A shared goal
Let’s start with a truism: the journey to a more sustainable future is not a straightforward one. For DFDS, decarbonising our road transportation network involves navigating a complex landscape filled with stakeholders - subcontractors, partners and customers - from diverse backgrounds, often with varying priorities. While the need for change is urgent, we have to keep in mind that every choice we make when decarbonising our own DFDS cosmos will have repercussions right across the picture.
In the fragmented European transport market, where around 75–80% of over 500,000 operators are small companies with limited resources, collaboration across the value chain is key. As a relatively big player, we have to use our advantages of scale to be a front runner; and we are: we have more than 100 e-trucks in our fleet already, we use HVO fuels, we are looking into hydrogen trucking pilots… there’s a lot going on! We are making the investment, and putting in the research, with the aim that in time, alternative fuels and new technologies should hit the market at an affordable price point, and everyone can jump on board. Ultimately, sustainability – incorporating the three Ps of planet, people and profit - isn’t a competitive edge, it’s a global imperative. The practical route to a shared net-zero goal requires the careful consideration of short-term and long-term commercial needs, for all stakeholders.
Why isn’t HVO the answer?
Our decarbonisation targets at DFDS are ambitious, and necessarily so. This means that our decision-making has to include balancing the requirement for immediate greenhouse gas reductions with an understanding of the potential trade-offs involved. Hydrotreated Vegetable Oil (HVO) definitely provides a relatively quick way to reduce emissions as a cleaner alternative to diesel; but we’ve always been clear that we see it very much as a transition technology. It’s cutting our emissions right now, which is what we want and need to have happen - but it’s not a perfect solution.
For one thing, whilst HVO significantly reduces greenhouse gases compared to diesel, there are still particles that are being emitted, both in production of the fuel, and in operation. HVO relies on finite, bio-based sources and is produced through resource-intensive processes that have their own environmental impacts, depending on what feedstock is used. Availability varies – as does pricing; HVO is quite accessible in Sweden and Denmark, for example, but has only recently been an option in Germany, and provision is patchy in the UK, which obviously has implications for efficient route-planning. The quality seems to vary massively, too: getting properly certified HVO is tricky all over the place, and buying non-certified, mass-balance HVO could result in the product in our tanks actually being diesel. And on top of all this, we need to keep looking at that global picture: it may well be that as technology advances, there will be sectors where there are fewer options for decarbonisation than there are in road transportation, meaning it might make sense to prioritise the scarce supply of sustainably-produced HVO for areas where electrification or the use of hydrogen, for example, just aren’t possible.
DFDS is therefore investing in HVO where it makes sense for existing vehicles, allowing us to cut emissions in the near term. However, we are also continuing to work on identifying longer-term solutions that can fully eliminate our emissions footprint; as a corporation and as a species.
Why not just go all electric?
It’s fair to say that DFDS has been leading the way in fleet electrification for some time now; we currently operate Europe’s largest electric truck fleet, and an order for 100 additional vehicles placed in March 2024 will bring the total number we can have on the road to 225. This can’t just be a numbers game, though. If we’re going to run an efficient electric fleet, we need the charging infrastructure for it. And if we are charging our trucks with electricity generated from fossil fuels; well, that’s going to significantly reduce the overall benefit of having e-trucks in the first place, which is we both produce and procure renewable electricity, and guarantee that our eTrucks run on renewable electricity when we are responsible for sourcing the charging.
So yes, we do want to electrify our road operation where we can; but for environmental impact, not for show. This means thinking not only about us, but about everyone impacted by our systems: suppliers, subcontractors, customers – and competitors. Collaboration is crucial, to make sure that any charging infrastructure is used to its fullest, and to find optimal locations for charging, for example – but also, to share learnings and build expertise in what is a new landscape for everyone. As an industry, we’ve had decades to optimise the operation of diesel trucks; switching to new technologies will always mean a drop in efficiency at the beginning, and working together has got to be the best way of mitigating this. We’re delighted that there are so many collaborations, consortia and NGOs forming (including, for example, the European Clean Trucking alliance, of which we are a part - a group of over 35 companies and organisations from across Europe calling for decarbonisation of road freight), where competitors are sitting at one table and really discussing what is needed to transform the industry.
What about the cost?
Naturally, customer expectations play a crucial role in DFDS’s decision-making. Many of our clients are setting ambitious climate targets of their own, and they expect their partners to align with these values. This adds pressure to accelerate our decarbonisation efforts, but it also encourages a mutually beneficial relationship, as we work together to meet shared decarbonisation goals. The meetings we have with customers to explore this area are hugely educational on both sides, as we work to understand their needs, clarify our position and encourage them to come on the journey with us.
Our challenge is to provide more sustainable solutions without transferring unbearable costs to customers (you can read more about how we go about this here). There is no getting away from the fact that - to start with, at least - a green approach to transportation is rarely going to be the cheapest option. Part of our task, then, is to produce credible, data-rich models that demonstrate the long-term value, both environmental and commercial, of actively contributing to a decarbonisation process, which starts with efficiency. We need to show that it’s not a leap of faith that’s needed, but thoughtful, strategic decisions made with clear, far sight.
