Biomethane fleet transition business planning

SLR assessed six sites with regard to biomethane production potential and the requirements of the company’s own transport fleet (existing and options for expansion).

Challenge

The client had successfully installed biogas upgrade infrastructure and deployed several biomethane vehicles from one of its facilities. The project need was driven by the client’s ambition to expand this approach to additional vehicles and sites in its portfolio, to transition from diesel fuels and increase self-sufficiency of the waste collection and haulage fleet.

SLR was commissioned to undertake a strategic review of how and when the client could transition to an in-house haulage fleet powered by biomethane generated at its own operational anaerobic digestion facilities. The goal was to assess the respective strategic roll out options, ranking sites and prioritising those with the ‘best’ portfolio business returns.

Solution

SLR reviewed baseline business data and developed a multi-criteria options screening process to create a ranked and prioritised business plan for fleet roll out.

Assessment criteria included:

• Baseline review – to ensure biomethane potential and fleet size need was matched on a site by site basis.
• Deployment costs – including capex fleet costs, logistical implications and cost benefit analysis.
• Site suitability – assessing existing fleet age, space on site for biogas upgrade facility, and fleet parking considerations.
• Business sustainability – assessing forecasted carbon benefits.
  Scale and deliverability – number of vehicles, lead in times etc.

Impact

Undertaking the multi-criteria decision making process enabled the client to realise the following outcomes:

• Development of a strategic portfolio review of the biomethane fleet opportunity.
• Identification of priority areas for fleet roll out over a five-year period.
• Identification of potential constraints and barriers to a faster return on investment.