Paving the Way: CEVA Logistics' Experts Share Perspectives on Biofuels and the Future of Sustainable Transportation

The logistics industry is at a pivotal juncture, facing the urgent need to reduce its carbon footprint and embrace sustainable practices. Sandra Villeminot, Program Head, Ground & Rail, and Andrey Anufriev, Program Manager, Finished Vehicle Logistics (FVL), of CEVA Logistics share their insights on the pivotal role of biofuels in achieving CEVA's ambitious sustainability goals.  

With a target to reduce its carbon footprint by 30% by 2030 in Ground & Rail network in Europe, CEVA is leveraging the potential of biofuels as a sustainable and readily available alternative to traditional fossil fuels. Through their expertise and forward-thinking strategies, they shed light on the opportunities, challenges and future prospects of biofuels in the logistics industry.

What is liquid biofuel?  

Sandra: Liquid biofuel is an alternative to petroleum-based fossil fuels, derived from biomass. These renewable fuels serve as a viable substitute for fossil fuels, helping to mitigate greenhouse gas emissions. Unlike other renewable energy sources, biomass can be converted directly into liquid fuels—biofuels. The two primary categories of biofuels currently available are: First Generation, produced from food raw materials like B100, and Second Generation, derived from food waste such as HVO100 (Hydrotreated Vegetable Oil). 
 

What opportunities does biofuel present?  

Sandra: Biofuel enables us to begin reducing carbon emissions immediately, thanks to the high operational readiness for transitioning from fossil-fuel-based diesel. As an example CEVA Logistics has converted 14 trucks to run on synthetic biodiesel HVO in northern France and 69 FVL trucks in Italy. In the UK, 210 vehicles utilize over 350,000 liters of HVO per month, accounting for approximately 45% of the total fuel consumption for the UK fleet. HVO decreases carbon emissions by around 90% compared to diesel, making it an excellent interim solution while future technologies are being developed.

What biofuels are used at CEVA?  

Sandra: Currently, CEVA operates trucks utilizing B100 and HVO100 biofuels, primarily in Europe. By the end of 2023, CEVA's Ground & Rail division had 620 vehicles running on alternative fuels, including more than 300 electric vehicles (EVs), 220 biofuel  (HVO100 and B100) vehicles and 100 liquified natural gas and compressed natural gas vehicles. From 2022 to 2023, CEVA tripled the number of alternative fuel vehicles in its fleet.

Is there a difference between biofuel used for aviation and ground transport?  

Sandra: The primary distinction lies in the chemical properties and usage—similar to the difference between diesel and kerosene. While they are derived from the same raw materials, their chemical properties and applications vary. 

To what extent is biofuel a renewable energy?  

Andrey: HVO100 is produced from residues of the food processing industry, such as animal fats or used vegetable oil. Hence, its production is a form of waste recycling, aligning perfectly with environmental protection principles. B100, is a biofuel made from rapeseed or canola, which is a technical crop used in rotation with wheat and other cereals. Therefore, we believe that both these biofuels can be considered renewable sources of energy.

How significantly does using biofuel reduce Greenhouse gas emissions?  

Sandra: The reduction in greenhouse gas emissions depends on the generation of biofuel and the origins of the raw material. For first-generation fuels like B100, a factor linked to land use change is considered in the well-to-wheel CO2e emissions factor, resulting in a reduction of around 50% in CO2e emissions compared to a diesel truck. 

If we consider a second-generation fuel produced from waste, the reduction in well-to-wheel CO2e emissions is higher, reaching around 80%. In both cases, the figures may vary from one batch of biofuel to another, taking into account the mix of raw materials used and their geographical origins. 
 

What is the relationship between the adoption of biofuel-powered vehicles and electric vehicles?  

Sandra: These two technologies are complementary levers in achieving our goal of reducing our carbon footprint. We don't believe there is a one-size-fits-all solution to reach this goal. Depending on the type of transport, geography, local and national regulations, and accessibility to different alternative energy sources, the solution for decarbonization may vary. 

While biofuels present an immediate option to reduce carbon emissions, CEVA is massively investing in EVs as they yield the highest possible CO2 reduction compared to traditional diesel vehicles. CEVA currently has 302 EVs in its fleet, with a target of over 500 for 2024 and 1,450 by 2025. 

What are the challenges of using biofuel?  

Sandra: There are already some tensions in the market that lead to two predictable consequences: limited availability, making it difficult to supply enough biofuel, and price increases resulting from the supply-demand dynamics of the market. 

How do you see the use of biofuel over the next 5-10 years at CEVA?  

Sandra: As biofuels are produced using waste or food raw materials, their production capacity is inherently limited. The aviation sector is working on developing new energy sources like hydrogen thermal engines, but these are likely to remain limited to short-distance aircraft usage. Consequently, the majority of the biofuel capacity currently used by ground operations will probably be absorbed by the air freight sector. 

European countries are progressively rolling out public refueling stations for biofuels, improving accessibility. The distribution of biofuel at public stations initially started in the Nordic countries of Sweden, Norway and Finland and is now present in the UK, Ireland, Benelux, Italy, Spain, and others. France recently opened the possibility to access public biofuel refueling stations. 

Additionally, the EU will start the implementation of the Emissions Trading Scheme (ETS) for ground transportation in 2027 (linked to the Fit for 55 Program, in line with the Paris agreement). This mechanism will gradually reduce the cost differential between sustainable solutions and favor zero-emission options. 

For these reasons, we believe that the share of biofuels in CEVA's Ground & Rail division will remain limited, and zero-emission solutions like electric battery vehicles or hydrogen fuel cells will take the lead in terms of decarbonization.

Andrey: The coming decade will be crucial in confirming this forecast. Zero-emission technologies must make a qualitative leap forward, becoming more cost-competitive while improving their operational performance.