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Power Businesses Earth

What Happened After Amazon Electrified Its Delivery Fleet? (yahoo.com) 204

Bloomberg looks at America's biggest operator of private electrical vehicle charging infrastructure: Amazon. "In a little more than two years, Amazon has installed more than 17,000 chargers at about 120 warehouses around the U.S." — and had Rivian build 13,500 custom electric delivery vans. Amazon has a long way to go. The Seattle-based company says its operations emitted about 71 million metric tons of carbon dioxide equivalent in 2022, up by almost 40% since Jeff Bezos's 2019 vow that his company would eventually stop contributing to the emissions warming the planet. Many of Amazon's emissions come from activities — air freight, ocean shipping, construction and electronics manufacturing, to name a few — that lack a clear, carbon-free alternative, today or any time soon. The company has not made much progress on decarbonization of long-haul trucking, whose emissions tend to be concentrated in industrial and outlying areas rather than the big cities that served as the backdrop for Amazon's electric delivery vehicle rollout...

Another lesson Amazon learned is one the company isn't keen to talk about: Going green can be expensive, at least initially. Based on the type of chargers Amazon deploys — almost entirely midtier chargers called Level 2 in the industry — the hardware likely cost between $50 million and $90 million, according to Bloomberg estimates based on cost estimates supplied by the National Renewable Energy Laboratory. Factoring in costs beyond the plugs and related hardware — like digging through a parking lot to lay wires or set up electrical panels and cabinets — could double that sum. Amazon declined to comment on how much it spent on its EV charging push.
In addition to the expense of the chargers, electric vehicle-fleet operators are typically on the hook for utility upgrades. When companies request the sort of increases to electrical capacity that Amazon has — the Maple Valley warehouse has three megawatts of power for its chargers — they tend to pay for them, making the utility whole for work done on behalf of a single customer. Amazon says it pays upgrade costs as determined by utilities, but that in some locations the upgrades fit within the standard service power companies will handle out of their own pocket.

The article also includes this quote from Kellen Schefter, transportation director at the Edison Electric Institute trade group (which worked with Amazon on its electricity needs). "Amazon's scale matters. If Amazon can show that it meets their climate goals while also meeting their package-delivery goals, we can show this all actually works."

What Happened After Amazon Electrified Its Delivery Fleet?

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  • by gweihir ( 88907 ) on Monday April 22, 2024 @03:50AM (#64413454)

    This should have been done 40 years ago when the Science was solid. Instead it looks like collectively, the human race wants to find out how bad climate change is really going to be. Not smart, but what else is new.

  • 3 megawatts to power chargers for a warehouse? Jesus! Where is all this power coming from?

    • by crow ( 16139 )

      That number seems wrong. A typical level-2 charger will run at or below 7kW. So unless they're putting in 400 or more, then that 3MW includes a lot of other power usage. And for a fleet, like this, they could easily install a thousand chargers that are configured to share power, so they would charge slower when all are in use, but it would still work fine: Some vehicles would get done early and start charging first, and as the spaces fill up, the charging rate would slow, but as those that need less fini

    • by cusco ( 717999 )

      In Maple Valley most of it from Grand Coulee Dam and from the reduction of power usage by more efficient appliances and heating/cooling of buildings, although a goodly amount is from their own generation. IIRC Amazon is the largest non-utility generator of renewable energy there is, with wind farms scattered about and solar installations on the roof of many (perhaps most now) of their million+ square foot fulfillment centers.

  • by MindPrison ( 864299 ) on Monday April 22, 2024 @04:44AM (#64413514) Journal

    This is going to be a long thread of Anti-EV zealots, especially those that didn't read the original article.

    The biggest problem they are facing is that there's a lot of vehicles that aren't delivered yet, and they fight for the charging spots, while in some areas there are plenty.

    Also, having a fleet of 100.000+ EV's is not easy to manage both charge-time wise and available spots. Amazon has insisted that the power delivered must be from solar power and the power company has to guarantee that as well.

    Personally I think they could solve it by doing what IKEA did, they went entirely Solar for all their warehouses some years ago, and produced way more power than they use themselves. But Amazon purchases their solar electricity for now, mostly.

    They also have an issue with EV's not being delivered to them in a timely matter, afaik - these vehicles (according to the article) are special built for Amazon, and only 13K of them in one area has been delivered so far, so it's not a clear cut case for them.

    TL:DR; your personal or peoples preferences for EV's has nothing to do with your use case for a personal EV or whether you need one or not, this is a HUGE scale that has various issues such as production, delivery, issues with those agreements on a large scale.

    Ev's may or may not fit your daily routines or economy, personally I don't think anyone should be forced to buy an EV, I have one myself, but it fits my lifestyle, travel distance, and I got it cheap (20K) so for me it's great. But it's not fun for people who have a long distance to travel to work, few charging spots, can't charge at home and have to pay 60K and upwards for one, that's not good at all.

    • by cusco ( 717999 )

      IIRC the actual ask from Amazon is that the power be from renewable sources, not necessarily solar.

      Interestingly Rivian probably wouldn't exist without Amazon. They were having trouble getting financing to build their factories, Tesla was having issues with quality at the time and being utterly unimaginative and risk-adverse the banks wanted nothing to do with a new startup needing hundreds of millions of dollars to build a factory. Then Amazon came along and contracted to buy 100,000 delivery vehicles fr

    • As with many early adopter issues, EV chargers weren't put in for private industry especially well. The construction methods and designs didn't really get very refined until recently. Also, for fleet applications, the Tesla/NACS port would have been a big win-- charging at 48A x 277V rather than 40A x 208V dramatically reduces charging time and cost of construction. I know a lot of desing engineers also short changed chargers when installing them ~10 years ago-- designing for an average of 30A was common

  • by DrXym ( 126579 ) on Monday April 22, 2024 @04:47AM (#64413516)

    I've watched YouTube videos about them and they have an excellent industrial design that fits their purpose. Just the way the driver sits, the visibility, the way packages are stored, the overall capacity. Everything is so well thought out. I wonder if Rivian has rights to sell the same basic vehicle to other courier firms because I could see it being a very profitable side business for them.

    • It looks like a delivery van?

      UPS also have heavily customised vans, as I believe do Royal Mail. Most delivery vans have some sort of shelving or box storage inside. The major grocery delivery companies have quite heavily customisedstorage and refridgeration systems in their delivery vans.

      Thought I did see a very dented Prime van yesterday--dented on the upper slope at the front like it crashed into a low obstacle--with a disorganised jumble of boxes in the back.

      • by jabuzz ( 182671 )

        The Rivian vans for Amazon are at the next level in terms of ergonomics for driver comfort. Go watch a YouTube video on it. What I was disappointed about is that they didn't think to fit a toilet. Especially during the pandemic, there were a lot of complaints about delivery drivers struggling to find toilet facilities. This is basically a solved problem as motor homes have had toilets for decades. Put in some pump-out facilities at the depots and you are sorted. Before anyone says it would need to be acces

        • Yeah, a simple marine head like you'd find in any boat past the day sailor stage. It's probably not the worst idea in the world. A single human isn't going to require much waste storage - a 5L tank ought to be more than enough for a full shift.

          I imagine the issue is that it would take up space that could be occupied by half a cubic meter of packages instead, and drivers obviously do manage to get through their days without an in-truck bathroom now.

          • There are logistics issues to doing it for sure, but if it improves driver performance it might be worth it. Most of the volume required can be freed up after a few deliveries.

      • by DrXym ( 126579 )

        Go and watch Doug DeMuro's video about it. It's not just a delivery van, it's fantastically well thought out electric van terms of efficiency, ergonomics, safety, visibility, route planning and driver comfort. Amazon probably do have crappy regular vans in their fleet spray (as well as contractors) painted with their livery. This is an entirely separate thing to those. And as you say other couriers have similar needs which is why I think if Rivian has rights to the design there would be a lot of companies v

    • by cusco ( 717999 )

      They could sell the thing, since it's their design (I'd want one for an RV), but they're contractually committed to delivering the first 100,000 to Amazon with options for more. That contract was what got them their financing to build the factory in the first place, so I imagine they're pretty intent on carrying it out.

  • by VeryFluffyBunny ( 5037285 ) on Monday April 22, 2024 @05:01AM (#64413530)
    Can Amazon's energy providers guarantee that they're providing 100% capitalist electricity & that none of it is socialist electricity fed into the grid from hippie house solar panels? Contaminated electricity could destroy our freedom! Why is nobody talking about this?!
  • Does it offset carbon from blasting off into space every other day?
    Perhaps Blue Origin isn't Amazon, but the Origin won't be blue much longer when 1 rocket launch wipes out any gains made on the ground.
    • A rocket launch emits about the same amount of CO2 as a trans-pacific jet flight.

      Amazon triggers a *lot* more trans-pacific jet flights than Kuiper ever will trigger rocket launches.

  • Another lesson Amazon learned is one the company isn't keen to talk about: Going green can be expensive, at least initially

    This just in: Investing can be expensive! News at 11!

  • by dfghjk ( 711126 ) on Monday April 22, 2024 @09:24AM (#64413972)

    Level 2 chargers are glorified power cords, they cost nothing to make. Level 2 charging is implemented in the vehicle, not the "charger".

    Any time you see the claim that BEVs are not viable because of the cost of (largely level 2) charging infrastructure, you know you are dealing with bad faith argument. The oil companies, and their political cohorts, would have you believe that we cannot afford electric vehicles because of the cost of the power cords to plug them in. It's bullshit, it's also pervasive and effective because people are ignorant. Electrical demand will not skyrocket, level 2 is not expensive. Lifestyles and living arrangements need to adjust. The fact that 40% of the population cannot access L2 at their homes is the bigger problem.

    Level 3 is another matter, but that's not even what's discussed here. I'm not sure I'm even a BEV supporter, I think synthetic fuels and hydrogen may be better approaches, but charging infrastructure is just a big lie and $1000 home L2 cables are a cash grab, not even Tesla charges money like that.

    It's funny how we can construct buildings wired to the hilt with electrical power and it's perfectly affordable, yet we want to add some of that power to the parking garage and it crashes the economy. Hmmm, wonder who came up with that?

    • by crow ( 16139 )

      Yup, bought in bulk, a level 2 charger should be under $300. But that goes up here because you need devices that will stand up to a degree of abuse, and you need them networked to share power to manage consumption across the entire fleet at the location (which also reduces the need to upgrade the power from the utility). I could easily see that running to between $500 and $1000, even given that Amazon is likely buying these by the thousand. But that's still way less than the numbers cited in the summary.

    • The wall connectors (proper term) do include safety and communications equipment, but the hardware is heavily commoditized. The site infrastructure was what was expensive. Depending on how it was done, each pair of "chargers" needed its own conduit from the panel, and code issues mean that once you have over about 20 conduits you need to space them into multiple conduits. I worked on a project with 100 chargers, and the amount of trenching done was ...sub optimal. You also end up needing to deal with st

  • As someone in logistics, I'm more interested in the actual performance.

    Amazon's operations run at scale that is usefully simulative of real delivery-truck operations, more telling than the performative 'tech demonstrations' of other companies (eg a truck or two that they trot out for pictures when the Sustainability C-suite is giving a speech) where it's impossible to discern if the trucks are providing a value/performance that means EVs are *actually* interesting for businesses.

    The comments to the OP refer

  • I would love to see Rivian partner with someone like Winnebago and put out a small RV based on the same design. It would need a larger battery, but otherwise the basic platform would be great for a small RV.

  • by mspohr ( 589790 ) on Monday April 22, 2024 @11:13AM (#64414292)

    17,000 Level 2 chargers @ $500 each is $8.5 million plus $1000 each for wires, etc. is $25.5 million.
    Seems like Bloomberg has a math problem... or perhaps an agenda against EVs when they estimate 2x or 3x times that (or 6x for a really scary number).
    Also, no mention of the reduction in fuel costs. (EVs cost about 75% less to fuel and have much lower maintenance costs)

  • Temu is not spending billions on electric vehicles and charging stations. Temu will eat Amazon's lunch, at least until Congress bans them.

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