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New Energy World magazine logo
New Energy World magazine logo
ISSN 2753-7757 (Online)

Caught in the net: commercial transport move to battery power held up by cost issues

25/6/2025

8 min read

Feature

Concrete mixer truck parked on grey tarmac Photo: Renault Trucks
Renault Trucks’ battery-electric E-Tech C 10x4 equipped with a concrete mixer from Schwing Stetter, ideal for low-emission zones

Photo: Renault Trucks

Large goods vehicles (LGVs or HGVs) currently account for around 18% of UK CO2 emissions, so they are an important target in the quest for net zero. Many barriers face the adoption of any type of zero-emission truck: a report from the Green Finance Institute (GFI) last year identified issues ranging from operational restrictions to inadequate charging/fuelling infrastructure and – most of all – high initial purchase price, writes Toby Clark.

Diesel-powered trucks have in some cases been replaced by natural gas-powered trucks, for lower tailpipe emissions, and some operators use renewable biodiesel or other synthetic fuels, but these options are limited There is a decent choice of battery-electric HGVs available in the UK: around 35 models at the moment, and increasing quickly. However, some manufacturers are looking at sustainably-sourced green hydrogen as a fuel source, with a fuel cell to generate electricity (see Box 1). A few companies – notably JCB – are developing hydrogen-fuelled internal combustion engines, although these are largely targeted at off-road construction and mining activities.

 

Still, the number of electric HGVs on British roads is almost vanishingly small: just 97 were sold in the first three months of this year, and while this is almost double the number from the same period in 2024, still less than 1% of the UK HGV fleet is electric.

 

The Society of Motor Manufacturers and Traders (SMMT) says zero-emission HGVs ‘must grow rapidly over the next decade if the UK is to achieve its target for all new HGVs up to 26 tonnes – the majority of the market – to be zero emission by 2035, with the remainder of the sector following by 2040’.

 

The hydrogen start-up 

Photo: HVS

 

UK firm HVS (Hydrogen Vehicle Systems) has been developing a hydrogen-fuelled fuel cell electric truck which has reached prototype stage and undertaken track testing. The truck is fuelled by gaseous hydrogen in tanks at a pressure of 700 bar; the firm estimates that a 15–20 minute fuelling will give the truck a range of up to 600 km.

 

The vehicle looks promising, and HVS has signed agreements with operators to trial it on the road, but a lack of financing means that the firm may move away from producing trucks and towards licensing its technology.

 

What are the barriers to decarbonising commercial goods transport?  
The first barrier to the widespread adoption of electric HGVs is simply cost: the GFI report (see Box 2) estimates the purchase price of a battery-electric truck is sometimes twice or three times as much as a conventional HGV, so that even with lower running costs, the total cost of ownership is likely to be higher. This initial cost is a particular issue for the many smaller operators who make up a large proportion of the UK fleet.

 

Most of the firms operating electric vehicles so far have been depot-based, with their vehicles returning at the end of the day to be charged overnight; this has been the model for the rapid introduction of electric buses. But much of the truck fleet operates further afield, with overnight breaks at truck stops and the like.

 

However, there are precious few publicly-available charging points for trucks, or hydrogen refuelling stations. In March the government announced plans for 54 new HGV charging hubs – but the EU’s Green Deal has introduced a requirement to install HGV charging stations every 60 km between key cities and transport nodes by 2030. The GFI report says: ‘In the UK, this would mean 8,200 chargepoints, costing between £1bn and £2bn in total.’

 

There are also issues with private charging stations. The SMMT says: ‘Immediate action is needed to remove onerous planning procedures that prevent timely rollout of charging and refuelling infrastructure at depots – meaning operators may have to wait up to 15 years for a grid connection – as well as on the strategic road network.’

 

At least one perennial complaint should disappear soon. Most European manufacturers have settled on the Megawatt Charging System (MCS) standard for truck charging. Once the infrastructure is in place, this will allow a substantial (eg 20–80%) charge for even the largest trucks within the statutory 45-minute break that drivers take every 4.5 hours.

 

Battery-electric vehicles tend to be heavier than their internal-combustion counterparts and, where the overall weight is restricted, this limits the usable payload. To compensate, various countries give zero-emission vehicles a weight allowance: in the UK this is up to 2 tonnes, although there is no increase in axle load rating, making the allowance difficult to use. There is debate about this issue across the EU, where a 4-tonne allowance is proposed but the potential harm to the road infrastructure is at issue.

 

What government support is available, and how does the UK compare with Europe?  
The SMMT says there is ‘much more to be done to ensure commercial vehicle operators can make the business case work for purchasing zero-emission vans and HGVs’.

 

The UK’s incentive schemes are run by the Office for Zero Emission Vehicles (OZEV), a joint operation between the Department for Transport and the Department for Energy Security and Net Zero.

 

Since 2016 the UK has offered a ‘Plug-in Truck Grant’ for zero-emission HGVs, in the form of a 20% discount on the purchase price paid to the dealer. To be eligible, the vehicle must have CO2 emissions of at least 50% less than the equivalent conventional vehicle with the same capacity, and be able to travel at least 96 km without any emissions.

 

For small trucks (4,250–12,000 kg gross vehicle weight) the maximum discount available is £16,000, while for larger trucks (>12,000 kg) the discount is capped at £25,000. In practice, these limits are always met.

 

The Plug-in Truck Grant was going to end in this financial year, but in March the government announced that it would continue at the same levels into 2026. However, it is a limited scheme, offering a total of only 250 small truck grants (limited to 10 per end customer) and 100 large truck grants (up to five per customer).

 

The UK’s grants are mean compared with those in some other European countries: in Austria, for instance, there are subsidies of up to €72,000 for electric trucks, and grants of up to €30,000 to install a publicly-accessible charging point.

 

The Belgian region of Flanders will give smaller operators up to 40% of the additional cost (up to €400,000) of buying two electric trucks, while France offers both financing help of up to €50,000 and a substantial allowance on corporation tax – up to 60% of the cost of the vehicle.

 

Still, costs may come down as competition hots up and manufacturers have to hit emissions reduction targets.

 

What are the latest product developments?  
Mainstream manufacturers have entered the market cautiously and are growing their sales steadily; most started with lighter rigid distribution trucks before progressing to heavier, longer-range tractive units. Mercedes-Benz Trucks, for example, recently introduced its eActros 600 tractor, claiming a range of at least 500 km at 40 tonnes weight. Amazon has ordered 147 for UK operation – which would almost double the annual sales of zero-emission trucks in this country.

 

IVECO’s S-eWay tractor is designed for more regional usage, with a claimed 400 km range – but has become a star on YouTube thanks to German driver ‘Elektrotrucker’, who demonstrates it being driven long distances across Europe.

 

The other mainstream European truck makers – Volvo, Renault Trucks, Scania, MAN and DAF – all now have tractive units designed for long-distance operation at up to 44 tonnes gross vehicle weight.

 

Tesla announced its Semi battery-electric truck in 2017, and has delivered a few dozen to trial operators in the US. UK customers have been able to place orders on payment of a £15,000 deposit since 2022, but full production is still not due until 2026. The specs of the Semi are impressive (800 km range is suggested) but a recent US report suggests that the price may have gone up from around $180,000 – competitive with a premium diesel truck – to more than twice this amount.

 

Other zero-emission-only truck makers including Nikola and Tevva have gone bust, while Volta is currently in administration.

 

But the zero-emission trucks sector in China is in a different league: over 15,000 units were sold there in December 2024 alone (20% of the HGV market). Almost all of those were battery-electric, with hydrogen fuel cell models making up less than 1% of the market. The Chairman of battery maker CATL reckons that half the new truck market in China could be electric by 2028. As you might expect, the market is dominated by Chinese manufacturers, and some will be coming here: SANY has announced an electric truck for the construction sector in Europe.

 

Fleets also need to consider other issues, such as specialist technician training for battery-electric or hydrogen-fuelled vehicles, and workshop safety issues. However, these have been largely codified and are dealt with by trade organisations such as IRTE.

 

Much needs to be done to meet government targets for zero-emission trucks: the vehicles and technology are there already, but the cost (which may get lower) has to be addressed with subsidies or creative financing, and the infrastructure needs to be developed.

 

GFI report 

The Green Finance Institute’s 2024 report Delivering Net Zero (subtitled Unlocking public and private capital for zero emission trucks) identifies a host of issues which limit the take-up of zero-emission trucks, and proposes financial and legislative measures to make it easier.

The GFI’s main recommendations are (unsurprisingly) for financing measures for the trucks and the infrastructure. These usually involve an element of risk-sharing between operator, manufacturer, finance company and government.

 

  • Further reading: ‘Speeding ahead: truck sector gears up for net zero’. The heavy road freight sector in the UK and Europe is gearing up to switch from diesel to predominantly battery-electric trucks, says Transport & Environment, along with hydrogen fuel cells and e-fuels, to accelerate decarbonisation on the road to net zero.  
  • The market for battery-electric heavy-duty vehicles is growing quickly, but the main growth has come from depot-based vehicles which can be charged at a moderate rate while they are unused: buses, municipal vehicles and local delivery trucks, for instance. In contrast, long-haul trucks and coaches need access to fast charging to make the most of the working day. And this is where the Megawatt Charging System (MCS) comes in. Find out how it could charge vehicles at rates of a megawatt – a thousand kilowatts – or more.