Zero emission vehicles are an important part of public sector organisations’ strategies to achieve net zero. But, while these vehicles have many benefits, Jeremy Hubbard, senior motor risk consultant at Aon Global Risk Consulting, says it’s important to understand and manage the risks.
With transport the largest emitter of greenhouse gases across UK local authorities, accounting for 28% of all UK emissions1, switching to zero emission vehicles is a priority across the public sector. But, as these vehicles use different technologies to conventional petrol and diesel vehicles, it’s important to be aware of the risks.
Already, many public sector organisations have made, or are working on, a shift to zero emission vehicles across their fleets. For cars and smaller vehicles, going electric is the more common option. As well as helping to cut pollution and carbon emissions, electric cars are more cost-efficient to run than petrol or diesel fuelled vehicles as a result of factors such as cheaper fuel costs and exemptions from congestion and clean air zone charges.
For larger vehicles, hydrogen is a more appropriate switch. With a bus or a truck, the weight of an electric battery required to power it means going electric is not viable. In addition, as hydrogen vehicles are fuelled in the same way as petrol and diesel ones, there are no issues around downtime or needing extra space for recharging.
As a result, the first hydrogen-fuelled ambulance was launched in London in 2021; Transport for London introduced the first fleet of double-decker hydrogen buses in 2021; and Aberdeen City Council was the first to add a hydrogen waste truck to its fleet in 2022.
Zero-emission risks
Achieving net zero means that the switch to zero emission vehicles is inevitable but, to ensure a smooth transition, organisations must be aware of the risks.
These are some of the main risks these vehicles present:
Fire
Fire is a significant risk for both electric and hydrogen vehicles. With electric vehicles, there is a risk of thermal runaway if a fire starts in the battery. This can see the cells igniting one another, creating higher temperatures and a fire that can take days to extinguish.
However, although there have been some headline-grabbing news stories about fires caused by electric vehicles, there’s no concrete evidence that they’re a higher fire risk than conventional vehicles.
The nature of hydrogen also means these vehicles pose a fire risk. Hydrogen is highly flammable and self-ignition is common, leading to fires and explosion. Alongside this, it’s colourless and odourless so leaks can go unnoticed.
Ensuring containers are correctly sealed; having detection technology in place; and removing any sources of ignition can minimise the risks associated with leaks. However, it can often be the public, and employee, perception of hydrogen as highly explosive that causes a stumbling block.
While design features such as thick-walled fuel tanks, sensors and relief devices have addressed this risk, public awareness campaigns can help to calm fears. For example, South Derbyshire District developed its Hydrogen Innovation Project to reassure the public about the safety of hydrogen as a fuel ahead of retrofitting its refuse collection vehicles2.
Range and refuelling
Range anxiety is an issue for electric vehicles. Ranges are increasing, with averages between 200 and 300 miles, but the lack of charging infrastructure is the real challenge.
The government is taking steps to address this, committing £1.6bn to create 300,000 public chargers by 20303 and introducing regulations to make charging an electric vehicle easier and quicker.
One solution for fleet managers is to install charging points on-site. Where this happens it’s necessary to conduct a fire risk assessment and install automatic fire detection technologies. Sprinklers could also be installed and chargers must be regularly maintained and serviced.
Refuelling is less of an issue for hydrogen vehicles. Although there are very few public hydrogen filling stations in the UK, an organisation could use a mobile refuelling point or build their own refuelling station. Having a refuelling station onsite could also open up the facility to local businesses, helping to cut emissions in the area.
A different driving experience
Electric vehicles may look exactly the same as those with combustion engines but they offer a very different driving experience. Thanks to instant torque, they’re more powerful and responsive. This can mean faster acceleration but also an increased risk of speeding.
Drivers may also need to rethink how they use an electric vehicle. Journeys should be planned to ensure the battery can be topped up, especially while charging infrastructure gets up to speed. Adapting driving habits can also help to extend battery range and life.
Electric familiarisation training can be offered to new drivers of electric vehicles to ensure they are familiar with driving and using these vehicles. Coaching focuses on improving drivers’ knowledge and competence when driving an electric vehicle, covering areas such as vehicle expectations, charging and how to adapt driving style to get the best results.
Courses, which can be run virtually or in-person, are also designed to meet an organisation’s duty of care obligations.
Repair costs and write-offs
With a battery rather than all the moving parts required for a combustion engine, electric vehicles are easier to repair but there are several factors that mean repairs tend to be more expensive than for petrol and diesel vehicles.
Electric vehicles are a relatively new addition to our roads and, with only around 900,000 fully electric vehicles out there4, numbers are still low. As a result, there is a skills shortage, both in terms of garages that can repair these vehicles but also the mechanics that can work on them.
The batteries create additional work and costs too. A garage may need to discharge any energy in the battery before working on a vehicle. Additionally, due to the fire risk associated with batteries, even the smallest amount of damage can lead to the vehicle being declared a total loss.
These vehicles also tend to have all the latest safety technology, making parts expensive. And, due to numbers, parts can also take longer to get hold of, so these vehicles will be off the road for longer, pushing up the cost of a repair.
Insurance – the shock of the new
Insurance is another important consideration when making the shift to zero emission vehicles. Cover is available but the combination of new technology, higher repair costs and a greater risk of total loss, means insurers are still cautious about insuring these vehicles.
As a result, insurers will usually apply more stringent terms when offering cover. This means that premiums are typically higher than for more conventional vehicles.
But this is expected to change. As well as gathering more experience on these risks, advances in technology, especially around repairing batteries, could help to reduce costs and the risk of a write-off.
Having more zero emission vehicles on the UK’s roads will also make a difference. Parts will be easier to source and more garages and mechanics will have the skills to work on these vehicles. Similarly, as the UK’s charging infrastructure goes live, the concept of range anxiety will cease to be such an issue.
Ultimately though, the need to move to zero emission vehicles is far too pressing not to address these risks. Government and manufacturers have an interest in ensuring that electric and hydrogen powered vehicles are a key part of the future.
More information
For more information about the benefits and risks of zero emission vehicles and to discuss your insurance requirements, speak to your Aon account manager or contact Jeremy Hubbard at [email protected].
- Climate change insights, business and transport, UK - Office for National Statistics (ons.gov.uk)
- South Derbyshire's Hydrogen Innovation Project | Local Government Association
- Tenfold expansion in chargepoints by 2030 as government drives EV revolution - GOV.UK (www.gov.uk)
- EV market statistics 2023 - Zapmap (zap-map.com)
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