Asset Management of Electrical Transportation Systems with Life Cycle Cost Analysis for Ground Support Equipment: Case Study Stockholm Arlanda Airport

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IN

DEGREE PROJECT

ELECTRICAL ENGINEERING,

SECOND CYCLE, 60 CREDITS

,

STOCKHOLM SWEDEN 2018

Asset Management of Electrical

Transportation Systems with Life

Cycle Cost Analysis for Ground

Support Equipment: Case Study

Stockholm Arlanda Airport

HAMPUS WIRÉN

KTH ROYAL INSTITUTE OF TECHNOLOGY

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Asset Management of Electrical Transportation

Systems with Life Cycle Cost Analysis for Ground

Support Equipment: Case Study Stockholm

Arlanda Airport

Hampus Wirén

Master Thesis in Electrotechnical Theory and Design

Written at

KTH Royal Institute of Technology

School of Electrical Engineering and Computer Science Department of Electromagnetic Engineering

Examiner

Lina Bertling Tjernberg, Professor, KTH

Stockholm, Sweden, 2018

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Abstract

We have come a long way in the pursuit of reducing our carbon footprint from our way of living, by continuously development of batteries and charging infrastructure for electric vehicles to decrease the demand for fossil fuels, improving the overall energy efficiency and to increase awareness of the problem to the population. One of the industries, that during the last decades has undergone vast improvements, is the development of the airplane engines due to increased emission regulations, for the aviation industry, and to reduce the costs of air travel. Despite tighter regulations, global impact from travelling by air is increasing due to the explosive increase in number of travels and travellers. In order to cope with the situation, it is of course necessary to further develop fuel and emission effective airplanes, but also to study the whole chain of emission sources correlated to the air transport industry. So, while waiting for improved airplanes there are well known emission effective technologies that can be implemented already today – implement electric vehicles as support vehicles at airports.

Today, and throughout history, most of the focus of air travel has been on the airplane itself. This thesis, that was carried out at KTH Royal Institute of Technology during late spring and autumn 2018, did instead study the support vehicles used in airports. In this thesis, a generic economic model was developed in order to estimate the costs involved when replacing traditionally vehicles to suggested electrically propelled alternatives. To test and support the development of an economic model, a case study has been carried out at Stockholm Arlanda Airport. This case study included a field study to the mentioned airport, and in combination with interviews with former employees from one of the ground handling companies that are currently active in the airport. Raw data was collected over the equipment and vehicles currently in use. This data was used to describe the vehicles purpose, requirements and to ensure that the alternative electric vehicles proposed would offer at least the same performance as the traditional vehicles. The developed generic economic model was modulated with five stages that represented a selection of input parameters. The collected data became a result in itself and was used as input to three concurrent theses.

The results from the five stages presents the costs during an investment period of between of one to fifteen years. One of the most significant result could be seen from Stage V. This stage showed that the combined cost to replace all vehicles currently used, with either all new diesel vehicles or electric alternative vehicles, are lower for electric vehicles than for diesel vehicles. Another significant result could be seen from the investigation of Stage IV, Stage IV-B, were the model was modulated to represent the case of replacing a vehicle. The results showed that the Letter and Cargo procedures, that travel the farthest and has the highest fuel consumption of the investigated vehicles, had negative costs through the whole investment period. This means that the expenses will always be lower when these vehicles are replaced. The model was validated through a sensitivity analysis, performed on the discount rates, depreciation rates and as well as costs for battery replacement during the depreciation period.

Keywords:

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Sammanfattning

Vi har kommit långt i vår strävan att minska vårt koldioxidavtryck genom vårat sätt att leva, genom att kontinuerligt utveckla batterier och laddningsinfrastruktur för elfordon med syftet att minska efterfrågan på fossila bränslen, förbättra den totala energieffektiviteten och öka befolkningens medvetenhet om problemet. En av de branscher, som under de senaste decennierna har genomgått stora förbättringar, är utvecklingen av flygplansmotorer och regler för flygplan. Men eftersom antalet flygresenärer fortsätter att öka årligen krävs ytterligare arbete för att förbättra den totala effektiviteten och minska det negativa globala avtrycket från flygresor. Medan väntan på att morgondagens flygplan ska utvecklas så finns det teknik som redan kan appliceras idag – elfordon.

I dag, och genom historien, har det mesta av all fokus för flygresor varit på flygplanen själva. Detta examensarbete, som genomfördes på KTH, Kungliga Tekniska Högskolan, under den senare delen av våren och hösten 2018, utredde istället de fordon som omger ett flygplan, under den tid flygplanet står stilla på en flygplats. Under denna uppsats utvecklades en generisk ekonomiskmodell, med syftet att estimera kostnaderna att ersätta och använda elfordon istället för de nuvarande fordonen. För att utveckla den ekonomiska modellen genomfördes en fallstudie på Stockholm Arlanda Airport. Fallstudien innehöll en fältundersökning till den nämnda flygplatsen, och i kombination med intervjuer med tidigare anställda från ett av de marktjänstföretag som är verksamma på flygplatsen, insamlades rådata om vilken utrustning och fordon som vid tillfället användes. Denna data användes för att beskriva fordonens syfte, vilka krav som ställs på fordonen. Detta var för att säkerställa att det valda elfordonet kunde utföra uppgiften. Den utvecklade generiska ekonomiska modellen modulerades med fem steg, som representerade vilka indataparametrar som bör väljas. De insamlade uppgifterna blev ett resultat i sig och användes som indata till tre samtidiga avhandlingar.

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Acknowledgements

To Professor Lina Bertling Tjernberg for being a source of inspiration. She has always supported me through her enthusiasm, encouragement and professional knowledge. Whom I will always respect and admire. Thank you for your valuable time and for your invitation to the seminar in the Swedish Parliament. A memory and an experience that I always will cherish.

To Fanny Franzén, for the insight and information on the turnaround process at Arlanda.

To Patrik Brauer, for all interesting and valuable discussions, feedback and for your contribution. To the person who encouraged me to apply to KTH and who also has been following the development during my years of study.

To my family, new and old, I would like to express my sincere appreciation for their love and support, for their continuous encouragement to consciously challenge my perceptions and thoughts, and without whom this would not have been viable.

Finally, to the one that I lost. You will never be forgotten.

Hampus Wirén

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List of Abbreviations

AEC All Electric Case

AM Asset Management

AOC Annual Operation Cost

APU Auxiliary Power Unit

ARN Stockholm Arlanda Airport

BC Base Case

CM Corrective Maintenance

CPH Copenhagen Airport, Kastrup

CPI Customer Price Index

CRF Capital Recovery Factor

DRF Depreciation Rate Factor

ET Electrified Transportation

EUR Euro

EV Electric Vehicle

GBP Pound Sterling

GPU Ground Power Unit

GSE Ground Support Equipment

IC Initial Costs

ICEV Internal Combustion Engine Diesel Vehicle

ICEPV Internal Combustion Engine Petrol Vehicle

MB Mercedes-Benz

MATLAB Matrix Laboratory

MEV More Electric Vehicles

OTC One-Time Costs

PM Preventive Maintenance

PVRVF Present Value of the Residual Value Factor

LCC Life Cycle Cost

PVF Present Value Factor

RCAM Reliability Centred Asset Management

RV Residual Value

SAS Scandinavian Airlines

SEK Swedish Krona

TBL TowBarLess

TCO Total Cost of Ownership

USD United States Dollar

¤

Unspecified Currency Sign

VW Volkswagen

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Table of Figures

Figure 1.1 The approach used in this thesis ... 3 Figure 2.1 Example of proposed framework for how TCO can be combined with LCC to evaluate, or compare, the assets with AM. The three different LCC (LCC1, LCC2 and LCC3) can either be used for comparison or compiled. ... 5 Figure 4.1 Stockholm Arlanda Airport aerodrome chart, shows the three runways, four terminals, platforms and the nearby lake Halmsjön [26]. The inside of the red dashed line indicates the Airside

area, the three red solid lines mark the location of the three runways, the blue circle indicate the cargo

centre, inside the green dashed box is the location of the four terminals (Terminal 2, 3, 4 and 5) and the red ring circles platform FA at Terminal 5. ... 13 Figure 4.2 The location of gate 10, platform FA, Terminal 5, at Stockholm Arlanda Airport [26]. ... 14 Figure 4.3 Standard position of GSE and vehicles involved in the turnaround process of an. See TABLE 4-1 for acronym explanation. The red lines indicate the secure area that is not to be crossed until the airplane’s engine is turned off. Mended from [33]. ... 15 Figure 4.4 Timeline over the procedure activity. The timeline illustrates when the vehicle starts to travel towards gate 10 to start their respective procedure, during the period the procedure is ongoing or actively working on the airplane and when the vehicle starts their travel back to the starting point [i-1]. ... 22 Figure 5.1 An overview of the operational cycle used during the case study application [9]. ... 23 Figure 6.1 Comparison of the annual vehicle costs, for the current ICEVs and replacement EVs, split by cost category per vehicle for each procedure. The order of how the procedures are listed, is the same for both “Diesel Vehicles” and “Electric Vehicles”: Letter, Cargo, Airplane Cleaning, Flight Crew,

Refuel, Gate Coordinator, Technician and Pushback, presented in EUR. ... 28

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Figure 6.8 The present value of the TCO for Stage IV-A, presented in EUR during a fifteen-year period and with a discount rate of 4%. ... 32 Figure 6.9 Top: The annual costs in present value from Stage IV-A. Bottom: The accumulated annual costs in present value from Stage IV-A, both is presented in EUR during a fifteen-year period and with a discount rate of 4%. ... 32 Figure 6.10 The present value of the TCO for Stage IV-B, presented in EUR during a fifteen-year period with a discount rate of 4%. ... 33 Figure 6.11 Top: The annual costs in present value from Stage IV-B. Bottom: The accumulated annual costs in present value from Stage IV-B, both is presented in EUR during a fifteen-year period and with a discount rate of 4%. ... 33 Figure 6.12 Comparison of the annual costs in Stage V, illustrating the combined costs collected from all procedures except the Pushback, presented in EUR for each year during a period of fifteen years. . 34 Figure 6.13 Comparison of the annual costs in Stage V, illustrating the cost categories that build up the combined costs from all procedures except the Pushback, presented in EUR for each year during a period of fifteen years. ... 35 Figure 6.14 Comparison of the annual costs in present value for Stage V, illustrating the combined costs from all procedures except the Pushback, presented in EUR for each year during a fifteen-year period and with a discount rate of 4%. ... 35 Figure 6.15 Comparison of the combined annual and total annual costs in present value for Stage V, illustrating the combined costs from all procedures except the Pushback, presented in EUR for each year and with a discount rate of 4%. Note that the first bar, named Total, represents the sum of the annual costs represented in the bars during the fifteen-year period. ... 36 Figure 6.16 Comparison of the combined annual and total annual costs in present value for Stage V, illustrating the cost categories that build up the combined costs from all procedures except the Pushback, presented in EUR for each year and with a discount rate of 4%. Note that the first bar, named Total, represents the sum of the annual costs represented in the bars during the fifteen-year period. ... 36 Figure 6.17 Sensitivity analysis of the discount rate, by comparing the behaviour when the discount rate is set as: 2%, 4% and 8%. Top-left: CRF. Top-right: PVF. Bottom: CRF and PVF in the same figure to analyse the parameter sensitivity. ... 38 Figure 6.18 Sensitivity analysis of the discount rate, compared with the results from Stage IV. Top: Stage IV compared with an increased discount rate r=8%. Bottom: Stage IV compared with a

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Figure 6.22 The TCO from the sensitivity analysis of Stage IV, calculated and compared between the

two estimated cost for a battery replacement. ... 41

Figure B-1 The estimated cost of diesel fuel with implemented annual tax increase, presented in EUR ...50

Figure B-2 The estimated cost of electric energy with implemented annual tax increase, presented in EUR ...50

Figure B-3 The estimated cost of replacement battery, presented in EUR ... 51

Figure B-4 Comparison of the annual costs in present value for Stage V, illustrating the combined costs from all procedures, presented in EUR for each year during a fifteen-year period and with a discount rate of 4%. ... 52

Figure B-5 Comparison of the combined annual costs in present value for Stage V, illustrating the cost categories that build up the combined costs from all procedures, presented in EUR for each year and with a discount rate of 4%. ... 52

Figure B-6 Comparison of the combined annual and total annual costs in present value for Stage V, illustrating the combined costs from all procedures, presented in EUR for each year and with a discount rate of 4%. Note that the first bar, named Total, represents the sum of the annual costs represented in the bars during the fifteen-year period. ... 53

Figure C-1 Timeline for the estimated released emissions during on one turnaround. Orange – CO, Olive – CO2_{and Cyan – NO}_X_{... 55}

Figure C-2 Timeline for the diesel fuel usage during one turnaround... 55

Figure D-1 Measured travel distance to gate 10, covered by the Letter procedure [49] ... 56

Figure D-2 Measured travel distance to gate 10, covered by the Cargo procedure [49] ... 56

Figure D-3 Measured travel distance to gate 10, covered by the Airplane Cleaning procedure [49]... 57

Figure D-4 Measured travel distance to gate 10, covered by the Flight Crew and Gate Coordinator procedures [49] ... 57

Figure D-5 Measured travel distance to gate 10, covered by the Technician procedure [49] ... 57

Figure D-6 Measured travel distance to gate 10, covered by the Pushback procedure [49] ... 58

Figure D-7 Pushback procedure of an airplane out from gate 10 [34]... 58

Figure D-8 Close-up of pushback procedure of an airplane out from gate 10 [34]... 59

Figure D-9 Measured distance for the Pushback procedure of an airplane out from gate 10 [49]. Distance when high engine load is applied. ... 59

Figure E-1 Comparison of the annual costs in present value, between the diesel and electric vehicles used during the Letter procedure for Stage V ... 60

Figure E-2 Comparison of the annual costs in present value, between the diesel and electric vehicles used during the Cargo procedure for Stage V... 60

Figure E-3 Comparison of the annual costs in present value, between the diesel and electric vehicles used during the Airplane Cleaning procedure for Stage V ... 60

Figure E-4 Comparison of the annual costs in present value, between the diesel and electric vehicles used during the Flight Crew procedure for Stage V ... 60

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List of Tables

TABLE 3-1 Required parameters to calculate the fuel consumption ... 9

TABLE 3-2 Required parameters to calculate the future annual fuel price exclusive of VAT ... 10

TABLE 3-3 Required, and resulting, cost parameters and symbol explanation ... 12

TABLE 4-1 Acronyms and colour explanation of the GSE and vehicles in Figure 4.3 ... 15

TABLE 4-2 Parameters used to calculate the one-time costs ... 19

TABLE 4-3 Parameters used to calculate the diesel fuel consumption ... 19

TABLE 4-4 Initial values to calculate the future annual fuel price exclusive of VAT ... 21

TABLE 4-5 Parameters used to calculate the consumption of electric energy ... 22

TABLE 5-1 Overview of the input and output parameters for all stages ... 25

TABLE 6-1 Description of the symbols presented in the results from Stage III to IV-B ... 27

TABLE 6-2 Original, increased and decreased value of the parameters during the sensitivity analysis 37 TABLE A-1 Input data for the ICEVs ... 47

TABLE A-2 Input data for the replacement EVs ... 48

TABLE A-3 Currency exchange rate used for currency conversion ... 49

TABLE A-4 The approximated initial cost and the new tax costs that are implemented in Stage V. [50] is used for tax calculation ... 49

TABLE B-1 Battery replacement cost at year eight and sixteen ... 51

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1 CHAPTER 1. INTRODUCTION

Chapter 1

Introduction

1.1 Background

Last year Sweden’s commercial airports served close to 42 million passengers, ensured a landing-frequency of over 250,000 flights, and handled over 135,000 tons of cargo [1], [2]. Over the last 50 years, the fuel efficiency for airplanes have been improved with 70% [3], mainly to reduce the costs of air travel, but during the last decade has been focused on reducing the levels of carbon dioxide emissions released. Even though there has been a substantial progress in fuel economy regarding airplanes, the logistics behind the airplanes could further be improved.

The development of airplanes has come a long way since the Wright brothers’ first flight in the beginning of the 20th_{century. During World War I (WWI), extensive experimenting was carried out on airplane’s} propulsion and aerodynamics in order to improve the agility, range, and speed. Following WWI, the number of airlines and airports grew substantially. During World War II (WWII), numerous airlines and airports supported the military and therefore momentarily cancelled all commercial traffic. The modern aviation commenced the years after WWII and required the airports to be built at a greater extent, increasing in size, and became increasingly complex. By building larger airports, the landing- and passenger-frequency for the airports increased and required extensive logistical support.

Today, National Aeronautics and Space Act (NASA) has set a goal for 2030 to improve the efficiency for aircrafts by reducing: Fuel burnt -70%, cruise emissions -70%, NOx -75%, and noise -40dB [4]. To meet the goals set by NASA, big airplane manufactories work in collaboration with jet engine manufactories and technology companies, to develop the airplanes for tomorrow. An example of such collaboration is the one between Airbus, Rolls Royce, and SIEMENS [5].

With tomorrow’s airplanes being developed today, the ground handling for the airplanes and involved logistics on airports, have yet to receive the same equipment update. For example, at Stockholm Arlanda Airport, Sweden’s largest airport, the final step in the logistics for handling the passengers’ luggage, loading the luggage into airplanes, is done using three methods that are inefficient from different aspects:

• Manual loading for each bag of the luggage, mostly used for domestic flights.

• Medium sized containers containing luggage, loaded with diesel trucks, used for international flights. • Big containers containing luggage, loaded with big diesel trucks, used for international flights. The first method is time-inefficient and often causes a delay on Sweden’s domestic flights due to the slow and tedious work of loading the luggage one bag at the time. The second and third method uses an efficient loading procedure but are inefficient by using big diesel engines.

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AB Volvo, Göteborgs Energi elnät, Sweco, Vattenfall and Volvo Cars, have collaborated to investigate what is required to electrify the transport system with a case study on Gothenburg [7].

1.2 Related Work

This project has been part of the Reliability Centred Asset Management (RCAM) research group at KTH and the new research theme on Electrified Transportation (ET) referred to as RCAM/ET led by Professor Lina Bertling Tjernberg. The overall long-term goal of this project is to contribute with new methods for infrastructure asset management that focus on the new developments of the infrastructure for energy, i.e. the electric power system, and electrified transportation. “Infrastructure asset management can be expressed as the combination of management, financial, economic and engineering, applied to physical assets with the objective of providing the required level of service in the most cost-effective manner. It includes management of the whole lifecycle of a physical asset from design, construction, commission, operation, maintenance, modification, decommissioning, and disposal. It covers budget issues and focuses on asset management of an infrastructure for energy, e.g. the electric power system” [8].

The overall objectives of the research are to; contribute to a secure and high level of reliability in electricity supply, an efficient use of energy resources and to reduce the use of fossil fuels. During the project, five related projects have been performed; two focusing on asset management of ground transportation systems [9], two on battery storage [10], [11], and one on electrified airplanes [12]. The latter is co-supervised by industrial PhD student Andreas Johansson at SAAB. There has been a reference group related to the project on battery storage with members from ABB, Vattenfall and battery researchers at KTH and Uppsala. The project has included a study visit at E-ways, learning about a new technology for electrical roads.

1.3 Thesis Scope and Objective

The scope of this thesis focuses on how air travel can become a member of a more sustainable society by investigating the costs of reducing the usage of fossil fuel from the vehicles that is involved during an airplane’s turnaround process, the time-period at which the airplane is standstill at an airport gate between landing and take-off.

The objective is to, with the help of a case study, investigate the costs of an existing vehicle-fleet and to develop a generic model, that is used as an aid to analyse the cost-efficiency of electrifying the studied vehicle-fleet. The target is to gather and utilise real-world data, and with the possibility of evolving comprehensive information, the boundaries of this thesis are set as:

• Include vehicles that have an alternative electric vehicle available, or is soon to be released, since the purchase costs are to be included in the generic model.

• A set route for each vehicle. The set route is decided with their home-base as starting point and include the distance to the airplane and back, and each vehicle are only driven once during the hour-long turnaround process. This is to eliminate eventual route variations before arriving to the airplane or returning to their home-base.

• No variation in weather conditions, meaning that no additional equipment, that deviates from the everyday equipment, is used.

1.4 Purpose

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of flying. During 2017, the vehicles at Stockholm Arlanda Airport used 1777 m3 _{of diesel fuel [13].} Therefore, is the purpose of this thesis to develop a model that investigates the cost of using electric vehicles as a method to reduce the global impact from air-travel.

1.5 Approach

With the thesis objective to develop a generic model that could be used to estimate the cost for replacing the current vehicles with electric alternatives, and to also include the usage costs, when used as the vehicles surrounding an airplane, during a turnaround process. The approach of the thesis follows the concept in Figure 1.1.

Figure 1.1 The approach used in this thesis

The first step of the approach is to get an understanding of the current situation and included a field study to a nearby airport to investigate and describe the equipment that is in use today. To evaluate the costs, a generic model is developed with the help of a case study. The case study includes a set of stages that described what parameters should be included and applied to the developed model. The model combined the selected parameters, with the information gathered from the airport field study. The model output consists of fuel usage, emissions and costs for each stage in all cases.

1.6 Disposition

The thesis is disposed of seven main chapters and are briefly described as:

• Chapter 2. Theory – A brief explanation of Asset Management, Life Cycle Costs and Total Cost of Operation.

• Chapter 3. Method – Explains how fundamental economic tools are combined to create the generic model that is to be modulated for the case study.

• Chapter 4. Case Study Description – Introduces and describes the procedures and vehicles that are to be investigated.

• Chapter 5. Case Study Application – Case and stage description that decide how the input parameters is used for model manipulation.

• Chapter 6. Case Study Implementation – Presentation, validation and analysation of the results from the stages in the case study application.

• Chapter 7. Conclusion – The final conclusion and future work is presented.

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4 CHAPTER 2. THEORY

Chapter 2

Theory

2.1 Asset Management

The target of Asset Management (AM) is to answer the question of how to maintain and monitor physical assets to best cohere with the overall goal or purpose [14]. Where possible goals could be to maximise asset value, risk and failure elimination, or to minimise the existing, or future, costs. The strategy of what actions are most suitable to proceed with, depends on the overall goal. Acquire, adapt, maintain or replace, are possible actions. To decide on what action to proceed with, the proper information must be gathered to set the foundation on which the decision is made. Examples of information needed for assessment:

• Data about the current condition • Rate of failure

• Maintenance costs • Running costs • Costs during failure

Depending on the purpose, various methods is used for evaluation. With the help from these methods, the gathered information on the existing equipment is compared and assed. From these assessments a foundation on which a decision that best answer the question of which action to proceed with, can be made.

2.2 Life Cycle Cost

A method used during AM, to help assess the gathered information, is Life Cycle Cost (LCC). LCC is a method used for estimation of the lifetime cost for an investment and is an important tool for evaluating of future investments that lack direct earnings. LCC includes the cost from planning, purchase, annual operation, infrastructural adaptation, maintenance and sale value. For an eventual investment or investigate cost efficient maintenance schedules, the cost categories are divided into a breakdown structure where each level in the breakdown structure explains the origin of the cost. LCC analyses often utilises the present value and is used to find the present value of future investments or the combined annual costs.

2.3 Total Cost of Ownership

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5 CHAPTER 2. THEORY

Figure 2.1 Example of proposed framework for how TCO can be combined with LCC to evaluate, or compare, the assets with AM. The three different LCC (LCC1, LCC2 and LCC3) can either be used for comparison or compiled.

The example in Figure 2.1 demonstrates how TCO can be included in an LCC for upgrading a vehicle fleet. During the process of purchasing vehicles, a customer is utilised and the TCO is estimated for each vehicle, by adding the cost from each cost sub-category. The listed sub-categories are:

• Purchase costs for a new vehicle

• Residual value at the end of the investment period • Annual Costs that are the combined Tax and Fuel • Maintenance consists of two maintenance strategies:

- Preventive (PM) is the maintenance that is scheduled to be performed after a criterion, e.g.

mileage or elapsed time from previous maintenances.

- Corrective (CM) is the maintenance that is performed when as fault has occurred.

The vehicle-specific TCOs can be combined into a total TCO for all vehicles. For any additional cost that is required to adapt existing, or acquire new, equipment (such as rebuilding garages, storage facilities or install electric vehicle chargers) should be included in the suggested infrastructural adaptation category. These costs are not included in the TCO but should be included in the total LCC analysis. The LCC analysis is therefore used while upgrading the vehicle fleet, since the LCC includes the TCO from all vehicles and eventual infrastructural adaptation. The results from the LCC, can be compared with competing, or compiled, LCCs (LCC1, LCC2 and LCC3) for evaluation during the AM process.

AM

𝐿𝐶𝐶

₁ Infrastructural adaptation ෍ 𝑘=1 𝑛 𝑇𝐶𝑂(𝑘)

Purchase costs Maintenance

Preventive Corrective

Residual value Annual costs

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6 CHAPTER 3. METHOD

Chapter 3

Method

This chapter presents the developed generic model, that were used to for the LCC analysis. This chapter also explains the fundamental theory, and how they are combined to develop the generic method that was used to the estimate the LCC during the case study application.

3.1 LCC

Within this thesis, the developed generic LCC-models estimates the costs spent over a certain time period and comprises of the following two equations:

𝐿𝐶𝐶𝑇𝐶𝑂(𝑦𝑟) = ෍ 𝐶𝑇𝐶𝑂(𝑘, 𝑦𝑟) 𝑛 𝑘=1 [¤] (1) 𝐿𝐶𝐶𝐴𝑁𝑁(𝑦𝑟) = ෍ 𝐶𝐴𝑁𝑁(𝑘, 𝑦𝑟) 𝑛 𝑘=1 [¤] (2)

In literature, TCO is a commonly used expression when referring to the cost of a new purchase, such as a new vehicles [15], [16]. (1) calculates the present value of the total costs, with the present year (2018) set as the investment starting point, the residual year set as the investment length and the combined

Annual Operation Cost (AOC) for the entire investment length. The results from (1) will present the

TCO, by year for the entire investment length. (2) calculates the investments annual cost, if the Initial

Cost (IC), were to be divided up for equal annual payments during the investment length with including

AOC. The LCC in this thesis is the analysis of (1) and (2) combined for all vehicles.

The LCC-model was developed through a case study that represented the current situation at Stockholm Arlanda Airport. The data used as input parameters to the model were collected from a field study at Arlanda and with interviews with former GSE-personnel at Arlanda. Observations during the field study contributed to the parameters on vehicle usage, and their stated route. From the vehicle observations at Arlanda, the specific vehicle parameters of consumption, emission and tax, were gathered from the Swedish Transport Agency database [17]. The Swedish Transport Agency is the agency responsible for the regulations regarding air, sea and road transport, and to ensure that the regulations are abided.

3.2 Model

The model was developed by categorising the gathered data and combining fundamental economic technics used for cost analysis. This model utilises two of the most fundamental methods for economic analysis: Present Value Factor (PVF) and Capital Recovery Factor (CRF). The PVF is used to calculate the present value of a future payment and is defined as:

𝑃𝑉𝐹(𝑦𝑟, 𝑟) = 1

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7 CHAPTER 3. METHOD

where 𝑟 is the discount rate and 𝑦𝑟 is the compounding time-period, in years. The PVF utilises the discount rate, a reverse interest rate, together with the compounding years until the future expected payment, to calculate the factor that represents how the rate of the future sale is worth at present time. The CRF is derived from the present value factor and is defined as:

𝐶𝑅𝐹(𝑦𝑟, 𝑟) = 𝑟 ∙ (1 + 𝑟)

𝑦𝑟

((1 + 𝑟)𝑦𝑟_{− 1)} [%] (4)

The CRF can be used either to calculate the present value of annual payments, or it can calculate the annual payments that are required for an investment in present time. With the compounding time-period, in years, and the discount rate, the capital recovery factor is a powerful tool in evaluating present, or future, income or costs.

3.2.1 One-Time Costs

To calculate the TCO for a vehicle, during the expected time-period of which the vehicle is intended to be used, the vehicles (IC), expected Residual Value (RV) and the annual upkeep costs is required to be decided for the One-Time Costs (OTC). For the IC, this model implemented subsidies that are received from purchasing electric vehicles. The subsidies are removed from the IC before further calculations were made. For the vehicles that yet had received a listing price, a price was estimated based on the current listing price of the corresponding petrol or diesel vehicle.

The RV of the vehicle can be estimated with a depreciation rate. The depreciation rate is the rate at which the value of the vehicle annually decreases after purchase. From [18] the vehicles depreciation rate are country-dependent and should therefore be chosen accordingly. The annual depreciation rate,

𝛿,

was used to calculate the Depreciation Rate Factor (DRF). The DRF is defined as:

𝐷𝑅𝐹(𝑦𝑟, 𝑑𝑟) = 𝑒−𝛿∙𝑦𝑟 [%] (5)

with the assumption that all vehicles have the same depreciation rate, the DRF was calculated annually. The IC is used in combination with the DRF to estimate the vehicles future RV:

𝑅𝑉(𝑦𝑟, 𝛿) = 𝐼𝑐∙ 𝐷𝑅𝐹 [¤] (6)

where

𝐼

𝑐 is the IC. By combining (6) and (3), gives the Present Value of the Residual Value Factor

(PVRVF):

𝑃𝑉𝑅𝑉𝐹(𝑦𝑟, 𝑟, 𝛿) = 𝐷𝑅𝐹 ∙ 𝑃𝑉𝐹 [%] (7)

The PVRVF can then be used to calculate the OTC (𝐶𝑂𝑇). The 𝐶𝑂𝑇 is the IC, combined with the subsidy 𝑠

and RV, presented in present time:

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8 CHAPTER 3. METHOD

3.2.2 Annual Operating Cost

AOC is the combined costs for a vehicle, for the specific year. The AOC will include the cost of diesel fuel, electric energy, service costs, taxes and the cost for a replacement battery.

3.2.2.1 Fuel Consumption Costs

The annual costs of diesel fuel, and the electric energy that is drawn from the grid, is calculated using the travel distance during one turnaround, multiplied with the consumption per kilometre. The total diesel fuel consumption for the Internal Combustion Engine Diesel Vehicle (ICEV), during one turnaround, was calculated as:

𝜀𝐼𝐶𝐸𝑉= 𝑑𝑡𝑢𝑟𝑛∙ 𝜇𝐼𝐶𝐸𝑉 [𝑙] (9)

where 𝑑𝑡𝑢𝑟𝑛 is the vehicle travel distance during one turnaround, and 𝜇𝐼𝐶𝐸𝑉 is the fuel consumption as

listed on the Swedish Transport Agency database. For vehicles, and non-road vehicles, that did not have the fuel consumption listed, the engines emission standard was used [19], [20]. Engines that are certified with a specific emission standard must meet the requirements for that emission standard. Therefore, could the engines emission standard be used to calculate the consumption. With the fuel usage per power output [20], and diesel fuel density [21], the consumption per kilometre was derived as:

𝜇𝐼𝐶𝐸𝑉=

𝑃𝑟𝑎𝑡𝑒𝑑∙ 𝛾 ∙ 𝜂

𝜌 ∙ 𝑣 [𝑙/𝑘𝑚] (10)

To calculate the energy drawn from the grid, the EVs electric energy consumption was calculated, from the grid to electric motor. The energy demand from the grid was calculated and with an approximated efficiency factor applied to the EVs energy. The electric energy drawn from the grid during one turnaround was calculated as:

𝜇𝐸𝑉= 𝐸𝑏𝑎𝑡𝑡∙ 𝑑𝑟𝑎𝑛𝑔𝑒 [𝑊ℎ/𝑘𝑚] (11)

𝜀𝐸𝑉=

𝑑𝑡𝑢𝑟𝑛∙ 𝜇𝐸𝑉

𝜙 [𝑊ℎ] (12)

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9 CHAPTER 3. METHOD

TABLE 3-1

Required parameters to calculate the fuel consumption

Description Symbol Unit

Fuel used per kWh produced 𝛾 [𝑔/𝑘𝑊ℎ]

Engine – Rated power 𝑃𝑟𝑎𝑡𝑒𝑑 [𝑘𝑊]

Engine – Load 𝜂 [%]

Diesel density 𝜌 [𝑔/𝑙]

Speed 𝑣 [𝑘𝑚/ℎ]

Turnaround distance 𝑑𝑡𝑢𝑟𝑛 [𝑘𝑚]

Diesel consumption 𝜇𝐼𝐶𝐸𝑉 [𝑙/𝑘𝑚]

Turnaround diesel consumption 𝜀𝐼𝐶𝐸𝑉 [𝑙/𝑡𝑢𝑟𝑛]1

Electric energy consumption 𝜇𝐸𝑉 [𝑊ℎ/𝑘𝑚]

Turnaround energy consumption 𝜀𝐸𝑉 [𝑊ℎ/𝑡𝑢𝑟𝑛]1

Battery capacity 𝐸𝑏𝑎𝑡𝑡 [𝑘𝑊ℎ]

Battery range 𝑑𝑟𝑎𝑛𝑔𝑒 [𝑘𝑚]

Efficiency factor 𝜙 [%]

3.2.2.2 Future Fuel Costs

The future fuel costs are estimated by a scaling factor for the annual tax increase for energy and carbon tax. The scaling factor can be set to the follow the inflation or with a set value that follow the statutory regulations. The estimated future costs do not consider other factors that could influence the diesel fuel costs to increase further.

𝑝𝑑𝑖𝑒𝑠𝑒𝑙(𝑦𝑟 + 1) = 𝑇𝐸(𝑦𝑟) + 𝑇𝐶𝑂2(𝑦𝑟)) ∙ 𝜙𝐷+ 𝑝𝑑𝑖𝑒𝑠𝑒𝑙(𝑦𝑟) [¤/𝑙] (13)

𝑝𝑒𝑙(𝑦𝑟 + 1) = 𝑇𝐸(𝑦𝑟) ∙ 𝜙𝐸+ 𝑝𝑒𝑙(𝑦𝑟) [¤/𝑀𝑊ℎ] (14)

For the parameters used in (13) and (14), see TABLE 3-2.

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10 CHAPTER 3. METHOD

TABLE 3-2

Required parameters to calculate the future annual fuel price exclusive of VAT

Price of diesel fuel 𝑝𝑑𝑖𝑒𝑠𝑒𝑙 [¤/𝑙]

Combined energy and carbon tax 𝑇𝐸+ 𝑇𝐶𝑂2 [¤/𝑙]

Scaling factor for the tax increase

of diesel fuel 𝜙𝐷 [%]

Price of electric energy 𝑝𝑒𝑙 [¤/𝑀𝑊ℎ]

Energy tax 𝑇𝐸 [¤/𝑀𝑊ℎ]

Scaling factor for the tax increase

of electric energy 𝜙𝐸 [%]

Discount rate 𝑟 [%]

With (13) and (14), can the fuel costs per turnaround be calculated:

𝐶𝑑𝑖𝑒𝑠𝑒𝑙= 𝑝𝑑𝑖𝑒𝑠𝑒𝑙∙ 𝜀𝐼𝐶𝐸𝑉 [¤/𝑡𝑢𝑟𝑛]1 (15)

𝐶𝑒𝑙= 𝑝𝑒𝑙∙ 𝜀𝐸𝑉 [¤/𝑡𝑢𝑟𝑛]1 (16)

3.2.2.3 Battery Replacement Cost

In literature, the cost of a replacement battery is assumed to be annually decreasing, and with the approximation of current battery price as USD 300/𝑘𝑊ℎ and estimated future battery cost in [22], is modified and used as:

𝐶𝑘𝑊ℎ(𝑦𝑟) = 0.6981 ∙ 𝑦𝑟2− 27.404 ∙ 𝑦𝑟 + 304 [¤/𝑘𝑊ℎ] (17)

With the battery lifespan set to 𝑛 years, cost for a replacement battery is added every 𝑛𝑡ℎ year. Costs for

a replacement battery is estimated with (17), multiplied with the vehicle specific battery capacity 𝐸𝑏𝑎𝑡𝑡,

and is defined as:

𝐶𝑏𝑎𝑡𝑡𝑒𝑟𝑦(𝑦𝑟) = 𝐶𝑘𝑊ℎ∙ 𝐸𝑏𝑎𝑡𝑡 [¤] (18)

3.2.2.4 Tax and Maintenance Costs

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was assumed to include all maintenance, tyre and service costs required. The cost for one turnaround was calculated as:

𝐶𝑡𝑚 = 𝐶𝑚∙ 𝑑𝑡𝑢𝑟𝑛+

𝐶𝑡𝑎𝑥

𝑁𝑎𝑛𝑛𝑢𝑎𝑙

[¤/𝑡𝑢𝑟𝑛] 1 ₍₁₉₎

where 𝐶𝑚 is the maintenance costs per kilometre driven, 𝐶𝑡𝑎𝑥 is the annual tax and 𝑁𝑎𝑛𝑛𝑢𝑎𝑙 is the number

of turnarounds for one year.

3.2.2.5 Total AOC

When all costs per turnaround are added, the AOC per turnaround, month and annual is defined as:

𝐶𝑇(𝑦𝑟) = 𝐶𝑑𝑖𝑒𝑠𝑒𝑙+ 𝐶𝑒𝑙+ 𝐶𝑏𝑎𝑡𝑡𝑒𝑟𝑦+ 𝐶𝑠 [¤/𝑡𝑢𝑟𝑛] 1 (20)

𝐶𝑀𝑂(𝑦𝑟) =

𝐶𝑇

12∙ 𝑁𝑎𝑛𝑛𝑢𝑎𝑙 [¤/𝑚𝑜𝑛𝑡ℎ] (21)

𝐶𝐴𝑂(𝑦𝑟) = 𝐶𝑇∙ 𝑁𝑎𝑛𝑛𝑢𝑎𝑙 [¤/𝑦𝑟] (22)

Where 𝐶𝑇 is the operational cost for one turn during a specific year, 𝐶𝑀 the monthly costs during a

specific year, and 𝐶𝐴𝑂 the cost of annual operation for that specific year.

3.2.3 TCO-Model

To calculate the cost over a time-period, two different TCO-models were created by combining (4), (8), and (22), this resulted in the accumulated TCO (𝐶𝑇𝐶𝑂) and the annual cost of the investment length

(𝐶𝐴𝑁𝑁): 𝐶𝑇𝐶𝑂(𝑦𝑟, 𝑟, 𝛿 ) = 𝐶𝑂𝑇+ 𝐶𝐴𝑂 𝐶𝑅𝐹 [¤] (23) 𝐶𝐴𝑁𝑁(𝑦𝑟, 𝑟, 𝛿 ) = 𝐶𝑂𝑇∙ 𝐶𝑅𝐹 + 𝐶𝐴𝑂∙ 𝑃𝑉𝐹 [¤/𝑦𝑟] (24) ෍ 𝐶𝐴𝑁𝑁(𝑦𝑟) = 𝐶𝐴𝑁𝑁(𝑦𝑟) ∙ 𝑦𝑟 _[¤] (25)

It is important to note that is the annual cost if the 𝐶𝑂𝑇 is set to be divided up with annual payments

during the investment length, with 𝐶𝐴𝑂 included in the annual cost and (25) is the total costs during

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TABLE 3-3

Required, and resulting, cost parameters and symbol explanation

One-time cost 𝐶𝑂𝑇 [¤]

Diesel fuel costs 𝐶𝑑𝑖𝑒𝑠𝑒𝑙 [¤/𝑡𝑢𝑟𝑛] 1

Electric energy costs 𝐶𝑒𝑙 [¤/𝑡𝑢𝑟𝑛] 1

Future battery cost 𝐶𝑘𝑊ℎ [¤/𝑘𝑊ℎ]

Battery replacement cost 𝐶𝑏𝑎𝑡𝑡𝑒𝑟𝑦 [¤]

Annual taxes 𝐶𝑡𝑎𝑥 [¤/𝑦𝑟]

Maintenance cost 𝐶𝑚 [¤/𝑘𝑚]

Combined cost of tax and maintenance 𝐶𝑡𝑚 [¤/𝑡𝑢𝑟𝑛] 1

The total vehicle cost for one turnaround,

during a specific year 𝐶𝑇 [¤/𝑡𝑢𝑟𝑛]

1

The total vehicle cost for one month, during a

specific year 𝐶𝑀𝑂 [¤/𝑚𝑜𝑛𝑡ℎ]

The total vehicle cost for one specific year 𝐶𝐴𝑂 [¤/𝑦𝑟]

Present value of the TCO, including AOC 𝐶𝑇𝐶𝑂 [¤]

Present value of the annual costs with the

one-time cost included in AOC as annual payments 𝐶𝐴𝑁𝑁 [¤/𝑦𝑟]

The present value of the TCO if the IC is set as

annual payments ෍ 𝐶𝐴𝑁𝑁 [¤]

The final LCC for 𝐶𝑇𝐶𝑂 is derived by adding the costs for all 𝑛 vehicles on the investment end-year (𝑦𝑟𝑒𝑛𝑑),

and for 𝐶𝐴𝑁𝑁 the cost for all 𝑛 vehicles are added for each year of the investment length:

𝐿𝐶𝐶𝑇𝐶𝑂(𝑦𝑟𝑒𝑛𝑑) = ෍ 𝐶𝑇𝐶𝑂(𝑘, 𝑦𝑟𝑒𝑛𝑑) 𝑛 𝑘=1 [¤] (1) 𝐿𝐶𝐶𝐴𝑁𝑁(𝑦𝑟) = ෍ 𝐶𝐴𝑁𝑁(𝑘, 𝑦𝑟) 𝑛 𝑘=1 𝑦𝑟 = 1,2, … , 𝑦𝑟𝑒𝑛𝑑 [¤] (2)

3.2.4 Currency Conversion

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13 CHAPTER 4. CASE STUDY DESCRIPTION

Chapter 4

Case Study Description

This chapter describes the case study that was used to develop the LCC-model. The case study represents the current situation at Arlanda airport. The data used as input parameters to the model were collected during a field study at Arlanda and with interview a with former GSE-personnel at Arlanda [i-1]. Observations during the field study contributed to the data on vehicle usage, and their stated route. From the vehicle observations at Arlanda, the vehicles registered data, of consumption, emissions and taxes, could be gathered from the Swedish Transport Agency. The Swedish Transport Agency is the agency responsible for the regulations regarding air, sea and road transport, and to ensure that the regulations are abided.

Figure 4.1 Stockholm Arlanda Airport aerodrome chart, shows the three runways, four terminals, platforms and the nearby lake Halmsjön [26]. The inside of the red dashed line indicates the Airside area, the three red solid lines mark the location of the three runways, the blue circle indicate the cargo centre, inside the green dashed box is the location of the four terminals (Terminal 2, 3, 4 and 5) and the red ring circles platform FA at Terminal 5.

4.1 Stockholm Arlanda Airport

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water from Halmsjön [13], and the jet fuel is delivered by train to a nearby area and the final distance through a pipeline. See Figure 4.1 for an aerodrome chart of Stockholm Arlanda Airport.

4.1.1 Flight and Airplane type

The flight chosen for the case study, is a flight between Stockholm Arlanda Airport and Copenhagen Airport, Kastrup by Scandinavian Airlines (SAS). With SAS main hub located at Kastrup, the flight to Kastrup is one of the most frequent flight from Sweden’s biggest airport, that during 2017 flew over 1.5 million passengers. This flight is chosen for its flight frequency and that the procedure for the arriving and the departing flights can be assumed to be identical due to the passengers’ travel to Kastrup in business or to connecting flights. The Airbus A320neo is a narrow-body twin-engine jet airliner [29], [30] and is more fuel efficient and quieter than its predecessor. With SAS decision to transition their aircraft fleet to only use the Airbus A320neo on the short haul flights by 2023 [31],[32] and is therefore one of the airplanes that are frequently used for this flight. During the time the airplane is stationary at Arlanda, the airplane is assumed to be docked at Terminal 5, platform FA at gate 10, see Figure 4.2.

Figure 4.2 The location of gate 10, platform FA, Terminal 5, at Stockholm Arlanda Airport [26].

4.2 Ground Services Technical System

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Figure 4.3 Standard position of GSE and vehicles involved in the turnaround process of an. See TABLE 4-1 for acronym explanation. The red lines indicate the secure area that is not to be crossed until the airplane’s engine is turned off. Mended from [33].

TABLE 4-1

Acronyms and colour explanation of the GSE and vehicles in Figure 4.3

Colour Acronym Description Purpose Diesel Electric

AC Airplane Cleaning Vehicle Airplane – Maintenance X - BT-L Baggage Truck - Load Baggage – From terminal - X BT-O Baggage Truck - Unload Baggage – To terminal - X CB Conveyor Belt Baggage – Loading/Unloading - X

CT Catering Truck Airplane – Resupply X -

CV Cargo Vehicle Baggage – Cargo X -

FC Flight Crew Vehicle Airplane – Crew X -

GATE Gate Arm Airplane – Gate connector - -

GC Gate Coordinator Airplane – Responsible X - GPU Ground Power Unit Airplane – Resupply - X

LAV Lavatory Truck Airplane – Maintenance X -

LV Letter Vehicle Baggage – Letter X -

RF Hydrant Refuel Truck Airplane – Resupply X - TBL Pushback Truck Airplane – Disembarking X X TV Technician Vehicle Airplane – Maintenance X -

WV Water Vehicle Airplane – Resupply X -

4.2.1 Incoming flight

After landing, the airplane taxis into the assigned gate. When the airplane has stopped at the gate, the chocks are placed at the airplanes front and rear landing gear wheels, to prevent it from moving, the

Ground Power Unit (GPU) is connected and the area surrounding the airplane has been marked with

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4.2.2 Ground Power Unit

With the main engines being shut down, the airplane’s Auxiliary Power Unit (APU) is responsible to produces the power required to ensure that the essential functions of the airplane still are operable. Before the airplane’s APU is shut down, the GPU has to be connected to the aircraft by the GSE-personnel. By connecting the airplane to the GPU, the airplane is connected directly to the grid and can shut down the APU, and thereby lower the emission released from the airplane.

4.2.3 Baggage Handling

As the airplane approaches, the electric baggage tugs used to transport the passengers’ baggage to and from the airplane, tugs empty dollies to the gate of the arriving airplane. After the chocks are positioned, the electric belt loader is positioned at the airplane and is used to unload the baggage from the airplane. After the dollies are filled with baggage from the arriving passengers, the electric tugs drive them to the sorting terminal. Before the departing passengers’ baggage is loaded into the airplanes cargo space, the letter and cargo are delivered from the postal terminal and loaded.

4.2.4 Resupply

Food and supplies to the passengers and flight crew are delivered to the airplane with a custom-built catering truck. The catering truck is often loaded outside the area called airside, and must, therefore, go through a safety check before it can proceed to the airplane. Once the catering truck arrived at the airplane, the van body of the truck is raised to the same height of the rear or front door of the airplane. To align the platform of the van body correctly and to ensure it does not damage the airplane, it can be controlled with precision. The trollies containing food and supplies is loaded and the old trollies are offloaded from the airplane. Simultaneously as the food is loaded, the water and toilet truck arrive and connect to the airplanes tail section to refill the airplane with water and remove the waste.

4.2.5 Maintenance

The airplane cleaning crew drives to the airplane by car and start the maintenance by cleaning the cabin, removing waste and replace the cabins trash bags. The airplane technician arrives by car to perform the required maintenance routine control to ensure the airplane is cleared for take-off [33].

4.2.6 Flight Crew

The flight crew consists of the pilots and cabin crew. The flight crew is driven out to the airplane and start the process to ensure that the airplane is ready for the boarding passengers in time. The number of personnel required for the flight is decided by the number passengers the airplane model can carry [35].

4.2.7 Letter – Postal Mail

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4.2.8 Cargo – Parcel Service

Cargo is packages that either is too big to be considered as a letter or is a package sent with external parcel service companies. The cargo is delivered to the airplane, from the cargo terminal, using a truck or a car. The cargo is loaded onto the airplane before the loading process of the passenger luggage can start.

4.2.9 Gate Coordinator

The gate coordinator is responsible for that the proper ground services is performed during the turnaround process. The gate coordinator also prepares the loading-plan, state the weight and balance basis and relevant documents regarding the departure.

4.2.10 Refuelling

The airplane fuel is either pumped from a central pipeline, that is placed under each gate, to the airplane or with a self-contained truck that carries the fuel to the airplane. The fuel is pumped from the central pipeline, using a custom-built hydrant truck, to the right wing of the airplane.

4.2.11 Pushback Procedure

The Pushback Procedure is the final step of the turnaround process by pushing the airplane backwards away from the gate. The procedure must start within five minutes after the GPU has been disconnected from the airplane [36]. The purpose of the pushback is to minimise the risk of damaging the airplane, the terminal building, and to increase the safety for the surrounding GSE-personnel and ground equipment. At Arlanda, a TowBarLess (TBL) tractor is used during the pushback procedure. The TBL place the airplane’s nose wheels in a cradle and manoeuvres the airplane backwards to the taxi-way.

4.3 Vehicles

For the vehicles that are being used for the procedures during a turnaround, there is a requirement for what the vehicle should be able to perform. Therefore, in the replacement process, the performance of the new vehicles must be able to meet these requirements. This is done to ensure that the new vehicles are able to perform and carry out the task. The current vehicles, and the suggested electric replacement vehicles, used for the procedures are listed in TABLE A-1 and TABLE A-2. If there is an electric alternative of the same brand and model that are currently being used, that electric alternative was selected as the replacement vehicle. For the stage when multiple vehicle models met the requirements, the vehicle that is more frequently chosen for the other GSE-procedures was chosen as the replacement vehicle for that procedure.

4.3.1 Airplane Cleaning

The cleaning personnel and their required cleaning equipment travel to the airplane from the company’s office outside the airport, in a Renault Kangoo Maxi Van. The Renault Kangoo, both the crew and the panel van, is available as an electric version, the Renault Kangoo Maxi Z.E. [37], [38].

4.3.2 Technician

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portable workshop. According to the company website [39], they provide some rebuilding of the Renault Kangoo. In this master thesis, the assumption is that this type of rebuilding can be performed on the Renault Kangoo Maxi Van Z.E. and was therefore chosen as the replacement vehicle.

4.3.3 Flight Crew Transportation

For this flight, the transportation of the flight crew, and their luggage, a Mercedes Sprinter 315 is currently used. This vehicle is able to carry up to 8 passengers, including their luggage. With Mercedes release of the electric version of the Sprinter, the eSprinter [40], that will be available in all model types, currently available for the diesel version of the Sprinter today. Therefore, the replacement vehicle was chosen to be the eSprinter Tourer. This vehicle will be available with the same passenger capacity, and size, as the current vehicle.

4.3.4 Letter – Postal Mail

The postal mail is transported from the terminal to the airplane with an Amarok, a pickup truck manufactured by Volkswagen. Occasionally, the vehicle also tugs a dolly, containing bags with letters. The replacement vehicle must, therefore, be able to be loaded with the all the bags that need to be loaded, and, more crucially, it must be able to tug a dolly. The electric vehicle (EV) that meets both of these requirements are the Renault Kangoo Maxi Van Z.E.. The Renault Z.E. have the capacity to tug 374kg. Being a van, it is also capable to carry several bags of letters in the load space.

4.3.5 Cargo – Parcel Service

The vehicles used for cargo transportation, have the same requirements as for the vehicle used during the mail transport. Therefore, the same vehicle as for letter transport, the Renault Kangoo Maxi Van Z.E. was chosen.

4.3.6 Gate Coordinator

The vehicle that currently being used to transport the gate coordinators between gates, is a carpool that consists of Fiat Qubo 225. Carpool’s sole purpose is to move personnel between gates, the Renault Kangoo Maxi Crew Van Z.E. was as the replacement vehicle.

4.3.7 Refuelling

The vehicle used to refuel the airplane is a Mercedes Sprinter 511, rebuilt to a hydrant truck. A hydrant truck is a vehicle with a pump installed on the frame of the vehicle, that is a used to pump the airplane fuel from the central pipelines. Since the Mercedes eSprinter will be available as a chassis, a model that is being sold with the purpose of being rebuilt to the customers preferences. For that reason, it will be delivered only with a cabin and an empty frame so that it can be rebuilt to a hydrant truck.

4.3.8 Pushback

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4.3.9 One-Time Costs

Today in Sweden, the government have implemented a bonus-malus-system [41]. The newly implemented system reward purchases of EVs, with a subsidy of EUR 0-6,200. The subsidy depends on the difference of the initial vehicle costs, between the EV, and that of an equal ICEV or Internal

Combustion Engine Petrol Vehicle (ICEPV) of the same brand, and model. All initial vehicle costs were

gathered from the selected vehicle-manufacturer’s Swedish webpages and are listed in TABLE 4-2. From the base model, the only additional equipment that was installed was the towbar, since it is required for most of the vehicles. From (5) the DF for Sweden were used to estimate the future RV.

TABLE 4-2

Parameters used to calculate the one-time costs

Description Symbol Value Unit

Initial cost 𝐼𝑐 see TABLE A-2 [𝐸𝑈𝑅]

Purchase subsidy 𝑠 see TABLE A-2 [𝐸𝑈𝑅]

Annual depreciation rate 𝛿 0.145 [1]

4.4 Diesel Fuel Usage

In Sweden, the government has decided to implement an annual tax increase for the diesel fuel [42]. The tax increase is set to increase the energy and carbon tax with the annual Consumer Price Index (CPI) + 2%. In this master thesis, the CPI is assumed to be 2% p.a. meaning that the annual tax increase for 2019 will be: (Energy tax (2018) + Carbon tax (2018)) •1.04. In Swedavia’s environmental report from 2017 [13], the fuel usage and emission released from vehicles from both Swedavia, and their customers, is listed. The majority of the fuel used at Arlanda, 1777m3 _{diesel fuel [13], is Diesel MK1, ACP Evolution} 50 [43]. This is a fuel sold by the oil company Preem [44] and includes approximately 50% renewable resources. and with the density of the diesel fuel used at Arlanda, [13], [43]. The parameters to calculate the fuel consumption is listed in TABLE 4-3.

TABLE 4-3

Parameters used to calculate the diesel fuel consumption

Fuel used per kWh produced 𝛾 255 [𝑔/𝑘𝑊ℎ]

Engine – Rated power 𝑃𝑟𝑎𝑡𝑒𝑑 see TABLE A-1 [𝑘𝑊]

Engine – Load 𝜂 see TABLE A-1 [%]

Diesel density 𝜌 850 [𝑔/𝑙]

Speed 𝑣 30/152 _{[𝑘𝑚/ℎ]}

Turnaround distance 𝑑𝑡𝑢𝑟𝑛 see TABLE A-1 [𝑘𝑚]

Diesel consumption 𝜇𝐼𝐶𝐸𝑉 see TABLE A-1 [𝑙/𝑘𝑚]

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4.4.1 Future Fuel Costs

With the fuel tax annually increasing, the starting value for both diesel fuel and electric energy is set to the current price in Sweden. The initial values and parameters used to calculate the annually increasing fuel costs in (13) are listed in TABLE 4-4.

4.4.2 Emissions

The emission released from vehicles using diesel fuel is estimated from fuel consumption and emission rate. The data from vehicles that are registered with the purpose of being used on Sweden’s roads, is acquired from the Swedish Transport Agency [17]. For the vehicles that are registered as non-road mobile machinery, the engines emission standard was used to calculate the emissions and the fuel consumption [20].

With the data attained from the Swedish Transport Agency, the calculated CO2 emissions released was recalculated to fit the fuel used at Arlanda. The listed values of 𝐶𝑂2 emission was divided with the

consumption to calculate the 𝐶𝑂2 equivalent for the listed emission. This equivalent was rescaled with

the emission equivalent of the fuel that is currently being used at Arlanda [36], [43]. The average 𝐶𝑂2

emission equivalent were calculated as: 𝐶𝑂_{2𝑎𝑣𝑒}= 1 𝑁෍ 𝐶𝑂2(𝑛) 𝜇𝐼𝐶𝐸𝑉(𝑛) 𝑁 𝑛=1 [𝑔/𝑙] (26)

Where 𝑛 is the vehicle used during the procedure, 𝐶𝑂2(𝑛) is the listed 𝐶𝑂2 emission for that vehicle,

and 𝜇𝐼𝐶𝐸𝑉(𝑛) is the listed consumption. From (26), the average equivalent is divided with the 𝐶𝑂2

equivalent from the fuel used at Arlanda to decide the emission factor: 𝜓𝐶𝑂₂ =

𝐶𝑂2_𝑎𝑣𝑒

𝐶𝑂_{2𝐴𝐶𝑃50} [%] (27)

Where 𝐶𝑂_{2𝐴𝐶𝑃50} is the emission equivalent from the fuel used at Arlanda. The real 𝐶𝑂2 emission for the

vehicles used at Arlanda were rescaled with the emission factor:

𝐶𝑂_{2𝑟𝑒𝑎𝑙}(𝑛) =𝐶𝑂2(𝑛)

𝜓𝐶𝑂₂

[𝑔/𝑘𝑚] (28)

Where the results from (28) is the real emission released, per kilometre, for a specific vehicle. (28) can estimate the released emissions for usage of a specific fossil fuel-type.

4.4.3 Taxes

For the road registered vehicles, the annual vehicle tax is listed on the Swedish Transport Agency website [17]. The annual tax is based on vehicle type, what type of fuel is used and other specifications that are outside the scope of this master thesis.

4.5 Electric Energy Usage

(42)

annually to the energy tax. The initial values and parameters used to calculate the annually increasing costs of electric energy in (14) are listed in TABLE 4-4. Electric vehicles are free of all taxes while driving on Swedish roads, except for the road tax.

4.5.1 Battery Costs

The lifespan of the batteries used in EVs depends on how the batteries are used, charged, discharged and the ambient temperature [45], [46]. An estimation of the battery lifespan ranges between eight to ten years [47]. Renault have a five-year warranty for their batteries installed in the Renault Kangoo Maxi Z.E.. Therefore, is the approximation of a battery lifetime set to succeed the five years, to a total of eight years. With the battery lifetime estimated to eight years, the cost of a battery replacement every eight years will be included in the LCC-analysis. The cost for a replacement battery, for the EVs, is decided using [22], [48]. The estimation is listed as EUR per kWh, from the current price (2018), and 20 years onward.

TABLE 4-4

Initial values to calculate the future annual fuel price exclusive of VAT

Price of diesel fuel 𝑝𝑑𝑖𝑒𝑠𝑒𝑙 1.3939 [𝐸𝑈𝑅/𝑙]

Combined energy and carbon tax 𝑇𝐸+ 𝑇𝐶𝑂2 0.6484 [𝐸𝑈𝑅/𝑙]

Scaling factor for the tax increase of

diesel fuel 𝜙𝐷 4.00 [%]

Price of electric energy 𝑝𝑒𝑙 48.95 [𝐸𝑈𝑅/𝑀𝑊ℎ]

Scaling factor for the tax increase of

electric energy 𝜙𝐸 2.00 [%]

Energy tax 𝑇𝐸 34.46 [𝐸𝑈𝑅/𝑀𝑊ℎ]

Average 𝐶𝑂2 emission equivalent 𝐶𝑂2𝑎𝑣𝑒 2.63 [𝑔/𝑙]

ACP50 𝐶𝑂2 emission equivalent 𝐶𝑂2𝐴𝐶𝑃50 1.63 [𝑔/𝑙]

Discount rate 𝑟 4.00 [%]

4.6 Turnaround Process

A turnaround in this context refers to the time-period when the airplane is stationary at the gate and until it is released by the pushback. During this period, the GSE-personnel carries out all steps in the procedures of getting the airplane ready for its departure. After the pushback releases the airplane, it continues with its departure for the return flight by taxi to the runway.

4.6.1 Turnaround Distance

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4.6.2 Turnaround Timeline

The timeline of when each procedure is active during the turnaround process, and when they are travelling to and from the airplane, can be seen in Figure 4.4. For a detailed timeline, see TABLE C-1.

TABLE 4-5

Parameters used to calculate the consumption of electric energy

Engine – Rated power 𝑃𝑟𝑎𝑡𝑒𝑑 see TABLE A-1 [𝑘𝑊]

Engine – Load 𝜂 see TABLE A-1 [%]

Speed 𝑣 30/153 _{[𝑘𝑚/ℎ]}

Turnaround distance 𝑑𝑡𝑢𝑟𝑛 see TABLE A-1 [𝑘𝑚]

Electric energy consumption 𝜇𝐸𝑉 see TABLE A-2 [𝑊ℎ/𝑘𝑚]

Battery capacity 𝐸𝑏𝑎𝑡𝑡 see TABLE A-2 [𝑘𝑊ℎ]

Battery range 𝑑𝑟𝑎𝑛𝑔𝑒 see TABLE A-2 [𝑘𝑚]

Battery replacement years 𝑛𝑡ℎ 8, 16 and 24 [𝑦𝑒𝑎𝑟]

Efficiency factor 𝜙 81.00 [%]

Figure 4.4 Timeline over the procedure activity. The timeline illustrates when the vehicle starts to travel towards gate 10 to start their respective procedure, during the period the procedure is ongoing or actively working on the airplane and when the vehicle starts their travel back to the starting point [i-1].

Asset Management of Electrical Transportation Systems with Life Cycle Cost Analysis for Ground Support Equipment: Case Study Stockholm Arlanda Airport

IN

DEGREE PROJECT

ELECTRICAL ENGINEERING,

SECOND CYCLE, 60 CREDITS

,

STOCKHOLM SWEDEN 2018

Asset Management of Electrical

Transportation Systems with Life

Cycle Cost Analysis for Ground

Support Equipment: Case Study

Stockholm Arlanda Airport

HAMPUS WIRÉN

KTH ROYAL INSTITUTE OF TECHNOLOGY

Asset Management of Electrical Transportation

Systems with Life Cycle Cost Analysis for Ground

Support Equipment: Case Study Stockholm

Arlanda Airport

Hampus Wirén

Master Thesis in Electrotechnical Theory and Design

Abstract

Sammanfattning

Acknowledgements

List of Abbreviations

¤

Table of Contents

1.

2.

3.

4.

5.

Table of Figures

List of Tables

Chapter 1

Introduction

1.1 Background

1.2 Related Work

1.3 Thesis Scope and Objective

1.4 Purpose

1.5 Approach

1.6 Disposition

Chapter 2

Theory

2.1 Asset Management

2.2 Life Cycle Cost

2.3 Total Cost of Ownership

AM

𝐿𝐶𝐶

Chapter 3

Method

3.1 LCC

3.2 Model

3.2.1 One-Time Costs

𝛿,

𝐼

3.2.2 Annual Operating Cost

3.2.2.1 Fuel Consumption Costs

3.2.2.2 Future Fuel Costs

3.2.2.3 Battery Replacement Cost

3.2.2.4 Tax and Maintenance Costs

3.2.2.5 Total AOC

3.2.3 TCO-Model

3.2.4 Currency Conversion

Chapter 4

Case Study Description

4.1 Stockholm Arlanda Airport

4.1.1 Flight and Airplane type

4.2 Ground Services Technical System

4.2.1 Incoming flight

4.2.2 Ground Power Unit

4.2.3 Baggage Handling

4.2.4 Resupply

4.2.5 Maintenance

4.2.6 Flight Crew

4.2.7 Letter – Postal Mail

4.2.8 Cargo – Parcel Service

4.2.9 Gate Coordinator

4.2.10 Refuelling

4.2.11 Pushback Procedure

4.3 Vehicles