In this episode of the PSR PowerTALK™ podcast Carlos Briganti, Managing Director of the Power Systems Research South American operations, analyzes the outlook for MHV production in Brazil, with special emphasis on the trends away from diesel power.
He will be presenting this information in more detail during a webinar sponsored by the ABM on March 17, 2021. The webinar is sponsored by the Brazilian Association of Metallurgy, Materials and Mining (ABM). There is no charge for the ABM webinar.
You can register here for the webinar: https://www.abmbrasil.com.br/eng/inscricoes/difusao-digital/webinar-tendencias-tecnologicas-volumes-para-veiculos-comerciais
The ABM is a non-profit civil association whose objective is to bring together individuals and companies aiming collective actions that promote the development of people, technical and scientific evolution and innovation in processes, products and management in their areas of expertise. PSR
Transcript
Welcome to the PSR PowerTALK podcast, produced by Power Systems Research. Today Fabio Ferraresi, Director of Business Development, South America and Carlos Briganti, Managing Director, South America, will discuss the outlook for medium and heavy vehicles in Brazil.
00:17 Fabio Ferraresi
Hey, hello Carlos. Welcome. Nice speaking with you today for our podcast.
00:23 Carlos Briganti
Thank you Fabio. It’s a pleasure to be here to share this information for Power Systems and our customers.
00:34 Fabio Ferraresi
I know you are very busy preparing content for some webinars taking place in March. What are the events we are going to participate?
00:43 Carlos Briganti
Ok. We will be presenting volume forecasts for medium, heavy and off-road machines in the Strategic Plan Seminar organized by Automotive Business on March 3, 2021. Automotive Business is the most important media covering the automotive segment in Brazil. We have a long partnership with them.
We are also organizing a webinar in partnership with ABM by 17 of March. ABM is the Brazilian Metallurgy, Materials, and Mining Association. Their focus is mainly future technology that will impact their segments. It’s a different audience and we are very excited about this opportunity of sharing our vision with them.
I used to be part of the board of ABM directors for 8 years. I left this position in 2015; so to me and Power Systems it’s an opportunity to re-link our connection with the ABM.
If you want to participate or to register in both seminars, please go to the Power Systems site and you have all you have to all the instruction to do this.
02:08 Fabio Ferraresi
Carlos, how do you see the future of diesel fossil as a fuel alternative for medium heavy vehicles in global terms and in Brazil?
02:16 Carlos Briganti
There is a high pressure from the environmental side to eliminate diesel fossil as a fuel alternative for medium and heavy. Our opinion that, uh, for long haul application these fuels will be still the best alternative during this decade. The reasons are associated to cost, infrastructure for distribution, availability, improvement of vehicles to attended type.
This means that the market of heavy vehicles, which is approximately 6% of the market, of medium and heavy. For other applications, such as urban vehicles, delivery trucks. The diesel fossil will be replaced by natural gas, hybrid electric, cooking fuel cells and other non-fossil; depending on the geopolitical situation of each region.
03:16 Fabio Ferraresi
And what are the key alternatives to diesel?
03:19 Carlos Briganti
On the internal combustion side, we have a biodiesel, HVO also called the green diesel, natural gas, and bio-gas. From electrical alternatives there are plug-in solutions and fuel cells which are based on hydrogen as a fuel. Then there are the hybrid solution; which we are a combination of the alternatives that I mentioned before.
03:47 Fabio Ferraresi
When are important milestones for the change?
03:50 Carlos Briganti
The milestones is mainly related with legislation and the milestone for legislation is different in each region. OK, so there is no date for the global date. For each region has a different milestone. Then the most important milestone as I said are the introduction of new legislation for emission of the toxic elements as well as legislation for greenhouse gases.
These are key drivers. The key drivers. Infrastructure in place or to be installed. Availability of the alternatives, proven technology, costs of the alternatives, are all elements that will dictate the milestones for each region. We update these changes in technology each quarter in our CV Link database.
04:47 Fabio Ferraresi
As we are going to speak to ABM audience, certainly we’ve covered impact on materials. What are the role of new materials to support the medium and heavy vehicles industry on obtaining the new legislations?
04:59 Carlos Briganti
As I said before, there are many alternatives competing along with this decade… new material. We will be very important to attend greenhouse legislation because vehicle weight is a key element to increase energy efficiency. High strength steel, aluminum, magnesium class composites and all alternatives are being considered on weight reduction.
For electrical vehicle, the battery’s life and costs are associated with a new material, such as reaching in fuel cell vehicles, additionally, to the consideration made for batteries.
We also need to consider fuel tank to support high-pressure of the compressed hydrogen, so it’s a new world for materials.
05:53 Fabio Ferraresi
Are there any limitation on these materials? Are there limitation as availability or price?
06:00 Carlos Briganti
New materials always require research in the introduction, which typically associated to high price and low availability. With the scale of the winner technology will help on solving these issues.
06:14 Fabio Ferraresi
Certainly, one important event is the introduction of P8 in January 2023 in Brazil. What do you see as the most important impact of P8?
06:26 Carlos Briganti
It’s a is a basically Euro 6 legislation. As I said before, the main impact is the reduction of toxic elements such as, uh, nitrogen oxygen particulates. There will be an impact in vehicle prices but not so high. From our side we are forecasting our CV Link database a pre-buy in 2022. Anywhere that was updated in new emission components to attendee period P8.
07:02 Fabio Ferraresi
And do you think the deadline of P8 will be delayed? Why or why not?
07:08 Carlos Briganti
I don’t think that a P8 will be delayed in spite of the lobby of some audience here in Brazil. Brazil is already late or initially staged. If we compared with the rest of the world, increase of this technological gap would it be a mistake. Additionally, they were possibility covid will be much more sensitive to environmental issues. I think that it, there will be more pressure to accelerate the introduction of a new technology to reduce it in their environment impact. Delay of P8 is against these trends.
07:54 Fabio Ferraresi
So thanks, Carlos, it’s been a pleasure speaking with you today.
07:58 Carlos Briganti
Thank you guys, uh, to give us to this opportunity and I hope we, as always, we can share and improve the knowledge meant to our customers.
08:14
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