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Column: Should companies pay for EV chargers for corporate fleets?

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By taking a thoughtful approach to employees’ individual situations, fleet managers can design a take-home EV program that fits their drivers’ needs and benefits the company’s bottom line in the long run. Photo via Getty Images

As electric vehicles continue to rise in popularity among corporate fleets, the question of how to best accommodate charging needs for fleet drivers, especially those taking their vehicles home, is becoming increasingly important.

Charging EV fleet vehicles at home can be an excellent strategy to save employees time and cut operational costs. However, many companies hesitate in their take-home EV implementation, mistakenly believing that high-cost level 2 home chargers are a necessity. This misconception can stall the transition to an efficient, cost-effective fleet charging solution.

By taking a thoughtful approach to employees’ individual situations, fleet managers can design a take-home EV program that fits their drivers’ needs and benefits the company’s bottom line in the long run. Here are some essential points to consider:

The viability of level 1 charging for low-mileage drivers

For many fleet drivers, especially those covering less than 10,000 miles annually, the standard level 1 charger that plugs into a 120v (standard) wall outlet and comes with their EV is perfectly adequate. This solution involves no additional hardware costs, mitigates issues when employees leave the company, and reduces corporate liability concerns. The primary advantage of relying on level 1 charging is its simplicity and cost-effectiveness, as it requires no extra investment in charging infrastructure. By leveraging the charging cable provided with the vehicle, companies can minimize their financial outlay while still supporting their employees' charging needs effectively.

Opting for non-networked level 2 chargers for high-mileage drivers

For higher mileage drivers with faster charging needs, a non-networked level 2 charger represents a compelling option. In this scenario, the employee pays for the unit and the installation and is then reimbursed by the company. This approach has several benefits:

  • Tax Rebates and Incentives. Employees may qualify for various tax writeoffs and incentives that are not available to companies, making the installation of a level 2 charger more affordable.
  • Ownership and Choice. Employees select and own the charging port, choose the contractor and pay for installation, which limits corporate liability and cuts costs.
  • Home Value Enhancement. Installing a level 2 charger can increase the value of the employee's home, providing them with an additional benefit and easy access to charging.
  • Accurate Reimbursement Still Possible. Modern electric vehicles record charging data, eliminating the need to get this information from a smart charger. Software like ReimburseEV can connect the dots and calculate accurate usage, costs and reimbursement.

This approach offers a cost-effective, lower-liability solution that benefits both the company and the employee, making it an attractive option for higher-mileage drivers.

The drawbacks of company-owned and networked chargers

Installing company-owned chargers, especially networked ones, is arguably the least favorable option for several reasons:

  1. Increased costs and liability: The installation and maintenance of networked chargers significantly increases costs. Moreover, owning the charging infrastructure introduces liability concerns, especially regarding data security.
  2. Connectivity and compatibility Issues: Networked chargers can suffer from connectivity issues, leading to inaccurate charging data and other operating and compliance problems.
  3. Risk of fraud: Many smart chargers do not know which vehicle is plugged in. Thus, they also risk being used by non-fleet vehicles, further complicating cost and energy management.
  4. Brand lock-in: A number of networked chargers are tied to specific OEM brands, limiting the flexibility in vehicle selection and potentially locking the company into a less dynamic fleet vehicle mix.

The drawbacks associated with company-owned and networked chargers underline the importance of evaluating charging needs carefully and opting for solutions that offer flexibility, reduce liability, and control costs.

Decision tree for fleet managers

Fleet managers should consider a decision tree approach to determine the most suitable charging solution for their needs. This decision-making process involves assessing the annual mileage of fleet drivers, access to charging, the benefits of tax incentives, and considering the long-term implications of charger ownership and ongoing liabilities. By adopting a thoughtful, structured approach to at-home charging decision-making, fleet managers can identify the most cost-effective and efficient charging solutions that align with their company's operational goals, culture, and drivers' needs.

Transitioning to an EV fleet and providing robust at-home charging solutions for your EV fleet drivers need not be a big operational bottleneck requiring huge investments in home charging infrastructure and installation costs. By understanding the specific operational demands of your EV fleet vehicles and the unique circumstances of your EV fleet drivers, companies can implement effective, efficient at-home charging solutions that save time, reduce costs, and minimize liability, all while supporting employees' transition to electric mobility.

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David Lewis is the founder and CEO of MoveEV, an AI-powered EV transition company that helps organizations convert fleet and employee-owned gas vehicles to electric by accurately reimbursing for charging electric vehicles at home.

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This Earth Week, let's consider the benefits of home charging for electric vehicles. Photo via Getty Images

Expert: 5 ways residential charging enhances the environmental benefits of EVs

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Electric vehicles are already considered as an environmentally conscientious alternative to traditional internal combustion engine vehicles, thanks to their zero tailpipe emissions. However, the environmental benefits of EVs can be further enhanced by implementing a home-base charging routine.

This is important not only for individuals looking to cut their household’s carbon footprint, but also for corporations that operate EV fleets and are looking for additional cost and environmental savings as part of their larger sustainability initiatives. What makes home charging the most eco-conscious option?

1. Increased use of renewable energy

More than 4 million homes in the United States support rooftop solar panels that provide renewable energy back to the property or back to the local grid. When EV owners install solar panels or other renewable energy systems at their homes, they can charge their vehicles using this clean energy, effectively reducing the carbon footprint associated with their EV use to nearly zero. This direct use of renewables circumvents the inefficiencies and emissions associated with the broader energy grid which, depending on the location, may still rely on fossil fuels to a significant extent. This synergy between EVs and clean local energy production is exemplified by Tesla’s solar roof program, which promotes the adoption of clean home-based energy production as part of the holistic EV ownership experience offered through their app.

2. Optimizing charging times for lower emissions

Home charging allows for more flexible and strategic charging schedules. EV owners can often take advantage of off-peak electricity rates and lower carbon intensity periods by charging their vehicles overnight or when renewable energy production (such as wind or solar power) is at its peak. This not only leads to cost savings for the consumer, but also contributes to a balanced demand on the electric grid, reducing the need for high-carbon emergency power sources that are sometimes activated during peak demand times. Apps like WhenToPlugIn use a carbon intensity forecasting tool to help consumers pick the best times to charge.

3. Reducing dependency on public charging infrastructure

Public charging stations are crucial for long-distance EV travel. For everyday use, the current public charging landscape is trailing the demand curve. The good news is that the majority of EV drivers can rely almost solely on home charging. This practice ensures public charging spots remain open for those who, due to circumstances such as residing in multi-unit dwellings without charging facilities, cannot charge at home. Consequently, this accessibility supports wider adoption of EVs, leading to a more substantial reduction in overall emissions.

4. Avoiding unnecessary travel to public charging stations

The average driver has to detour 2 miles to refill their gas tank. For electric vehicles, finding an available public charger can add many more miles to a trip. Home charging ensures that EVs can start each day with a “full tank” — which, with new EVs, means hundreds of miles of range before needing to plug in again. This reduction in driven miles not only saves time but also decreases the energy consumption and emissions associated with traveling to and from charging stations unnecessarily. By charging at home, EV owners can ensure their vehicles are ready to go without extra trips, further cutting down on the vehicle's overall environmental impact.

5. Enhancing battery longevity

Charging at home typically involves slower charging speeds compared to rapid chargers found in public stations. These slower, more controlled charging rates are less taxing on an EV's battery, contributing to longer battery life and better overall efficiency. Longer battery lifespans mean fewer replacements over the vehicle's life, significantly reducing the environmental impact associated with battery production and disposal. This not only has clear environmental benefits but also economic ones for the vehicle owner.

Conclusion

The environmental benefits of electric vehicles are well-documented, but by incorporating home charging, these benefits are amplified significantly. Through the increased use of renewable energy, optimizing charging times to utilize green power, and reducing reliance on public charging infrastructure, EV owners can further reduce their environmental footprint. As technology advances and the energy grid becomes cleaner, the potential for home charging to contribute to a more sustainable future only grows, reinforcing the role of electric vehicles in the transition to greener transportation options.

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Kate L. Harrison is the co-founder and head of marketing at MoveEV, an AI-backed EV transition company that helps organizations convert fleet and employee-owned gas vehicles to electric, and reimburse for charging at home.

Here's a closer look at why Houston should be pushing for a more rapid transition to EVs. Photo via Getty Images

5 reasons Houston should prioritize electric vehicle adoption in 2024

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As urban populations increase and more vehicles hit the roads across the United States, the quality of the air is compromised, directly impacting health, environment, and quality of life ― especially for children, minorities, and other vulnerable populations. A 2023 study by Site Selection Group placed Houston at the vanguard of this trend, projecting the metro area to grow nearly 10 percent by 2028, eclipsing 8 million residents.

According to Evolve Houston, a nonprofit working to accelerate EV adoption by bringing together local public and private organizations, residents, and government, the transportation sector emits 47 percent of all greenhouse gas emissions in the Houston area.

In this context, electric vehicles offer a practical solution to mitigate the challenges posed by tailpipe emissions. Their adoption in urban settings has the potential to significantly improve air quality and enhance public health. It’s no wonder the upcoming Houston Auto Show will feature a dedicated EV Pavilion.

Here's a closer look at why Houston should be pushing for a more rapid transition to EVs:

  1. Children’s development is at stake: Early childhood is a critical period for brain development. However, toxic air pollutants can significantly inhibit this growth during these formative years. The consequences include impairing children’s cognitive capabilities in reading and math, akin to missing an entire month of elementary school.
  2. EVs counteract historical racial inequalities: Beyond being an environmental challenge, air pollution is a glaring racial and social justice issue. Areas with fewer White residents suffer almost triple the nitrogen dioxide levels compared to predominantly White zones, as highlighted by the National Academy of Sciences. Historically marginalized communities, often near major traffic corridors, endure heightened pollution exposure. Transitioning to EVs can help address these deeply ingrained environmental inequities.
  3. The health benefits are monumental: A brighter future awaits if EVs become mainstream. According to the American Lung Association, if all new vehicles sold by 2035 are zero-emission, the U.S. could see up to 89,300 fewer premature deaths by 2050. Additionally, asthma attacks might decline by 2 million, saving 10.7 million workdays and resulting in an incredible $978 billion in public health savings.
  4. Global success stories prove the benefits: The impact of mass EV adoption has already been demonstrated outside the U.S. For instance, Norway has seen a notable reduction in dangerous particle emissions since 87 percent of its new car sales are now fully electric. Likewise, California’s adoption of electric vehicles correlated with a 3.2% decrease in asthma-related ER visits between 2013 and 2019.
  5. Cities have the power and means to lead the way: Many global cities are trailblazers in the electric transition. New York City, with more than 4,000 government-owned EVs, is a prime example. Moreover, by electrifying their take-home fleets, cities can set a precedent for their communities. Seeing neighbors drive electric vehicles daily serves as a powerful endorsement, motivating nearby residents to make the switch. Incentives like public charging stations, free parking for EVs, rebates for home charger installations, reimbursing for charging at home, and reduced tolls, further bolster this movement.

Houstonians stand at a pivotal juncture. The choices made today concerning transportation will profoundly influence the health and well-being of residents tomorrow. The shift to electric vehicles is more than just an eco-friendly choice; it's a commitment to a brighter, cleaner future. By leading with action and vision, cities can create a legacy that upcoming generations will appreciate and thrive in.

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Kate L. Harrison is the co-founder and head of marketing at MoveEV, an AI-backed EV transition company that helps organizations convert fleet and employee-owned gas vehicles to electric, and reimburse for charging at home.

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Houston-based co. closes acquisition of 50 percent stake in Texas cogeneration facility

M&A Moves

Fengate Asset Management announced the financial close on the acquisition of a 50 percent interest in Freeport Power Limited, which owns a 440-megawatt cogeneration facility in Freeport, Texas.

FPL is located near the Freeport Energy Center, which is a 260-megawatt cogeneration facility that is currently owned and managed by Fengate. The two facilities work to provide cost-effective power and steam to Dow’s Freeport site, which is the largest integrated chemical manufacturing complex in the Western Hemisphere.

“We are thrilled to have closed this acquisition, which aligns with our strategy of acquiring behind-the-meter cogeneration projects with strong industrial partners like Dow,” Greg Calhoun, managing director of Infrastructure Investments at Fengate, says in a news release.

Fengate was able to acquire interest in FPL under a strategic operating partnership with asset manager Ironclad Energy. The partnership with Ironclad was established in 2022 to acquire and operate cogeneration, district energy and other power generation projects throughout North America.

“This is our second acquisition with Fengate, and we look forward to continuing our partnership to optimize and expand the portfolio,” Christopher Fanella, president and CFO of Ironclad Energy, says in the release.

Fengate opened its first U.S. office in 2017 in Houston.

“Combined heat and power projects like FPL will continue to play an important role in the U.S. power industry – especially for hard-to-abate industrial sectors – to ensure reliability, efficiency and affordability,” adds in the release.

Houston energy leader on why the future of fuels is more than electric vehicles

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Gasoline, diesel, bunker fuel, and jet fuel. Four liquid hydrocarbons that have been powering transportation for the last 100-plus years.

Gas stations, truck stops, ports, and airport fuel terminals have been built up over the last century to make transportation easy and reliable.

These conventional fuels release Greenhouse Gases (GHG) when they are used, and governments all over the world are working on plans to shift towards cleaner fuels in an effort to lower emissions and minimize the effects of climate change.

For passenger cars, it’s clear that electricity will be the cleaner fuel type, with most countries adopting electric vehicles (EVs), and in some cases, providing their citizens with incentives to make the switch.

While many articles have been written about EVs and the benefits that come along with them, they fail to look at the transportation system as a whole.

Trucks, cargo ships, and airplanes are modes of transportation that are used every day, but they don’t often get the spotlight like EVs do.

For governments to be effective in curbing transportation-related greenhouse emissions, they must consider all forms of transportation and cleaner fuel options for them as well.

43 percent of GHG emissions comes from these modes of transportation. Therefore, using electricity to reduce GHG emissions in light duty vehicles only accounts for part of the total transportation emissions equation.

The path to cleaner fuels for these transportation modes has its challenges.

According to Ed Emmett, Fellow in Energy and Transportation Policy at the Baker Institute Center for Energy Studies (CES);

  • "Airplanes cannot be realistically powered by electricity, at least not currently, and handle the same requisite freight and passenger loads"
  • "The long-haul trucking industry [...] pushed back against electrification as being impractical due to the size and weight of batteries, their limited range, and the cost of adoption"
  • "Shipowners have expressed reluctance to scrap existing bunker fueled ships for newer, more expensive ships, especially when other fueling options, e.g. biofuels and hydrocarbon derivatives-for fleets can be made available"

Finding low-cost, reliable, and environmentally sound fuels for the various segments of transportation is complex. As Emmett suggests in his latest article;

"Hovering over the transition to other fuels for almost every transportation mode is the question of dependability of supply. For the trucking industry, the truck stop industry must be able to adapt to new fuel requirements. For ocean shipping, ports must be able to meet the fuel needs of new ships. Airlines, air cargo carriers and airports need to be on the same page when it comes to aviation fuels. In other words, the adoption equation in transitions in transportation is not only a function of the availability and cost of the new technology but also a function of the cost of the full supply chain needed to support fuel production and delivery to the point of use. Going forward, the transportation industry is facing a dilemma: How are environmental concerns addressed while simultaneously maintaining operational efficiency and avoiding unnecessary upward cost shifts for moving goods and people? In answering that question, for the first time in history, modes of transportation may end up going in multiple different directions when it comes to the fuels each mode ultimately chooses."

This is why many forecasts predict that hydrocarbon demand will continue through 2050, despite ambitious aspirations of achieving net zero emissions by that year. The McKinsey "slow evolution" scenario has global liquid hydrocarbon demand in 2050 at 92mmb/d versus 103 mmb/d in 2023. With their "continued momentum" scenario, oil demand is 75 mmb/d. Proportionally, global oil demand related to GHG emissions from transportation would decline 11-27 percent. The global uptake of EVs is the primary driver of uncertainty around future oil demand. In all the McKinsey scenarios, the share of EVs in passenger cars sales is expected to be above 90 percent by 2050.

The Good News

Despite the relatively slow progress expected for reducing GHG emissions in the global transportation sector, there are solutions emerging that lower the carbon footprint tied to traditional petroleum-based fuels. Emmett highlights some of the methods under study, noting that "sustainable biofuels sourced from cooking oils, animal fats, and agriculture products, as well as hydrogen, methanol, ammonia, and various e-fuels are among the options being tested. Some ocean carriers are already ordering ships powered by liquified natural gas, bio-e-methanol, bio/e-methane, ammonia, and hydrogen. Airlines are already using sustainable aviation fuel as a supplement to basic aviation fuel. Railroads are testing hydrogen locomotives. The trucking industry is decarbonizing local delivery by using vehicles powered by electricity, compressed natural gas, and sustainable diesel. Long-haul trucking companies are considering sustainable diesel as a drop-in fuel for existing equipment, and fuel suppliers are researching new engines fueled by hydrogen and other alternative fuels."

Most of these options will require a combination of increased government incentives, along with advancements in technology and cost reductions.

McKinsey's "sustainable transformation" scenario, which considers potential shifts in government regulations as well as advancements in technology and cost, suggests there is moderate growth in alternative fuels alongside growth in EVs. Mckinsey projects;

  • EV demand could grow to over 90 percent of total passenger car sales by 2050
  • EVs to make up around 80 percent of commercial truck sales by 2050
  • In aviation, low carbon fuels such as biofuels, synfuels, hydrogen and electricity are projected to grow to 49 percent by 2050.

According to McKinsey, the combination of these alternatives along with demand changes in power and chemicals could reduce global oil demand to 60 mmb/d in 2050. The shift to cleaner fuels, for modes of transportation other than EVs, is underway but the progress and adoption will take decades to achieve according to McKinsey’s forecasts.

Looking more closely at EVs, the story may not be as dire globally as it seems to be in the West. While the U.S. appears to be losing momentum on electric vehicle adoption, China is roaring ahead. New electric car registrations in China reached 8.1 million in 2023, increasing by 35 percent relative to 2022. McKinsey’s forecasts have underestimated global EV sales in the past, with China surpassing their estimates, while the U.S. lags behind. It’s clear that China is the winner in EV adoption; could they also lead the way to adopt cleaner fuels for other modes of transport? That is something governments and the transportation industry will be watching in the years ahead.

Conclusion

While we are not on a trajectory to meet the aspirations to reduce global GHG emissions in the transportation sector, there are emerging solutions that could be adopted should governments around the world decide to put in place the incentives to get there. Moving forward, the future of transportation fuels will be shaped by a mix of innovation, government policies, and what consumers want. The focus will be on ensuring that the transportation sector remains reliable, secure, and economically robust, while also reducing GHG emissions. But, decarbonizing the transportation sector is much more than just EV's – it's a broader effort that will require continued global progress in each of the multiple transportation segments.

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Scott Nyquist is a senior advisor at McKinsey & Company and vice chairman, Houston Energy Transition Initiative of the Greater Houston Partnership. The views expressed herein are Nyquist's own and not those of McKinsey & Company or of the Greater Houston Partnership. This article originally ran on LinkedIn on October 9, 2024.

Houston company secures $10M contract to deliver subsea well decommissioning solution

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Houston energy services provider Expro was awarded a contract valued at over $10 million for the provision of a well decommissioning solution.

The solution will combine subsea safety systems and surface processing design that can enable safe entry to the well and management of well fluids.

“The contract reinforces our reputation as the leading provider of subsea safety systems and surface well test equipment, including within the P&A sector,” Iain Farley, Expro’s regional vice president for Europe and Sub-Saharan Africa, says in a news release. "It demonstrates our commitment to delivering best-in-class equipment, allied with the highest standards of safety and service quality that Expro is renowned for.”

Expro will provide from its global support hub in Aberdeen, a surface fluid management package and a market-leading 7-3/8 inch large-bore subsea test tree assembly (SSTTA). This will include surface tree and controls that can provide dual barrier and disconnect capability to facilitate re-entry into the subsea wells.

Expro has been supplying its subsea safety systems and well test equipment to the construction of many of the 52 wells now being plugged and abandoned.

“Having been involved in the development phase for many of these fields, we have gained a life of well experience that will be invaluable for this P&A campaign,” Farley adds. “Our expertise and know-how will help deliver key technical and commercial benefits for the client across the project.”

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