Written evidence from Osman Boyner, founder of BEDEO (ELV0046) 

1. About BEDEO and Evidence Submission

BEDEO is a European electric vehicle supplier and manufacturer of drivetrain solutions headquartered in England. Founded in 2009, BEDEO has focused on the production of pure electric lightweight commercial vehicle models. Vehicles made by BEDEO have driven more than 50 million kilometres across Europe including UK, France, Italy, Denmark, The Netherlands, and Turkey. 

Since its inception, BEDEO has been mainly active in the primary market, electrifying brand-new vehicles purchased from the factory-door of its OEM partners.

It now also offers an electric retrofit solution where BEDEO will become active in the secondary market, electrifying used vehicles.

We are presenting this evidence to highlight that retrofit solutions need to be built into the current regulatory framework with the associated grants and incentives to accelerate the decarbonization of transport.

Retrofit is taking an existing used vehicle – in this case a diesel-engine commercial van – and rather than replacing it with an expensive new electric or diesel vehicle, adding an electric power train to reduce its emissions and extend both its range and its working life.

Benefits of retrofit include:

• Providing an additional way to eliminate or reduce emissions from legacy combustion engine vehicles on our roads. Currently this solution is not captured in the regulatory framework and is not supported by grants or incentives.
   
• The focus of much of the public dialogue and grants and incentives are around passenger cars. More focus is needed on light commercial vehicles (LCVs). March 2020, the last time public data on these numbers was published, there were 4.1 million licensed vans on the roads in Great Britain, collectively covering 55.5 billion miles. Given that these vans have a potential lifetime mileage of over 200,000 miles, they will continue emitting CO2 long after 2030 and 2035. [1] A study carried out by ADEME (French Environment and Energy Management Agency) suggest that depending on the vehicle, 66 to 87 per cent greenhouse gases can be saved when a vehicle is retrofit.[2]

• Finally, retrofitting can ameliorate emissions from classic cars, while also allowing the owners to keep their original car, now with electric power. Total spending in the historic vehicle sector equated to £7.2 billion in 2021, up from £5.5 billion in 2016 which is at risk of falling if drivers can no longer drive or afford the upkeep of their vehicles. Retrofit offers the opportunity to electrify around 500,000 classic cars with high emissions – nearly 1.4% of all registered cars in the UK - as well as allowing owners to continue driving them.[3]

2. Grants or incentives to facilitate the LCV transition

Passenger EV penetration has risen exponentially over the previous years, helped by funding and grants. The plug-in grant for cars has succeeded in creating a growing market for ultra-low emission vehicles, helping to increase the sales of fully electric cars from less than 1,000 in 2011 to almost 100,000 in the first 5 months of 2022 alone.[4]

Battery and hybrid electric vehicles (EVs) now make up more than half of all new cars sold and fully electric car sales have risen by 70% in the last year, now representing 1 in 6 new cars joining UK roads.[5]

There are however glaring gaps when it comes to commercial vehicles, and the removal and reduction of grants are severely hindering electric LCV take up.

3. Specific incentives BEDEO believe will help reduce emissions for LCVs

Clear and consistent regulatory policies, including emissions standards, tax incentives, and penalties for non-compliance, are necessary to incentivize the transition to electric LCVs. The new electric van grant in the UK has reduced from £16,000 to £6,000 over the past few years, in line with a reduction in passenger vehicle grants. Due to the lower penetration of low-emissions vans, grants like these should be made available again specifically for LCVs.

An example of where this has worked well is with LEVC (London Electric Vehicle Company). The Department for Transport has provided financial support to drivers to facilitate the transition to clean, efficient electric taxis, which have a combustion engine range extender in them. The multi-million-pound Plug-in Taxi Grant programme gives taxi drivers £7,500 off the price of a new vehicle. At BEDEO, we are calling for an equal incentive for fleets that retrofit their vehicles with electric power.

4. A similar framework in France

France shares a similar regulatory framework to England with Euro standards governing van emissions. However, France has gone beyond the Euro standards and implemented additional domestic policies to address specific pollution concerns.

In recent years, the French State has implemented numerous measures[6] which encourage the French to swap their combustion engines for electric or hybrid motors. The French state is offering a bonus of €9,000 to companies and local authorities who retrofit their commercial vehicles to electric.

5. Why retrofit

The main obstacles to achieving the UK Government's 2030 and 2035 phase-out dates for light commercial vehicles (LCVs) are many including:

• The need for an extensive charging infrastructure to support electric LCVs

• The development and availability of suitable electric LCV models and technologies with the required range, load capacity, and adaptability to various industries (i.e., refrigerated and ambulances)

• The cost of new electric LCVs remains a major concern for businesses, especially for smaller enterprises, as well as rising fuel costs and ULEZ charges.

• Ensuring a reliable and robust supply chain for electric LCVs and their components is vital. This includes batteries, motors, and other critical parts.

Retrofit ameliorates these issues by providing a practical and effective solution to extend the lifespan of existing internal combustion engine (ICE) LCVs. Through retrofitting, businesses can transform their older vehicles into zero or reduced-emission electric LCVs, addressing several of the obstacles outlined:

Charging Infrastructure: Retrofitting reduces the dependency on a widespread charging infrastructure. Part of our solution allows the retrofit vehicle to retain its engine as a range extender for use outside of low emission zones, also ameliorating range anxiety.

Availability of Suitable Models: Retrofitting allows businesses to continue using their familiar and specialized ICE LCVs, including those designed for specific industries like refrigeration, people transport and service vehicles. This preserves the adaptability and functionality of these vehicles.

Cost Concerns: Retrofitting can often be a more cost-effective alternative to purchasing entirely new electric LCVs. It capitalizes on the value of existing assets, the high upfront costs associated with buying new electric vehicles.

Supply Chain Reliability: Retrofitting reduces the pressure on the supply chain for new electric LCVs and their components. By retrofitting existing vehicles, businesses can continue operations while contributing to the transition to electric mobility.

In summary, retrofitting presents a practical and sustainable approach to overcoming some of the challenges associated with the transition to electric LCVs. It allows businesses to make the most of their existing vehicles, maintaining operational efficiency while contributing to the reduction of emissions and the overall transition towards a more sustainable transportation ecosystem.

6. Retrofit creates a secondhand EV market, from ICE vehicles

While the secondhand EV market needs to be incentivized, the secondhand ICE market must be looked at too. The fate of old internal combustion engine vehicles plays a significant role in the transition to a more sustainable transportation system.

The current second-hand EV market is growing steadily, driven by increasing demand for electric vehicles and improvements in battery technology, which enhance the longevity of EVs. Consumers are becoming more receptive to buying used EVs due to factors such as lower prices compared to new models, improved battery reliability, and expanding charging infrastructure.

However, the key challenge lies in addressing the large number of old ICE vehicles still on the road. 4,887,593 vans are currently on UK roads [7] according to the SMMT with 1.9% being battery electric. This leaves over 4.5 million vans which will either continue emitting pollutants way past 2035 if they are kept, or be scrapped, wasting valuable, usable materials. Retrofitting offers a practical solution to extend the lifespan of these vehicles and transform them into electric vehicles.

Retrofitting old ICE vehicles with electric powertrains allows for a more sustainable and environmentally friendly option compared to scrapping them. This approach not only reduces emissions but also maximizes the utility of existing vehicle assets cost effectively.

In summary, while the second-hand EV market is showing promising growth, addressing the existing stock of ICE vehicles is equally vital. Retrofitting presents a practical and sustainable solution to transform old vehicles into zero-emission alternatives, helping to accelerate the transition towards a cleaner transportation ecosystem.

7. Electric Retrofit for Classic Cars

According to 2018 analysis from UK non-profit Zemo, while a new EV will produce overall lower carbon dioxide (CO2) emissions than a petrol car over its lifetime, manufacturing can account for anywhere between 20% to 95% of the emissions associated with an electric vehicle (depending on the source of electricity). A 2021 report from the non-profit International Council of Clean Transportation says that overall EV manufacturing in Europe for a medium-sized car creates two metric tons more in CO2 equivalent than manufacturing a conventional car.

Retrofitting an existing vehicle bypasses manufacturing, and retrofitting old cars is a more efficient use of resource by not having to extract new raw materials in the production of a functional vehicle.

Many cars and industrial vehicles are discarded before they’ve completed even 10% of the mileage they were built for, which is where electric retrofit offers a solution. Total spending in the historic vehicle sector equated to £7.2 billion in 2021, up from £5.5 billion in 2016 which is at risk of falling if drivers can no longer drive or afford the upkeep of their vehicles. Retrofit offers the opportunity to retrofit around 500,000 classic cars with high emissions – nearly 1.4% of all registered cars in the UK - as well as allowing owners to continue driving them.[8]

Conclusion

Considering the realism and achievability of the 2030 and 2035 phase-out dates depends on concerted efforts from various stakeholders. While these goals are ambitious, they are achievable with strategic planning and decisive action. To make them achievable, the Government should consider recognising electric retrofit as a solution to the phase out, reinstating higher grants for electric vans, introduce new incentives and grants for retrofitting, along with providing local support from councils to facilitate the retrofitting of combustion engine vans.

Electric retrofit is a pragmatic and practical stepping-stone to accelerate decarbonising transport.

All electric is still a 30+ year horizon and a mix of solutions will be needed to clean up emissions much faster than is currently possible.

Whereas all of the focus has been on electric cars at one end, and buses and HGVs at the other, vans and classic cars seem to be continually overlooked.

We need specific solutions for these applications that support both the short-term needs of the van operator and longer-term need to get to net zero as fast as possible. Retrofit to electric achieves both.