Innovation

Electric heavy machinery use is directly related to four of the United Nations Sustainable Development Goals (SDG). First of all, it is consistent with SDG 9, which focuses on industry, innovation, and infrastructure, because electric loaders represent an innovative and environmentally responsible approach to infrastructure development and construction. Second, it contributes to SDG 11, which focuses on Sustainable Cities and Communities, by reducing air and noise pollution in urban areas, encouraging sustainability, and increasing quality of life. Third, it supports SDG 13, Climate Action, by reducing carbon emissions, thus contributing to the battle against climate change and lowering the building industry's carbon footprint. Finally, it is directly related to SDG 7, Affordable and Clean Energy, which strives to guarantee that everyone has access to affordable, dependable, sustainable, and modern energy. Fulton Hogan's use of electric loaders and excavators over traditional diesel-powered machinery corresponds with this aim, helping to reduce greenhouse gas emissions and air pollutants and so advancing the SDG 7 target of clean energy.

Fulton Hogan runs the electric loaders for approximately 4 hours in the morning, then charges them at lunch if a charger is available before continuing to run them for a similar afternoon period and then trickle charging them overnight.

Inspiration

The primary motivation for bringing these loaders into the company was Fulton Hogan's carbon emission plan. Fulton Hogan's overall sustainability and emissions reduction efforts have resulted in the introduction of electric loaders. "We have a strategy in place to reduce our carbon emissions by 30% by 2030, which was a big motivator," Tim said, "and to start, we need to look at the big fuel burners, and this is a function of that." These goals are also in accord with the government's." As seen in the preceding statement, the innovation relates to and is closely associated with a sense of mission that changes do need to be made within the construction and roading industries in New Zealand and that, while the technology is not the best at the moment, Fulton Hogan has made the decision to take this step in the right direction. "This is a moving brief because of what is currently available in the New Zealand market, and technology is constantly evolving, so the innovations that we implement will change as technology evolves." While there are legislative guidelines in place, it is apparent that Fulton Hogan is determined to make a difference. The introduction of electric loaders and excavators by the company is totally by choice, demonstrating that Fulton Hogan does wish to make a difference by reducing their emissions.

Overall impact

In terms of short-term effects, Electric loaders create no emissions through their exhaust, which helps to enhance workplace air quality, which benefits consumers, employees, and the environment. Electric loaders are substantially quieter than conventional diesel loaders, resulting in less noise in the workplace and eliminating the need for hearing protection.

The most visible long-term benefits are in the area of fuel savings. The XCMG full electric loader has a power output of 270 kW, which is approximately a 10% boost in power and a 50% increase in acceleration over standard diesel loaders, all while being battery-powered (Brown, 2023). Cost savings over time can be significant. Fulton Hogan meets its sustainability goals by lowering emissions with zero-emission loaders. This is expected to enhance the company's reputation and attract environmentally conscious clients.

With fuel prices always fluctuating, electric loaders are more immune to price changes, resulting in more consistent operating expenses over a longer period. Additionally, these loaders feature fewer moving parts than standard diesel loaders, resulting in a longer loader lifespan.

Tim mentioned that the upfront cost of these electric loaders is now higher, but because these loaders are replacing loaders that may burn between 17 and 30 liters of fuel per hour, the upfront cost is recouped in the long term. Tim explained to me that it is currently not financially advantageous to replace smaller diesel loaders with an electric loader because the loader does not consume a lot of fuel in the first place, so the upfront investment is not recouped in fuel savings. He also stated that because New Zealand is a much smaller market, we are often not the first to have the newest technology made available to us, but when this technology becomes available to Fulton Hogan, they will undoubtedly assess it and determine if it is suitable to take advantage of, hopefully making it financially viable to replace smaller diesel loaders with battery electric loaders.

Business benefit

The implementation of electric loaders has been beneficial not only to the environment and society but also to Fulton Hogan. This happened in various ways. The majority of the advantages gained by implementing electric loaders are related to employee well-being. Diesel-powered Loader operators are subjected to long periods of heavy machinery noise, such as loaders idling, which is completely eliminated when using an electric loader. When operating a diesel loader, loader operators are additionally exposed to diesel fumes and other potentially dangerous emissions, which are removed when operating an electric loader. With the implementation of electric loaders comes new job opportunities and the opportunity for present employees to gain new skills in the electrical industry. The advantages of electric loaders are not just for external stakeholders, as the aforementioned three points demonstrate.

Social and environmental benefit

Fulton Hogan's use of electric loaders offers significant societal and environmental benefits. The benefits of innovation in terms of the environment are obvious yet significant. With these loaders, there are zero emissions, which means that fewer pollutants are emitted into the environment each year, decreasing some of the world's most serious challenges, like climate change and deforestation.

While the majority of Fulton Hogan's fleet is still diesel-powered, they have taken a positive step and are actively seeking to scale their battery-electric fleet. Although New Zealand is a small piece of the puzzle on a global basis, a huge company like Fulton Hogan scaling its battery electric fleet will have a national impact.

There is a clear correlation between environmental benefits and societal benefits in the sense that environmental benefits generally lead to increased social benefits. Tim explained to me that, while zero-emission electric loaders are good for the environment, they also have important societal benefits in terms of air quality and noise.

A crucial area where Fulton Hogan has multiple diesel loaders is their quarries, which frequently face strong opposition from locals in the nearby towns when proposed. Tim believes that the use of electric loaders will play a small role in helping change the minds of individuals who oppose quarries. Electric loaders will reduce noise and air pollution for nearby neighbors.

Tim also provided an example of a 5-tonne electric loader that Fulton Hogan is implementing for its paving team. Scaling the battery electric fleet at Fulton Hogan into areas of the business such as paving crews will have a huge impact on society for a variety of reasons, including the proximity of paving crews to residential areas.

Interview

Tim Glanville, National Fleet Manager