Greg Masters
University of Otago
Joe Cooper
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Transportation needs a big drive for change. The heavy transportation in New Zealand needs innovative techniques and business models now to help support a more sustainable future. By contributing to the UN Sustainable Development Goals (8. Economic Growth; 9. Industry, innovation and infrastructure; 11. Sustainable cities and communities; 13. Climate Action), HWR is doing just that. HWR is New Zealand’s largest transport company helping the heavy transport industry transition to a hydrogen-powered fleet. With dual fuel cell technology installed in 10 trucks that use 40% hydrogen, transition to carbon neutrality whilst paving the way to address demand and supply of these alternative fuels through their business model, HWR is driving change for their business and their customers.
The dual-fuel hydrogen HWR truck is a hydrogen–diesel hybrid using a modified intake system that displaces diesel in heavy transportation. This innovation enables a 30- 40% reduction in CO2 by retrofitting the existing fleet. Kim Hill, Innovation manager at HWR, points out that whilst the technology itself is not brand new, bringing it into New Zealand and having dual-fuel technology into different makes and models (OEMs) for a wide range of operations is what they are doing differently. Through international and local partnerships, HWR’s heavy transport fleet is currently being retrofitted and operated in conjunction with infrastructure getting built to support 100% hydrogen. HWR knows this is a short–term and necessary transitionary innovation to help the entire heavy transport industry take climate action by being accessible throughout the supply chain. Kim shares that “unique to our programme is that we have the ability to bring in both the demand, which is the dual-fuel system, but also recognising that we need the supply… and so we recognised really early in our programme that we needed both of those to be able to create the sustainable product”. HWR has formed great partnerships with companies and institutions around New Zealand, and UK, to make this innovation happen. HWR is collaborating with local partners to create different intake designs for the different makes and models to retrofit the transitionary innovation, and at the same time working with cryogenics experts in New Zealand to create the supply refuelling network to support this innovation. Kim also shares it is “really amazing” to collaborate with tertiary institutions such as Otago University to verify its data against the hydrogen modelling for New Zealand that is reinforcing the need for this technology and the impact that it is having for the long–term green hydrogen future within the heavy transport industry.
The inspiration behind HWR's use of dual–cell technology is a collective recognition of the urgent need for sustainable solutions in the heavy transportation sector. Kim shares the pivotal moment in the business when the board asked the innovation team “What does the longevity of the petroleum business look like? What can we offer our customers?” There was a realisation that something needed to be done within HWR to create a sense of urgency for step change climate action in the heavy transportation sector. HWR needed to lead the innovation and lead the change “We need to do something for our own future and the future generations and at this point there are no practical solutions for the heavy transport industry…so we need to be doing something. We really can’t wait”. Relying on incremental efficiencies is not simply enough for real change for HWR. “Yes, we can offer efficiencies, but we’ve been pushing those one to four percent efficiencies for years. How far can we push those? We need step change. What does step change look like? That’s when we started to explore the options in terms of what do electric vehicles look like, what are all those alternatives, and it was that journey that led us to this. We need to start with dual-fuel.”
The dual-fuel innovation is impacting both society and the environment. Kim shares that in the short term, the use of this innovation will cut each truck's emissions by 30 – 40%. “Using our dual-fuel technology, a truck running average km per annum will reduce emissions by 70T CO2e.” In a sector that is only starting to learn to drive climate action, there is a significant opportunity for all heavy transport providers to uptake this technology, reduce emissions, and scale this innovation quickly. Kim also shares the scalability potential “this is not only in NZ but across the world if we can use dual-fuel as a transitionary technology for hydrogen…it means companies can deliver on 30-40% reduction in emissions using dual-fuel”. With 10 trucks already converted and operating in the South Island, the innovation is well and truly embedded and demonstrating real climate impact. HWR continues to transition for full fleet conversion, in doing so creating new jobs, and increased expertise, capacity, and knowledge of hydrogen as a sustainable fuel solution in the heavy transport sector in New Zealand. This includes manufacturing the green hydrogen by helping build the refuelling network and the 1.1MW local electrolyser, through retrofitting the innovation to the existing fleet by local maintenance and design teams.
HWR benefits from its duel fuel innovation as it is differentiating itself within the heavy transportation industry, creating a unique competitive advantage. Customers are prepared to pay for decarbonising their fleet by 30 - 40% demonstrating the technology is practical, accessible, quick to install, and priced as a real option now to help transition heavy transportation “there is an amazing offering in there, especially in the short – term”. The dual-fuel technology is also strategically important for HWR to transition to hydrogen fuel technology for the long – term business success and truly supports sustainable economic growth (SDG 8. Economic Growth). As Kim points out, it is the right thing to do "having an opportunity for a step change in transport is attractive and is the right thing to be doing as well…this is a real alternative". This innovation has positioned HWR as a leader in sustainable heavy transportation solutions whilst achieving business growth which will lead to further development and changes. The wider benefits for HWR and the transportation industry extend beyond the innovation. The innovation has created the type of thinking and change that is urgently needed. It has created a new sense of purpose, passion, and excitement for innovative technology and change within HWR and the wider business sector. Kim recalls that “different areas of the business changed from being quite skeptical to being quite passionate about it and some of our drivers that are now driving the dual-fuel trucks, they're super excited to be part of it”.
HWR’s dual-fuel innovation is bringing about positive changes in both society and the environment. Reducing greenhouse gas emissions by 30 – 40% across the heavy transportation sectors and the impact of transportation-related air pollution contributes to direct climate action (SDG 13. Climate Action). The innovation is also creating a sense of excitement and validation amongst the community that HWR and this innovation is the right work for real climate action “It’s when they touch and see and feel the truck they're, oh wow, this is real. This is actually a truck that has got 30 to 40% less emissions than the next truck that's doing the same work beside it”. Kim mentions that this is creating a positive momentum for change, and everyone wants to be part of it “we're moving forward and that creates a snowball effect”. The long–term sustainable benefit of demand and supply of green hydrogen and HWR’s holistic approach will be investment in resilient hydrogen infrastructure and fostering innovation that supports SDG 9: Industry, Innovation, and Infrastructure. It is creating sustainable technologies to create jobs and providing fair access to decarbonise the whole heavy transportation sector.
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Kim Hill, Innovation Manager
