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The hard truths of fleet decarbonisation: navigating sustainable and cost-effective solutions
At a glance
Mining companies have made commitments to decarbonise their operations by 2050, launching a flurry of green and renewable energy projects. It’s great to see positive steps being taken in this space — however, as with many transitions, there are some underlying complexities to consider.A vast amount of emissions from mining operations are fuel-based, primarily from the heavy-duty trucks and equipment that power these industries. Diesel-powered mining vehicles, in particular, account for up to 80% of direct emissions at a mine site, depending on the site geography and the commodity being mined, according to the International Council on Mining and Metals (ICMM). While mining companies are making commendable progress with renewable energy initiatives, addressing fuel-intensive fleets remains a crucial next step on the path to meaningful decarbonisation.
The debate surrounding fleet decarbonisation often centres on three main solutions: electric vehicles (EVs), hydrogen-powered fleets and biofuels. While all options promise to reduce emissions, the real question remains: are these solutions truly feasible for the mining sector, and is electrification the only way forward?
Mining companies have made commitments to decarbonise their operations by 2050, launching a flurry of green and renewable energy projects. It’s great to see positive steps being taken in this space — however, as with many transitions, there are some underlying complexities to consider.
The case for renewable diesel
Renewable diesel has quietly gained traction with companies like Rio Tinto already actively exploring its potential. Chemically identical to conventional diesel; this fuel is derived from renewable sources like waste oils or biomass. What makes renewable diesel particularly appealing is that it doesn’t require modifications to the fleet's existing engines — it's the same as normal diesel, just produced differently.
One key advantage of renewable diesel is that it offers a relatively net-zero carbon footprint, meaning it significantly reduces emissions compared to traditional diesel. It is currently significantly more expensive, but if renewable diesel were priced comparably to regular diesel, there would be little incentive for companies to shift to electrification or hydrogen — especially given the higher costs and longer lead times associated with those alternatives.
One key advantage of renewable diesel is that it offers a relatively net-zero carbon footprint, meaning it significantly reduces emissions compared to traditional diesel. It is currently significantly more expensive, but if renewable diesel were priced comparably to regular diesel, there would be little incentive for companies to shift to electrification or hydrogen — especially given the higher costs and longer lead times associated with those alternatives.
The hydrogen economy
Once considered a front-runner in the race to decarbonise, hydrogen continues to hold promise, with many advocates highlighting its potential to transform heavy industry. However, the high costs associated with its production, storage, and supporting infrastructure have slowed widespread adoption.
While hydrogen-powered vehicles are in operation, the infrastructure needed to support broader use — particularly for fleet operators — remains limited and costly. If hydrogen were currently a more viable option, we might see a stronger shift from diesel to hydrogen among heavy-duty truck fleets, rather than a growing preference for electrification. For now, however, economic and logistical challenges have made large-scale hydrogen deployment more difficult, delaying its role in the transition.
The electrification dilemma
While electric vehicles are often seen as a straightforward path to decarbonisation, scaling up electrification — particularly for heavy-duty fleets — presents some complex challenges. It’s not just about the vehicles themselves; it also requires a robust ecosystem of charging infrastructure, maintenance facilities, and battery support programs. Much of this infrastructure is still emerging, and building it out will take time, coordination, and significant investment.
Another important consideration is grid capacity. If the electricity used to charge vehicles is still largely generated from fossil fuels, the emissions reductions may be limited. To unlock the full potential of electrification, the transition must be supported by a cleaner, greener energy mix — drawing from sources like wind and solar.
In other words, the benefits of electrification are fully realised only when the electricity used to power vehicles comes from renewable sources. Without access to clean energy, there's a risk that emissions are simply relocated — from vehicle tailpipes to power plants — rather than meaningfully reduced.
A holistic approach to decarbonisation
So, what’s the key takeaway? Transitioning to low-emissions mining fleets requires a holistic and flexible approach. Instead of focusing on a single decarbonisation pathway, companies are better positioned by exploring a combination of solutions, adapted to the specific needs, contexts, and economic conditions of their operations, all with the common aim of achieving meaningful and lasting emissions reductions.
The future of fleet decarbonisation is likely to involve more than a one-size-fits-all technology shift. It’s about building a connected, renewable energy ecosystem – where multiple technologies can work together to drive meaningful change. Embracing this collaborative mindset will be important in progressing toward the ambitious sustainability goals the industry is setting.
By exploring a range of options, from renewable diesel to electrification, and investing in the right infrastructure and partnerships, mining companies can move forward in a practical, flexible, and cost-effective way.
Engaging with experienced partners like GHD can help mining companies navigate the complexity and identify the right mix of technologies, infrastructure, and strategies to move forward. With the right guidance and long-term thinking, fleet decarbonisation can become both a practical and cost-effective part of the broader sustainability journey.
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