Jim Thompson

Email Jim at jim.thompson@ipulpmedia.com

I think the answer to the title question would have been "certainly" a couple of years ago. It does not seem to be so solid now.

And, of course, it depends on what types of electric vehicles we are talking about. Electric fork or clamp trucks seem to be a certainty. Over the road vehicles (automobiles, trucks) may need a qualifier based on use.

Hydrogen power has promise--but can it be produced economically and what will the vehicles cost?

Eliminating the gasoline or diesel engine in the next decade or so appears to be highly unlikely. Economics and technology are just not improving fast enough for this. It is not just the economics and technology on board the vehicle, either. The infrastructure to service alternative fuels is just not expanding rapidly enough.

So, as a fleet purchaser, what do you do? You don't want to be left with a convoy of obsolete vehicles which can no longer be services or find an energy source (gasoline, diesel, or electric). You'll have to do a serious financial analysis with variables of length of service, salvage value and so forth. Considering taxes, it may make the most sense to lease and lay off the viability bet on someone else.

Of course, your corporate public relations folks may have the most to say about this. If your CEO has made some significant ESG promises, all calculations may be out the window.

Then there is safety. In an all-electric world, especially in a manufacturing setting, there may be new safety exposures we will need to deal with, if batteries become more ubiquitous. Can you spell "lithium-ion battery runaway?" Anytime any technology becomes concentrated, potential safety hazards rise.

It is a brave new world, and it is by no means settled. We have much to learn as we make decisions about electric vehicles.

Be safe and we will talk next week.

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