Is there a hybrid service truck in your company’s future? That depends on a host of factors, including vehicle cost, fuel prices, the nature of your operations, regional air-quality standards, and customer demand for earth-friendly service providers.

Some manufacturers produce hybrid vehicles that offer fuel economy up to 50 percent better than conventional trucks, but they are costly, and with fuel prices still relatively low and stable, there is little incentive for businesses to give hybrids a try.

A few contractors in the United States and abroad are trying out medium- and heavy-duty hybrid trucks, which use internal combustion engines assisted by battery-driven motors. Contractors in areas with strict air-emission standards, and those who see value in portraying their companies as “green,” appear more willing to step out and buy one or two hybrids.

Numbers tell a story

Sales of hybrid trucks are still sparse. A study compiled by the Center on Globalization Governance & Competitiveness, a group affiliated with Duke University, projects production of commercial hybrid trucks at 4,900 units in 2010, most for corporations that own large fleets.

A report from marketing research firm Frost & Sullivan estimates that 220,000 hybrid trucks will be sold in Europe and North America by 2016. That’s a 76 percent compound annual growth rate – but still negligible compared to the 4 million trucks the firm expects to be produced in total in that year.

High prices are the biggest obstacle to hybrids. Truck producers can’t decrease prices much until volume dramatically increases. Not even federal tax credits of up to $12,000 for some hybrid truck models were enough to offset the price premium.

Reducing idling time

The most common electric hybrid truck technology relies on an electric motor and a diesel-powered engine. Either power source or both can provide power at a given time. On many models, controls monitor driving conditions and automatically choose the ideal power mode, which is shown on a dashboard display.

To power the electrical side, energy expended while braking is captured and stored in lithium-ion batteries. That power is then used either to help with acceleration or to operate truck accessories, such as lifts or pumps. That means hybrids are best suited for urban stop-and-go driving.

In Kenworth hybrid commercial trucks, the stored electrical energy can power truck accessories for up to 40 minutes with the engine turned off, saving fuel and reducing engine wear. When the batteries run out, the engine turns on automatically and recharges them with five minutes of idling, says Judy McTigue, marketing manager for medium-duty trucks.

“This could be a very good application for vacuum trucks,” she says. “If you’re in pumping mode and all you need is power from the PTO, it’s a great application.” Here, users save significant money even though they are not driving many miles – powering the ancillary equipment with electricity is more important than moving the truck itself.

“It’s always a question of what’s appropriate for the truck’s duty cycle,” McTigue says. “When I talk to someone about buying a hybrid truck, I always first ask them to describe what a typical day of driving is like for them.”

Tony Vasquez, streets and drainage manager for Bexar County, which surrounds San Antonio, Texas, agrees. “You have to fit the right vehicle to the right application,” he notes. “We’re working with a vendor to produce a hybrid street sweeper. They travel at three to five miles per hour, which is a perfect application for a hybrid vehicle.”

Payback in limbo

Hybrids also become more economically justifiable in areas with bad air pollution. A good example is Bexar County, where county officials, facing designation as an air-quality non-attainment area, approved a policy in 2007 aimed at conserving energy and promoting environmental responsibility.

The county bought three 2009 Kenworth T370 diesel-electric hybrid dump trucks. The county uses the single-axle trucks, with 6- to 8-cubic-yard boxes, to deliver material such as asphalt and soil. They also can pull a trailer that holds small equipment.

At the time, rising fuel prices made the hybrid trucks more attractive. “The hybrids cost about $128,000 each, which is 25 percent more than conventional trucks,” Vasquez says. “We expect about an 8- to 10-year payback, largely based on fuel prices. That payout is a little longer than we expected because diesel fuel prices have decreased from a high of about $4 a gallon.

“In reality, if you make a decision just on a cost basis, it might not make as much sense. But if you take into account air emissions and the county’s environmental goals, then it comes into play.”

The county’s conventional dump trucks get about 6 mpg, versus 9 mpg for the hybrids. As a bonus, the new trucks’ crew cabs hold up to five people, instead of two. “Now we can transport more people to job sites with fewer vehicles, which also saves fuel,” Vasquez says.

For contractors, it’s advantageous to be able to work in non-attainment areas where competitors can’t, especially when bidding on government jobs that may require low-emission vehicles.

“If you work in a non-attainment area, hybrids can open up work for your fleet and give you an edge in obtaining business,” McTigue says. “In addition, hybrids can provide an advantage in areas with noise-abatement laws. They’re so quiet that at 10 p.m., nobody even realizes your truck is there.”

Going green

Some contractors find value in marketing their companies as green. For them, large and visible hybrid trucks project that image. “It’s very difficult to put a value on a green image, but some of our customers develop marketing programs around it,” McTigue says. “They put hybrid diesel decals on the doors of their trucks. They’re very proud of them. We’ve seen everything from full vinyl wraps around box trucks to banners on bumpers.”

Nonetheless, without clear financial or marketing advantages, it appears many contractors will remain conflicted. John Eldredge, general manager of Eldredge Equipment Services, a large waste-hauling firm in West Chester, Pa., observes, “On one hand, we have a responsibility to improve the environment. On the other hand, there’s the financial feasibility. It’s a fine line.”

In the long run, industry observers like Rich Piellisch, editor of Fleets & Fuels magazine, believe it’s a question of when, not if, hybrids become more common. “The price of fuel will inevitably go up again, and that will make the additional cost easier to justify,” he says. “And as sales volume increases, prices will come down.”

Adds McTigue: “Right now, the return on investment isn’t out there for everyone. But people are more comfortable with the technology. They see it’s not crazy, weirdo, science fiction stuff. Hybrids are here to stay.”