on the new vehicle technology is crucial for safety and efficiency, yet this can be a logistical and financial challenge. Fleets that repair or maintain their own vehicles must ensure that technicians are properly trained and have the appropriate certifications.

While the challenges facing businesses and operators looking to transition to alternative fuels can be daunting, there are a number of solutions already available to assist and overcome them. The following recommendations are immediately actionable strategies for businesses and fleet operators looking to gain knowledge and/or take action to transition their fleet to alternative fuels.

Comprehensive Planning: Develop a detailed transition plan that includes an analysis of vehicle needs, route requirements, and potential fuel types. A clear plan provides a roadmap for the transition process.

Leverage Financial Incentives: Research and apply for grants, subsidies, and incentives to reduce upfront costs. Taking advantage of financial sup[port can make the transition more feasible. 

Phased Transition: Consider transitioning a percentage of the fleet at a time to manage costs and operational impact. A phased approach allows for adjustments and learning during the process. 

Investment in Infrastructure: Assess the feasibility of installing fueling or charging stations as needed. Explore on-site fueling or charging or partnerships with public infrastructure providers. Ensuring reliable access to fuel or charging is critical.

Training and Development: Invest in workforce training to ensure that in-house maintenance teams are equipped to handle the types of vehicles.

Driver Education Programs: Implement comprehensive training programs to educate drivers and operators on the specifics of the new vehicles and fuel types. Well-trained drivers can maximize the efficiency and safety of the new fleet.

Consult Experts: Engaging with experts who specialize in fleet transitions can provide invaluable guidance and support. Expert consultation can help avoid common pitfalls, streamline the transition process, and maximize financial incentives. 

...Reach out to Fleet Sights for Assistance: For business owners and fleet operators looking to navigate the complexities of transitioning to alternative fuels, expert firms like Fleet Sights can assist with developing a transition plan, identifying and accessing financial incentives, work through vehicle choices, and make recommendations for establishing necessary infrastructure. With Fleet Sights, owners and operators can make informed decisions and ensure a smoother transition process.

Transitioning a fleet, no matter how big or small, is not just about compliance or cost savings - it's committing to a healthier environment for our cities and communities and demonstrating leadership in sustainability. By addressing the challenges head-on and leveraging the right resources, business owners and fleet operators can pave the way for a cleaner, more efficient future.

• The all-new Mercedes-Benz eSprinter is a versatile all-rounder with an impressive triad of efficiency, range and load capacity.
• For the first time, American customers can make their fleet more sustainable with a locally emission-free, battery-electric van bearing the Mercedes star.
• The cargo van variant of the all-new eSprinter with the highest range will be launched in the U.S. and Canada in the second half of 2023, while the market launch in Europe will follow towards the end of 2023.
• Production network expanded: The all-new Mercedes-Benz eSprinter will be produced in Charleston (South Carolina/USA) and Ludwigsfelde, Germany in the future in addition to the Mercedes-Benz plant in Düsseldorf.

Mercedes-Benz has announced their plan to "systematically electrify all model series." Their latest vehicle, an update to the eSprinter, boasts improved range and charging. Produced in both North America and Europe, this van is designed to be a true global vehicle and will soon be available in around 60 markets, helping Mercedes-Benz reinforce their position in the light commercial vehicle segment worldwide.

​The eSprinter is packed with cutting-edge technology and is built on a new three-module concept, which offers unparalleled flexibility in the development and design of different conversions and superstructures. This modular approach allows for the integration of features that were previously only available in conventionally powered Sprinter van models.

The first section is the front module, which features a uniform design that houses all of the high-voltage components (AC charger, power inverter, etc). This module can be used across all vehicle variants, regardless of wheelbase or battery size. The second section contains the high-voltage battery and is located in the underbody to maximize space and optimize weight distribution. This positioning ensures a low center of gravity for improved handling and driving safety. The third pillar is the rear module, which includes the electrically-driven rear axle and a compact yet powerful electric motor. This rear module is used across all variants of the eSprinter, thanks to the common parts strategy employed in its design.

The eSprinter has received a significant investment of approximately 350 million euros from Mercedes-Benz. To adapt production in the Charleston, Düsseldorf, and Ludwigsfelde plants, around 50 million euros will be invested in each location. The modular design of the eSprinter offers maximum synergies in production, resulting in a significant "economies of scale" advantage. This streamlined approach in the production process makes the assembly of the eSprinter more efficient and cost-effective as the production lines will all be the same regardless of geographic location.

The launch of the all-new eSprinter will take place in the second half of 2023 here in North America, where it will be available as a long cargo van with a high roof. The vehicle is equipped with the largest available battery, boasting a usable capacity of 113 kilowatt hours. With a load capacity of 488 cubic feet and a permissible gross vehicle weight of 4.25 tons, the eSprinter is designed to meet the needs of businesses that require spacious, versatile, and sustainable transportation solutions.

Estimated ​Range
The company claims the range, which is based on a simulation using the European WLTP cycle, will be up to 400 kilometers (248 miles). Their simulated range based on the WLTP city cycle is expected to be up to 500 kilometers (310 miles). There is no EPA range estimate at this time, but it can be safely assumed to be roughly 11 percent less. Even still, this is an upgrade from the original version of the eSprinter which had a significantly limited range of just 100 km.

Electric Powertrain (eATS)
The eATS (electric auxiliary powertrain system) in the all-new eSprinter features two  main components - an electric rear axle and an efficient motor - which are being used for the first time in a Mercedes-Benz battery-electric van.

Weighing in at just 286 pounds, the permanent magnet synchronous motor boasts exceptional efficiency and optimized thermal management. It will be available in two power levels - 100 or 150 kilowatts of peak output. Additionally the motor can deliver  up to approximately 295 ft-lbs of torque.

High Voltage Battery and Charging
Mercedez-Benz will be offering the largest battery available for the eSprinter to North American customers with a usable capacity of 113 kilowatt hours. The battery uses a lithium/iron phosphate (LFP) cell chemistry which eliminates cobalt and nickel. Additionally, active thermal management will keep the battery at optimal operating temperature and extend battery life.

AC charging will be at 9.6 kW for overnight "refueling" while DC Fast Charging will be available as well when needed at a max rate of 115 kW. That's nothing spectacular, but the company says that it should still be able to recharge from 10 to 80 percent in roughly 42 minutes. Even while being a slower charge rate, this should not be a significant issue for any potential customers.

There is no information yet about pricing for the van, but a safe bet is that it will be roughly $50,000 or so.