As property groups head towards a net-zero future, creating fossil fuel free construction sites will be a challenging, but necessary ambition.
Construction accounts for around 23 per cent of worldwide carbon emissions. Approximately 5.5 per cent of those emissions are directly connected to construction operations, mostly through the burning of fossil fuels to power machinery and equipment.
The rate of transition to non-fossil-fuel construction machinery, however, carries a significant level of uncertainty.
In a recent report from Lendlease in collaboration with the University of Queensland (UQ) titled Stepping Up the Pace: Fossil Fuel Free Construction, UQ forecast 40 per cent of construction machinery and equipment (by energy use) can be replaced by electric by 2030. This can grow to 60 per cent by 2040, based on today’s technology and policy settings.
This signifies that there is now no path to zero in the construction industry until we see significant reductions in emissions by the acceleration of electric construction equipment and machinery.
Importantly, the UQ study confirms that construction meets the criteria for a ‘hard to abate’ sector which applies to any industry in which the shift to net zero is difficult because the technology is either unavailable or too expensive.
“If you look across the whole value chain, there are other activities that are more carbon intensive, but when you zero in on the building stage, it’s the trucks, diggers, cranes, equipment and diesel that is used to power them that are the main source of emissions,” Lendlease Head of Sustainability Australia Ann Austin (pictured above) said.
“As part of Lendlease’s journey to absolute zero we cannot ignore that part of our value chain and actually achieve absolute zero.”
Austin said the current forecast of 60 per cent of construction machinery being able to be electrified by 2040 is what the current status indicates.
“We would love it to not manifest as that,” she said. “The ultimate goal is electrification, that is the cleanest and the most sensible path for us to follow.
“But if we sit and wait for it, we’re going to be creating a lot of emissions in that timeframe that we could be significantly reducing through the use of renewable diesel. Hopefully, we can accelerate electrification so that 60 per cent is exceeded.”
Lead author, Abigail Heywood, Lendlease National Sustainability Manager – Strategic Projects, Australia said getting to full electrification requires a multi-pronged approach.
“There’s a large piece about working with those original equipment manufacturers to get that on path,” she said.
“So while that happens, renewable diesel is absolutely critical to our decarbonisation pathway.”
Following a comprehensive analysis, the Lendlease team determined that the clearest path to fossil fuel free construction is through plug-in electric and mobile electric machinery and equipment, supplemented by renewable diesel.
A significant headwind is that there are no low-carbon fuel policies, national biofuel initiatives, or government subsidies in Australia. Biofuel production and use are supported by minimal tax credits and mandates. Significant investment in a renewable diesel market has been discouraged because of this.
Consequently, renewable diesel is not yet produced in Australia. Renewable diesel feedstock, such as tallow and used cooking oil, is instead exported overseas and used to produce renewable diesel for global markets.
The report said global forecasts show the renewable diesel industry will grow over the coming years to meet demand and explained there is an opportunity for the emerging sector to scale up should Australia adopt a low carbon fuel policy in line with global counterparts.
It also noted significant growth of a domestic renewable diesel industry would grow with investment into the refineries or financial support for use of the product.
As part of Lendlease’s commitment to Mission Zero, the company is delivering fossil fuel construction pilots on several sites over the next two years. One Sydney Harbour (pictured below) is first on the list where the team is using as many fully electric options as possible, including electric tower cranes and a concrete pump, as well as importing renewable diesel for all remaining diesel needs.
The research also investigated the total cost of ownership of conventional diesel-powered construction machinery to low and zero-emissions options.
Looking at mini excavators, mini spider cranes and crawler cranes, the research found that over their operational lifespan, the battery electric models are economically competitive to diesel models, provided adequate charging infrastructure is conducted.
“Government support or green finance needs to bridge that gap so people can pay that more money upfront and leverage the savings over its lifetime,” Heywood said.
The report notes that to ensure the transition to electric fleets, financial support must bridge the gap between high upfront costs and low operational costs via government grants, tax benefits and from private green finance loans.
“We need to electrify, and while we’re working that out, we need renewable diesel, and we need both of them faster,” Austin said.