East & Partners

Electric Vehicles Added to BHP Fleet

Australia
Uncategorized
Equipment Finance

(9 July 2018 – Australia) Two electric vehicles (EVs) have been added to BHP’s fleet of 240 light truck utility vehicles at Olympic Dam mine in South Australia on a trial basis before making a decision on launching more EVs across other BHP mines and operations by the end of the financial year. 

During the trial BHP is closely monitoring feedback data and systems capturing performance including power supply, maintenance requirements, charging time and corrosion resistance underground.

The deployment of these EVs is part of BHP’s broader initiative to achieve a 50 percent reduction in the number of BHP employees with potential exposure to particulate matter (which includes exposure to diesel fumes). The ‘ute’ is modelled on a four wheel drive Land Cruiser powered by a Lithium-Ion battery. The commencement of broader use of EVs at Olympic Dam is expected to reduce emissions, exposure and costs. BHP has worked with Adelaide-based company Voltra. Volta states their ‘eCruiser’ EV power unit and engine is simple compared to a standard diesel engine, which ideally will reduce maintenance costs significantly. Volta and BHP have won the race ahead of Tesla by launching the vehicle at Olympic Dam with Tesla CEO Elon Musk releasing details of an upcoming Tesla light truck utility vehicle shortly after BHP’s announcement.

Rio Tinto is currently the world’s largest autonomous truck operator and has this week received the first delivery of iron ore by an autonomous train, now taking the mantle as the world’s ‘largest robot’ in West Australia’s Pilbara coast. The autonomous train, consisting of three locomotives and carrying around 28,000 tonnes of iron ore, travelled over 280 kilometres from Rio Tinto’s mining operations in Tom Price to Cape Lambert Port. According to CBA’s Equip Issue 7, new technologies have the potential to drive down fuel costs, lower emissions, improve productivity through better asset utilisation and more efficient labour use, and even help companies create stronger customer relationships as trusted advisers, not simply service provide. CBA’s Latest Equip highlights seven key trends to watch in the transport and logistics sector including further cost savings from EVs.

In other EV news China continues to dominate the electric bus market, now targeting growth in the US. BYD, a Chinese electric vehicle manufacturer backed by Warren Buffett, has formed a joint venture with San Francisco investor Generate Capital that will lease its buses to cities, schools and corporations in the U.S. China accounts for 99 percent of the 380,000 electric buses on the road at the end of 2017 globally according to Bloomberg New Energy Finance. Only 1.6% of all city buses in Europe are electric. In the US, it’s only about 0.5%. However, the global e-bus market is changing. Transport is responsible for around 23% of energy-related carbon dioxide emissions globally. Electric vehicles – which have zero emissions – are widely seen to be the solution. In addition, falling battery prices are making electric buses more economically attractive. As the UK pushes to meet its target of ending conventional car sales by 2040, newly constructed home will be required to install charge points for EVs.

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