In light of increasing pressure towards low emission transportation a recycling company from Switzerland has commissioned this paper to analyse alternatives for their commercial vehicle using mostly the prevalent diesel engine. As such, 5 different propulsion types have been analysed, namely battery electric, natural gas, plug-in hybrid, hydrogen and, serving as a baseline, diesel vehicles.

First, existing research about the various propulsion types was analysed. The resulting findings have been collected in the form of a SWOT analysis. Secondly, a dynamic net present value (NPV) analysis was carried out using four vehicle types: van, 18 tonne truck, skip loader, refuse collection truck. The model was constructed using excel with data provided by the commissioning company and from vehicle manufacturers. The NPV model includes all costs that a vehicle may accrue throughout its lifetime and special cash flows from preferential government treatment for the diesel alternatives.

The results show differences between the various propulsion types. For vans the battery electric vehicle shows the lowest NPV. However, the electric van does not have sufficient battery range to complete a route set out by the recycling company. Meanwhile, diesel has the lowest costs in the categories of 18-tonne trucks and skip loaders. For the refuse collection truck the natural gas version seems to be the cheapest option. Although not showing the lowest costs in any of the vehicle categories, the hybrid options remain in proximity to the other alternative solutions. Hydrogen vehicles on the other hand seem to exceed the costs of all other propulsion systems in every vehicle category and can therefore not be considered financially competitive in today's market situation. When adjusting the NPVs of the trucks for potential extra income from public tender offers, the cost curves changes. The electric option now shows the lowest NPV for 18-tonne trucks while natural gas becomes the preferred choice for skip loaders and refuse collection trucks. The recycling company can benefit from this paper and its results by incorporating them into their future vehicle replacement decisions.