Decarbonizing Aviation Ground Operations 2025
Page 19 of 37 · WEF_Decarbonizing_Aviation_Ground_Operations_2025.pdf
While the initial investment on the conversion
of existing diesel buses to electric drivetrains is
€5.11 million for retrofitting, the annual operating
expenditure is €4.95 million, and a 25% salvage
value is assumed.
Retrofitting offers a pragmatic, lower-cost pathway
to electrification, with the lowest initial capital outlay
among all scenarios (see Figure 6). The retrofit cost
is set at 50% of a new electric bus, and 50% of
capex is subsidized by government support. The
scenario assumes a 2:1 bus-to-charger ratio (each
charger supporting two buses) and incorporates a
significant battery replacement cost (35% of bus
price) around the ninth year. While maintenance
costs are slightly higher than for new electric buses,
the overall TCO is close to the battery-electric case,
and potentially lower when factoring in government
incentives, making this scenario particularly
attractive for operators seeking to decarbonize with
limited budgets and minimal operational disruption.
The relatively low electricity and infrastructure
costs further enhance the cost-effectiveness of
this scenario.
If the boundary conditions and the economic
wealth of the airport make it feasible to invest in
a new purpose-built electric bus fleet, the initial
investment is assumed to be €9.3 million for buses
(including approximately €1 million for charging
infrastructure, with the remainder allocated to
vehicle procurement). Annual operating expenditure
is €4.91 million, considering a 25% salvage value at
end-of-life (as in the previous case).
While the upfront investment is higher than for
retrofitting, the new electric fleet benefits from
improved reliability, advanced features and lower
maintenance costs.The electric bus fleet scenario leverages a 3.9%
annual learning rate for e-bus costs and a 50%
government subsidy on capex, which helps offset
the higher initial outlay. Battery replacement is
a significant cost in year nine, where the model
has assumed that this important maintenance is
happening at the same point in time for retrofitted and
electric buses, as the maturity of the technology is
equivalent. TCO per km (see Figure 5) is slightly higher
than in the retrofitted scenario, mainly due to higher
capex, but still substantially lower than diesel or
hydrogen, when factoring in government grants. The
scenario is well-aligned with long-term sustainability
and regulatory objectives, offering a balance between
operational efficiency and environmental performance.
If the technology of choice is hydrogen (supplied
from off-site production), this scenario requires the
highest initial investment, particularly for vehicles and
refuelling infrastructure. The total estimated capex is
€18.47 million, split between €12.52 million for bus
purchase, and €5.96 million for the refuelling station.
Annual opex is €5.45 million, with driver salaries and
hydrogen fuel costs as major contributors. While the
refuelling station’s upfront capex is modest relative
to the bus fleet, its opex remains low. The scenario’s
TCO is driven by high driver costs and the relatively
high cost of hydrogen fuel compared to electricity.
However, hydrogen offers operational flexibility and
rapid refuelling, which may be advantageous for
high-utilization or long-range applications. While the
economics remain challenging without cost reduction
or policy support, potential revenues from carbon
trading mechanisms, such as the European Union’s
Emissions Trading System (ETS)17 could strengthen
the business case. The availability and treatment of
such credits, however, depend on evolving policy
frameworks, and may not apply equally to other
technologies such as battery-electric buses.
Decarbonizing Aviation Ground Operations: Alternative Bus Technologies
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