Wal-Mart to Test Alternate Fuels, Hybrids in Push to Raise Mileage

By Daniel P. Bearth, Staff Writer

This story appears in the Feb. 9 print edition of Transport Topics.

Wal-Mart Stores said it will test two types of diesel-electric hybrid trucks and two types of alternatively fueled trucks as part of a continuing effort by the world’s largest retailer to double the fuel efficiency of its 7,200-truck fleet by 2015.

Truck equipment suppliers consider the testing, planned through 2009, as a critical step toward establishing a viable market for hybrid heavy-duty truck technology and new fuels.

“In order to meet our goal of doubling our fleet efficiency, we are taking an active role in the development of these technologies,” Chris Sultemeier, senior vice president of transportation for Wal-Mart Stores in Bentonville, Ark., said in a statement released Feb. 2.

“We look forward to determining if these technologies will help reduce our environmental footprint, are viable for our business and provide a return on investment.”

Wal-Mart said it will test Peterbilt Model 386 trucks with diesel-electric power systems developed by Eaton Corp. in Dallas, Houston, Atlanta, Apple Valley, Calif., and in the Washington, D.C./Baltimore area. The hybrid vehicles are expected to increase fuel mileage by up to 7%.

A spokesman for Peterbilt Motors said the test will help to “validate the concept and refine the final design” of heavy-duty hybrid trucks. The company already makes a medium-duty hybrid model.

“By using the same motor, electronics and battery-powered auxiliary power unit, we are testing a product that, if successful, can come to market very quickly and cost-effectively,” said Bill Jackson, general manager of Peterbilt.

Peterbilt is a unit of Paccar Inc. Sister truck maker Kenworth Truck Co. is developing similar hybrids.

Wal-Mart also said it will test a prototype tractor with a diesel-electric drivetrain system developed by ArvinMeritor Inc. for linehaul use in the Detroit area. The system generates power from lithium-ion batteries to operate up to 48 mph and then switches to a diesel-powered engine to maintain highway speed.

Carsten Reinhardt, president of ArvinMeritor’s Commercial Vehicle Systems, said, “While most hybrid systems today are best suited for start-stop applications, our hybrid drivetrain is specifically designed for linehaul, over-the-road trucks, the largest segment of the commercial vehicle population.”

Wal-Mart officials said the truck is the first of its kind and could in-crease fuel efficiency by up to 25%.

Other vehicles tested will use alternative fuels.

Fifteen trucks at the Wal-Mart distribution center in Buckeye, Ariz., near Phoenix will be converted to run on waste cooking grease from Wal-Mart and Sam’s Club stores. An additional 160 trucks at the Buckeye center will run on a blend of 80% diesel and 20% waste yellow cooking oil. The technology could improve efficiency by 2%, Wal-Mart said.

Environmental Development Group, a Silver City, N.M., company, will provide the fuel to Wal-Mart for the test.

Four Peterbilt Model 386 trucks and a yard tractor at a distribution center in Southern California will operate on liquefied natural gas. The use of LNG is expected to help reduce emissions.

In 2005, Wal-Mart set a goal of increasing the average fuel economy for its fleet to 15 miles per gallon from 6.5 mpg within 10 years. The effort was part of a broad strategy to reduce the company’s environmental footprint by curbing energy use and reducing waste.

Wal-Mart already has achieved a 25% increase in fuel efficiency by purchasing trucks and trailers with more aerodynamic features, including the use of auxiliary power units to reduce fuel use during idling, and fuel-efficient tires. The company also redesigned delivery routes to shorten miles traveled and to keep trailers more fully loaded.

Wal-Mart began working with truck equipment suppliers two years ago to design new vehicles and explore the use of alternative fuels (1-15-07, p. 1). The company operates 4,253 discount and grocery stores in the United States and another 3,355 retail outlets in other countries. Its truck fleet distributes goods from regional distribution centers to its stores and brings goods to its distribution centers from domestic and international vendors.

Jim Conway, vice president of Griffin Industries and a member of the National Biodiesel Board, said Wal-Mart’s use of biodiesel “is a positive step towards lessening our carbon footprint.

“When a company of Wal-Mart’s size makes a commitment to bio-diesel, it can have a huge impact in raising awareness. There are other companies using biodiesel made from waste cooking oil, but none of this size,” he said.

Wal-Mart also is one of the largest purchasers of truckload and less-than-truckload freight-hauling services and, with sales topping $374.5 billion last year, the company carries a lot of influence.

In October, for instance, Wal-Mart issued a series of environmental and product safety guidelines for its global suppliers, requiring the top 200 factories it sources from China to improve their energy efficiency by 20% by 2012.

President Mike Duke, who succeeded Lee Scott as CEO in January, said he wants to “accelerate” efforts to promote sustainability.