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Home / Business / Companies / Energy

Energy-saving technology firm cuts truckies' fuel bills

NZ Herald
26 May, 2014 05:00 PM3 mins to read

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Fuel is a major part of overall costs for transport companies. Photo / Dean Purcell

Fuel is a major part of overall costs for transport companies. Photo / Dean Purcell

Entrants in the annual EECA Awards being presented tomorrow can claim credit for energy savings equivalent to the annual power use of two Hamilton-sized cities.

Among finalists in the 10 Energy Efficiency and Conservation Authority award categories is EZfuel, a service of Albany technology company Eroad that has its eye on a public share float.

EZfuel last year cut the fuel bill of Eroad's dozens of trucking company customers by $221,000.

"Fuel is generally the largest cost of any transport business and we're helping them be as efficient as they can," said Eroad chief executive Steven Newman.

Helping truckies make fuel savings is an offshoot of Eroad's main business, electronic collection of road user charges, which it has been doing since 2009.

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With its cab-mounted eHubo distance-measuring device and direct computer link to the New Zealand Transport Agency, the eRUC service is funnelling $240 million a year, more than a fifth of total heavy transport road user charges, to the Government.

EZfuel, an add-on to the eRUC service, was launched in 2012. Using oil company fuel card records and eHubo distance measurements, EZfuel sends transport operators consumption figures for individual vehicles.

"Our customers are getting a 10 to 15 per cent reduction in their total fuel bill," Newman said.

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"The first decision affecting fuel economy is whether you have the right vehicle for the job. If there are a number of vehicles doing the same task we can compare efficiency. Then it's a question of how a vehicle is maintained and driven. We can help at all three levels."

The company has eHubos in about 24,000 vehicles in New Zealand paying an average $89 a month. Since the end of last year, it has also been doing business in Australia.

But its biggest prize is approval for a direct computer link to the US state of Oregon Department of Transport to begin providing services there.

Newman says a two-year checking process by the state government resulted in Eroad becoming the only company with the go-ahead for computer-to-computer links with any US state transport department.

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"That takes the business to the next level."

Eroad has set up a US subsidiary headed by company founder Brian Michie and opened an office in Oregon's capital, Portland.

Newman confirms that a public float is also a possibility, but he wouldnot comment on its timing.

"The board of Eroad looks to rapid expansion in the future and a public listing in New Zealand is considered as one of those options."

Regardless of whether the EECA transport sector award goes to Eroad or to fellow finalist BP, Newman says the company will get something out of it.

"We win either way because BP tankers have Eroad and I know they're using EZfuel."

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EECA Awards

• Presented tomorrow
• 10 categories
• Entrants' energy savings total more than $100m
• Energy saved equates to 200,000 tonnes of greenhouse gas emissions
• Saved energy the equivalent of taking 75,000 cars off the road

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