bp Invests in Dynamon to help fleets decarbonise
Every fleet wants to decarbonise, but only some have the time and data to analyse the best options. That could be about to change, however, as bp ventures has invested £4 million into Dynamon, a UK-based software company specialising in developing advanced data analytics and simulation tools for transport and logistics companies.
Customers use Dynamon’s platform and tools in many countries to help them understand the actions they must take to decarbonise their fleets cost-effectively. Without the software, this can take time and be very costly. With the unprecedented rise in fleet costs in the past few years, spending to save unknown quantities and costs is not viable. Fleet managers must know it will work in the long term before investing in fleet electrification and other decarbonisation strategies.
Originating from Southampton University, following its work with Team GB to maximise its performance at the Olympic Games 2012, Dynamon is now helping logistics companies be more efficient by saving fuel and reducing CO2 emissions. The company’s flagship product Zero helps commercial fleet operators develop and test solutions to save energy and capital costs. This includes calculating the best options for adopting electric vehicles through planning, charging infrastructure, energy costs and operations analysis.
For example, in a trial using a 4,000-vehicle last mile fleet, a Dynamon customer using ZERO software identified a potential £22 million annual energy cost saving (£0.28/mile diesel vs £0.125/mile electric) and 8,700 tonnes annual CO2 saving (609.86 g CO2e/litre diesel) after the tool analysed the best solution for fleet electrification.
The current challenge for global logistics and transport companies to transition, decarbonise and optimise fleet operations is placing pressure on procurement departments. They are tasked with cost-effectively electrifying large-scale fleets. Recent bp industry research shows that nearly half of UK fleet managers (43%) and fleet drivers (41%) think they’ll begin introducing EVs to their fleets within the next two years.
Decarbonising big oil
Commenting on what the initiative means for bp, Gareth Burns, Vice President of bp ventures, said: “Faster adoption of lower carbon energy and mobility solutions will help drive bp towards meeting its ambition to become a net zero company by 2050 or sooner and helping the world get to net zero. We’re very excited to be investing in Dynamon, an EV fleet software business deploying software as a service and data science to help the commercial transport industry transition to lower carbon energy fleets.”
Angus Webb (pictured), CEO of Dynamon, said: “It is our mission to bring the most advanced fleet optimisation tools to the transport industry. This is becoming increasingly critical with the transition to electric vehicles requiring both fleets and suppliers to perform complex analysis to ensure that solutions will be robust and cost-effective. We are delighted to be partnering with bp to deliver our software tools to fleets. With a strong heritage in engineering and technology and servicing fleets globally, bp is a perfect partner for Dynamon’s growth.
“Alongside the investment, Dynamon and bp have signed a commercial agreement to utilise ZERO, or similar tools. Working together will help bp pulse to diversify its fleet proposition and further develop its premium customer offer, providing customers with support as they increasingly look to adopt EV solutions.”
Existing EV fleets can also utilise Dynamon’s tools to get the most out of their operations, address cost management, support operational reliability, and gain a deeper understanding of battery degradation through data analytics that present the best options for their operational needs.
Stefan von Dobschüetz, General Manager for bp pulse Europe, added: “As fleets electrify, the commercial transport and logistics industry faces challenges balancing cost management, operational reliability while understanding new vehicle technology.
“Dynamon’s simulation and data analytics tools offer those companies unique fleet-specific insights to help identify the optimum EVs and charging infrastructure to replace existing combustion engine vehicles. This agreement between bp and Dynamon makes the tools available to our bp pulse customers and provides a range of options and solutions to effectively manage and enhance their EV fleet.”
bp is planning to invest more into its five transition growth engines, one of which is EV charging, while also investing in today’s energy system as it delivers its strategy of becoming an integrated energy company.
Image: courtesy of bp ventures/Dynamon