Electricity, Oil and Water

A few (of many) fueling highlights from the NACS Show.

Electricity, Oil and Water

November 2021   minute read

By: Keith Reid

A fuel marketer who dismisses the NACS Show as being purely retail would be surprised at how many solutions cross over into the wholesale fueling side of operations, particularly on the technology front.

Innovative companies are always introducing new solutions on the expo, but they are not often linked to a new trend. Every few years, however, major trends pop up, driven by regulation or some other major policy initiative. That was the case at this year’s NACS Show, where several significant trends rose above the usual mix.

EV Solutions

Electric vehicles were hot this year, driven by Biden Administration policies and various international and local government initiatives to pursue the most aggressive carbon reduction policies.

EVs received notable attention in the NACS fuel-related sessions, including a three-part series that covered electric vehicle charging deployment:

  • “EV 101: What Is EV/EV Charging and Why It’s Important”
  • “EV 201: How Do I Do EV?”
  • “EV 301: The Economics of EV Charging”

These sessions featured speakers from the charging industry, nonprofits such as the Center for Sustainable Energy and the Alliance for Transportation Electrification, and industry analysts from both the retail and EV sectors.

EV 101 laid the groundwork by discussing the anticipated pace of EV market evolution. It outlined the role the convenience industry can play and the need to prepare to participate. EV 201 continued the retailer focus and looked at issues related to compatibility and regulations and the various options retailers can pursue to offer this service. EV 301 examined some of the fundamental challenges that currently exist with earning a profit through a charging service, most specifically the utility demand charge. This charge is based upon the peak electricity demand at a site during a given billing period (such as multiple vehicles fast charging at the same time, on occasion), and can be substantial. Faster charging solutions become unviable, especially when the total utilization (consumption) is too low to make up the difference.

There was no shortage of charging and other EV-related solutions on the expo. At least 14 companies provided at least one offering in the category. Several of the more notable solution developers were Blink Charging, which offers a full range of deployment configurations and charging speeds, and FreeWire, which offers “ultrafast” charging with battery storage to help level out demand charges and other utility fees.

One particularly interesting solution fit in well with the advice given to retailers in multiple educational sessions: Be strategic in how you add charging within the footprint of your retail sites. The fuel and store price analytics company Kalibrate now provides retailers with an EV adopter demographics overlay for their business areas. This is linked to available charger locations and identifies consumer charging patterns to help retailers see areas where the need to add a charging station might be critical, or not.

Demand Destruction

The session “Disappearing Gallons: Cause & Effect,” sponsored by Fuels Market News, a NACS Media property, looked at the anticipated loss in gallons through EV adoption and other decarbonization factors expected to reduce demand for traditional gasoline and diesel fuels.

John Eichberger, director of the Fuels Institute, and this author conducted an open, interactive and casual discussion of the factors driving these initiatives, the timeframe (or likelihood) of moving completely to a single solution such as electrification and the considerations that fuel retailer marketers need to begin making to ensure that they continue to serve their customers in a profitable manner.

While the complete conversion to EV charging from internal combustion engines is being pushed in some circles, a variety of factors make such a complete conversion a long-term process, and perhaps one that is not feasible.

Fleet turnover rates will keep internal combustion engines as the dominant transportation powerplant for decades to come. Further, while some politicians have, almost casually, abandoned other forms of carbon reduction in transportation, there are a variety of applications where current alternative fuels, perhaps with a significant renewable component, will likely be able to provide an equivalent carbon reduction without the headaches involved with trying to fit square pegs into round holes.

That does not mean EVs will fade from the scene anytime soon—quite the opposite. Their penetration is only going to increase, regulatory push or not, as the technology has matured to the point where EVs are not only viable but desired by an increasing segment of the motoring public. Retailers need to be preparing an EV service strategy, and, to save considerably down the road, prepositioning appropriate electric conduit with any new or rebuilds for use as needed in the future. Similarly, efficiency will only continue to increase with internal combustion engines through such factors as CAFE standards.

Underground Storage Tanks

Another trend highlighted was an increased focus on underground storage tank maintenance solutions with a laser focus on water removal. Companies such as Leighton O’Brien, Tanknology, Clean Fuels National and Crompco have traditionally provided these types of services and are Show newcomers. What was notable, however, was that some of the fueling infrastructure equipment providers showcased specific solutions designed to ensure water removal from the underground storage tanks.

Franklin Fueling showcased its Corrosion Control System, which proactively removes water from tanks with its Corrosion Control Water Separator. The system is driven by the EVO 600/6000 ATG to automate operation and monitor for the presence of corrosive environments.

Veeder-Root offered its HydrX Fuel Conditioning System, which provides continuous water removal within diesel underground storage tanks. It is designed to remove water from the lowest point in the tank, preventing water from stagnating on the tank bottom and breeding microbial contaminants. This trend is firmly in line with the research that has been coming out of the Fuels Institute’s Diesel Fuel Quality Council and is expected to expand. (For background, significant corrosion was discovered in 2007 in metal tank and sump equipment—pumps, drop tubes, sensor probes—after the conversion to ultra-low sulfur diesel. This launched a variety of inconclusive research studies and culminated in recent Fuels Institute research which potentially initiated or boosted this trend.)

Diesel Storage

An overview of the research and recommendations from two best-practice reports—Diesel Storage Tanks and Diesel and Fuel Loading and Delivery—were covered in the NACS educational session “Inspect, Detect, Correct & Maintain: How to Maximize Diesel Fuel Equipment Uptime.” The panelists were Scott Boorse, director of technical programs and industry affairs, Petroleum Equipment Institute; Chip Hughes, manager, environmental, Pilot Travel Centers; Prentiss Searles, marketing issues manager, American Petroleum Institute; and moderator Jeff Hove, vice president, Fuels Institute.

The findings and recommendations center on getting the water out to prevent biological growth, even for gasoline to a lesser extent, as it is the foundation for the biological growth that is linked to the corrosion. As stated: “Water is the only unequivocally correlated variable associated with corrosion rates.” Retailers will need to regularly test, use biocides, clean tanks and find other solutions to minimize water in the fueling system and clean out contaminants. This trend will transition to standard operations before long.

EV Education Opportunity

This year’s NACS Show featured three education sessions that focused on the opportunity that EVs bring to retailers. Receive six-month access to this primer on electric vehicles for just $49:

  • EV 101: What is EV/EV Charging and Why It’s Important featuring Center for Sustainable Energy, National Car Charging, Blink Charging
  • EV 201: How Do I Do EV? featuring Chargepoint, EVgo, Fuels Institute
  • EV 301: The Economics of EV Charging featuring RaceTrac, Alliance for Transportation Electrification, Electrify America, Free Wire Technologies

Visit www.nacsshow.com to purchase.

Keith Reid

Keith Reid

Keith Reid is editor-in-chief and editorial director of Fuels Market News. He can be reached at [email protected]

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