Global regulations phasing out petrol and diesel sales have intensified the shift to clean energy. Many European nations are now slated to ban the sale of these vehicles by 2035, with some countries aiming to accelerate this timeline.
In the quest for decarbonization, innovation in fuel technologies such as blue and green hydrogen, along with renewable sources for EV charging, has surged. However, questions remain regarding impacts on conventional fuel production and the forecourt, the industry’s face to consumers.
The looming ban on petrol and diesel sales does not signal the immediate end of Internal Combustion Engine (ICE) vehicles. Existing ICE vehicles will still demand fuel and refueling stations.
According to the International Council on Clean Transportation (ICCT), an estimated two billion or more new ICE vehicles will be sold over the next thirty years. As vehicle owners are now holding onto their cars longer, petrol and diesel dispensers will remain useful on forecourts until at least 2045.
Billions of dollars worth of global investments into charging networks might accelerate the transition to EVs. These investments, coupled with the soaring adoption of alternative fuels such as hydrogen, highlights the growing importance of these fuels in achieving net-zero emissions. Hydrogen refueling stations are projected to increase by 17% between now and 2032.
Meanwhile, Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG) are predicted to experience shifts in their production, import and export dynamics. However, despite the rise of EVs and alternative fuels, oil-based fuels will continue to be in demand as vehicle owners maintain their existing ICE vehicles longer.
Future of the Forecourt
The surge in EV and alternate fuel adoption will shape the forecourt’s future. Today’s consumers seek a more personalized experience, and this extends to their choice of forecourt. Substantial investments will be required to win this consumer loyalty.
Having reliable and easy-to-use EV charging stations will be a crucial factor for forecourts. Outside of the core charging service, consumers’ preferences for amenities while their EV charges have become quite eclectic, ranging from cafes to business centers.
The concept of ‘non-fuel strategies’ is taking shape, suggesting a pivot in how businesses approach the customer experience in a forecourt. Fuel retailers are planning substantial investments into non-fuel offerings, including enhanced convenience store experiences and diverse services such as children’s play areas, laundrettes, and even click-and-collect or prescription services.
