Any driver who has run out of gas understands the important role energy plays in keeping engines purring. Many c-stores and gas stations provide a gasoline rescue service for just this purpose, but whether and when they will invest in a similar service for electric vehicles remains to be seen.
Until then, private corporations are joining public agencies in announcing investments in electric-vehicle charging. With EV charging-station installations lagging production of EVs, the companies aim to fill a void in the marketplace.
Shell plc announced last week it would invest $500 million in EV charging, and bp said Tuesday its acquisition of Travel Centers of America provides it with 288 highway sites for possible EV charging stations as it invests $500 million over the next two to three years in EV charging infrastructure. “In EV charging, we are rapidly building scale and demonstrating emerging profitability,” bp CEO Bernard Looney said in its second-quarter earnings call.
Travel Centers of America is expected to deliver growth for bp’s transition businesses, such as EV charging. In the second quarter, bp increased the number of EV charge points by 70%, with usage increasing as well, the company said. It convenience business, excluding TA, saw gross margins increase 7% from the year-ago-period.
Besides the fuel marketers’ investments, seven U.S. automakers are joining forces on a charging network with 30,000 charging plugs, using federal government funds to stretch their own investments. The first charging stations are expected to open in the United States in 2024, according to an announcement by General Motors and Honda. The group of seven also includes BMW Group, Hyundai, Kia, Mercedes and Stellantis. The companies did not offer details on where the new charging plugs will be installed.
Federal Funds
The joint venture will use public from the National Electric Vehicle Infrastructure (NEVI) program and private funds for the network of fast-charging direct current charging stations. They’re expected to be accessible to battery-powered EVs using the North American Charging Standard connector or the Combined Charging System. Ford isn't one of the seven but is proactive in investing in the future of EV charging, boosting production of EV production and providing charging services, including access to the BlueOval Charge Network in North America.
State governments also are getting involved. Ohio has announced its first disbursement of $18 million in NEVI funds for 27 new charging stations along its interstates, with Pilot Co., Casey’s, Shell and Turkey Hill Mini Market among the recipients. The grant per site is about $700,000.
In Illinois, funds from a settlement with automaker VW over diesel emissions are being allocated for a network of 348 fast-charging points. The Illinois Environmental Protection Agency announced in mid-July it is distributing $480,000 in grants to convenience stores and fuel stations for EV charging ports, including bp Pulse, Road Ranger, Pilot Travel Centers, Love’s Travel Stops & Country Stores and GPM Midwest. Hotels and restaurants also are on the list of 348 new direct current fast-charging ports at 87 locations in the state.
The announcements to date are a drop in the bucket for what’s needed. With an estimated 30 million to 42 million plug-in EVs expected to be delivered to consumers and businesses by 2030, the National Renewal Energy Laboratory estimates the nation will need 182,000 DC fast charging plugs to adequately support them.
C-Store Opportunity
Alpharetta, Georgia-based PDI Technologies, a provider of technology services to the convenience-store industry, is taking its own route to encouraging more EV charging plugs at convenience stores and fuel stations with a new communications push designed to provide c-stores with the information they need about growing EV penetration and EV charging.
“As convenience stores remain a steadfast destination offering a wide range of services and amenities, our mission is to deliver up-to-date resources that provide insight into the next evolution of the industry,” PDI said.
PDI’s research suggests consumers want more sustainable products and services, such as EV, presenting a “huge business opportunity” for the convenience industry, the company said. PDI also owns the GasBuddy app, offering rewards at convenience stores and fuel stations.
Consumer Insights
According to its June consumer survey, 70% of respondents are considering buying or leasing an electric vehicle, or already have an EV. About 45% of respondents say their biggest EV concerns are battery charge durations and travel distance.
About 41% of respondents said affordability is the No. 1 consideration when deciding where to recharge and EV.
With 50% of all new cars expected to be electric by 2030, a far wider EV charging network will be necessary than what exists today, the automakers said. They have an ambitious goal, considering about 8,700 EV charging stations with 32,000 charging plugs exist today for 2.3 million EVs, according to the U.S Department of Energy.
While an Environmental Defense Fund report estimates over $21.5 billion in investments supporting about 800,000 EV chargers have been announced since 2021, details about the installations are less clear.
The $21 billion in investments don’t include charging stalls to be constructed at Cumberland Farms, Shell, Wawa, Kroger, Subway and Target, according to the report, U.S. Public Electric Vehicle (EV) Charging Infrastructure Deployment.