We all know that the concrete industry is undergoing significant transformation to reduce its carbon footprint. Focusing on blending portland cement with supplementary cementitious materials, moving to PLC Type IL, and now even to LC3 are big wins for carbon reduction. While these cement innovations are critical, in this article, I want to cover how logistics and transport (what we call A2 in environmental product declarations) is typically responsible for 11-18 percent of the embodied carbon of a yard of concrete—will play an increasingly important role for both cost reduction and sustainability efforts.
For concrete producers, logistics is not just an environmental concern, it’s a cost-saving opportunity. Reducing transportation costs by even a few dollars per ton mile can provide a significant competitive advantage. Fleet fuel choices, particularly the transition from diesel to compressed natural gas (CNG) or renewable natural gas (RNG), offer both financial savings and substantial carbon reductions, making logistics optimization a key pillar of the industry’s decarbonization strategy and offering competitive cost savings.
The Role Of Fleet Fuel Choices In Logistics Efficiency
Logistics management extends beyond simply selecting the shortest route—it encompasses fuel efficiency, transport mode optimization, and emissions reductions. Since most ready mixed producers source materials locally, I will focus this article on fuel efficiency for truck transport. In short, making the shift to CNG- or RNG-powered trucks will deliver better miles per gallon (MPG), lower fuel costs, and enhanced sustainability—all while also in some states benefiting even more from additional government incentives.
Dubbed Low Carbon Fuel Standards (LCFS), such incentives add to an already cost effective and carbon effective strategy. LCFS are available in California, Oregon, and Washington. Other states are considering or have adopted LCFS programs or similar clean fuel standards. Several states like Minnesota, Michigan, and New York are exploring LCFS programs, while others like Illinois, Massachusetts, New Jersey, New York, Vermont, and Hawaii are considering or weighing formal legislation supporting fuel standards. New Mexico has also passed a Clean Fuels Program. These initiatives rate fuels using a carbon intensity (CI), which is expressed in grams of carbon dioxide equivalent per megajoule of energy provided by that fuel. Check your state for availability.
Cost & Carbon Savings: Diesel vs. CNG vs. RNG
Consider a truck operating 120 miles per day, five days a week, for 45 weeks per year, carrying 20 tons (~10 yards) per trip. Also, we assume $15,000 to replace a diesel engine with a CNG engine. Below is the comparative analysis of diesel, CNG, and RNG based on their fuel consumption, costs, initial engine investment in the second chart emissions per ton-mile.
Quantifying The Added LCNS Benefit for RNG
As mentioned above, renewable natural gas-fueled trucks offer a compelling advantage in California and other states that offer or will offer LCFS programs. RNG not only reduces operating costs and emissions per ton-mile but also generates LCFS credits, providing financial incentives for fleet operators. A truck running on dairy manure-derived RNG from anaerobic digesters that minimize the release of methane will have a Carbon Intensity from -150 to -250. Using a CI -150 and driving 27,000 miles per year with a fuel cost of $6,570, the truck will generate 128 metric tons of CO₂e reductions, earning $9,600 in LCFS credits at $75 per metric ton. This results in a net return of $3,030 per year, making RNG use a financial positive and an environmentally responsible choice for fleet operators.
RNG with LCFS credits achieves a net-negative emissions impact, effectively removing carbon from the atmosphere. When these credits are sold as described the fleet operator of course also loses the carbon reduction benefit which is transferred to the buyer of the credit. This avoids double counting of carbon. The LCFS prices fluctuate substantially and can be seen on the California Air Resources Board site: ww2.arb.ca.gov/resources/documents/lcfs-data-dashboard.
thus hitting breakeven in less than two years and then continuously providing costs savings of $9,180 per year.
New Trucks Vs. Engine Conversion May Benefit Driver Recruitment And Retention
The concrete industry faces persistent challenges in hiring and retaining drivers, with turnover rates reaching 35 percent. Many companies struggle to find skilled drivers due to inconsistent schedules and in some cases better wages offered elsewhere. While converting a diesel truck to CNG costs approximately $15,000 per vehicle, purchasing new CNG or RNG trucks adds a significant upfront investment but extends the return period while solving another critical issue—driver recruitment and retention.
However, Fleet Modernization Can Help
Many drivers prefer brand-new trucks over older models, making fleet upgrades a strategic advantage in attracting and retaining talent. Investing in new CNG or RNG trucks not only improves fuel efficiency and sustainability but also enhances driver satisfaction, reducing turnover and ensuring consistent delivery operations.
A Win-Win Strategy
Optimizing logistics through fleet fuel selection isn’t just about environmental stewardship—it’s an opportunity to cut operational costs while reducing carbon footprints and making your EPDs more competitive. Companies transitioning to CNG and RNG-powered trucks benefit from lower fuel expenses, improved sustainability, and in some states substantial government incentives. In states offering LCFS credits fuel costs can be fully offset and potentially a revenue source when the producer chooses to sell the LCFS credits.
Chris Erickson is CEO and co-founder of Climate Earth, Point Richmond, Calif., www.climateearth.com, and welcomes comments on Carbon Smart, [email protected].