FEATURE
THE FUTURE OF FUELING
Alternative fuels, electric vehicle charging stations and other technologies are changing the face of the forecourt, and c-stores need to start preparing now By Tammy Mastroberte
convenience stores is in a constant state of change these days, whether it’s upgrading for EMV, offering alternative fuels, adding electric vehicle (EV) charging stations, or paying for fuel through in-car technology. But how quickly are the alternative fuel and electric vehicle changes happening, and what should c-stores be doing now to prepare for the future?
THE FORECOURT AT
“I think electrification is likely to be the only real impact to c-store business and in a high electrification case, c-store operators need to position themselves for a non-fuelcentric business,” said Alan Cerwick, CEO of VP Racing Fuels, a San Antonio, Texasbased company that provides branded fuel programs to the convenience channel. “With that being said, there’s likely time for owners to figure it out.” In February 2021, both General Motors and Ford Motor Co. announced plans to move toward electric vehicles, although Ford was talking primarily about its vehicles in Europe. General Motors said by 2040, it plans to have 100 percent of its portfolio fully electric, and Bloomberg is forecasting that by 2040, 60 percent of vehicles will be electric. President Joe Biden has announced that he will be heavily investing in the electric vehicle market to the tune of $174 billion. 76 Convenience Store News C S N E W S . c o m
“Even if they are correct, and I don’t think they are, that is still less than one-third of vehicles, which means two-thirds will still be combustion engine fuel,” John Eichberger, executive director of the Fuels Institute, a non-advocacy research organization dedicated to studying transportation energy based in Alexandria, Va., said about the Bloomberg prediction. Some advocates think EV is the only environmental solution and are pushing for mandates, specifically in California where they are trying to push a ban on combustion sales by 2035, he explained. However, while EVs will have a huge role in the future, Eichberger believes it will be less than people think, and that there will be combustion engine liquid fuel in the market for decades to come. Looking at the current average life of a car — estimated to be about 12 years and on the high side, 15 — and looking at the percentage of electric cars to be sold this year — around 1.98 percent, and likely around 2 percent next year — the reality is that the change won’t be as dramatic as represented by the news and car company announcements, Cerwick echoed. “While I believe electrification will be slower than touted, it will inevitably continue and likely over the years, put downward pressure on the c-store industry,” he said. “In the end, hybrids make the most long-term sense as a transition period, and traditional fueled transportation is likely to remain for the foreseeable future. That, however, doesn’t mean c-store operators shouldn’t begin thinking about how to transition their business.”
