Renta opening eyes with electric alternatives – Interview with Renta Group fleet director Fredrik Svanestrand

Can you start by laying out some of the reasons why a fully electric construction machine, let’s say a wheel loader, can be a good choice for a certain project? What are the benefits?  

“There are several benefits with the electric machines that customers benefit from. Among the key ones typically driving the demand for the machines are the significantly lower noise pollution, no exhaust fumes, no idling, limited fluid leaks while the machines produce no CO2 emissions. The value of these benefits is easiest seen in inner-city environments where a lot of people move, live and work close to the construction site.” 

Can you tell us about some recent use cases involving fully electric alternatives? 

”We recently had a successful eight-month project with a fully electric telehandler (JCB 525-60e) in Sweden. During a reconstruction in Volvo facilities there was a need to move material through a building to reach the worksite and then an electric machine was ideal to maintain a good working environment for the people in the building. This is a good example of a case where the demand is driven by the setting (indoor or close to indoor) that the machine will operate in.”  

”In Norway, our fleet includes several fully electric excavators from 10t to 25t (e.g. CAT 320 Z-line El and CAT 310 Z-line El), which are sought after when there are specific project requirements, typically driven by external demands on green projects or regulations. The volume of these projects is still relatively low, but we manage to keep utilization at a good level by transferring the machines to the locations where there is a demand, also outside of Norway.” 

“In addition, we also have a good partnership in Norway with Hafslund, one of the electricity providers in Norway, where we are teaming up and providing both clean electricity and suitable electric equipment to make construction sites emission-free.”  

“It is important that we use the benefit of being an international company with the possibility to transfer equipment over border” 

Regulation drives requests for fully electric 

What kind of factors are creating demand for alternatives like battery-electric machines today? How do you expect the demand to develop in the future?  

”In all our markets the requests for larger electrical equipment are mainly driven by regulation. In Sweden and Norway, specific customers, such as municipalities, require completely green construction sites. We know this does increase the demand for electrical equipment and will continue to do so in the future.” 

”For example, Oslo municipality aims to reduce the city’s greenhouse gas emissions by 95% by 2030. A large part of the emissions come from the building and construction sector.” 

”We can see new legislation coming in Norway for 2025 that will require a larger share of fully electric machines in many sites. A similar development can be expected in Sweden. That will have a significant effect on when it will be the right time for us to start investing more heavily in larger electrical equipment since, at the moment, they are more expensive and it is difficult to get customers to pay more unless there is some direction for it.” 

”Until the demand for electrical machines is larger across our markets it is important that we use the benefit of being an international company with the possibility to transfer equipment across borders. Going forward our ambition is to further increase equipment transfers which will in the end lead to higher utilization rates and a more attractive investment business case.” 

Zero-emission machines for zero-emission zones 

How do you see the development of machine use in dense urban areas like city centres? Will there be areas where only zero-emission vehicles and machines are allowed?  

”We already see urban zones with zero emission requirements for machinery, just like we will soon see parts of Stockholm only allowing electric vehicles. I’m sure these zones will only be expanded, and it is just a matter of how fast it will happen. I also think that has a lot to do with what we and others are able to offer in terms of equipment. If the change is too sudden, there might not even be enough of fully electric equipment available in the market.” 

”The demand for zero-emission equipment will increase in the future, that is for sure. Right now, we are prepared in the way that equipment is in place to win these projects.” 

”We also have more standard development; for example, boom lifts are becoming electric instead of diesel. For instance, in Renta Finland, over 90% of aerial platforms bought in 2022-2023 were fully electric.” 

“We can also use our digital solutions, such as telematics, to show clients that an electrical machine might be a good suggestion and an economical alternative based on their specific usage patterns” 

Right machine for the right job 

Are there some specific target customer types or groups for fully electric alternatives?  

“We think it is important to have the right machine for the right job.”  

“By renting the equipment the customer can be very flexible and pick the best solution for the job at hand. This way our zero-emission equipment can benefit any kind of customer when the job calls for it. Rather than target customers, we can think about target projects where the machines fit a need.” 

”At least now, it is primarily customers who are looking for machines like fully electric excavators to meet certain project requirements. Another kind of customer is one that has their own sustainability agenda, wants to be at the forefront, and is willing to pay for it.” 

”We want the clients to at least know that we have a full range of electrical machines, from the very smallest to some of the largest ones. Going forward, we can use our size as an international company to move the equipment from country to country, making the business case more attractive.”  

”We can also use our digital solutions, such as telematics, to show clients that an electrical machine might be a good suggestion and an economical alternative based on their specific usage patterns. We see this as a possibility to stimulate demand further.” 

How do you see Renta’s role in bringing new technologies like battery-electric alternatives to the market? 

”The reality is, we are still in the early days of alternative power replacing diesel and other combustion engine powered machinery in the large machine categories.” 

”We are already proposing electric alternatives to customers today and trying to open the eyes of those who may not have previously considered it. For example, we had this fully electric telehandler in Sweden on a successful eight-month project, and we can use that experience to suggest a similar approach to suitable projects elsewhere.” 

”From a customer perspective, it is always good to start by renting, not having to take the full investment, learning, and seeing which usage context they fit.” 

”Also, from the manufacturer’s perspective, we can quickly reach a broad customer base, get feedback, and pass it on to the manufacturers for further product development. Are there, for example, pain points that are not anticipated? As a rental company, we feel like an essential part of the further rollout of alternative power machines.” 

”Internally we are also aiming to set up a new product area for green solutions that clarifies our offering and value proposition, and also makes it easier for customers to find these products. So far, most of the business development is being done locally, but we are looking to harmonize the categories and processes between countries so that when a customer in Finland asks for, say, a power bank, we can find it from Norway if it is available there.” 

“As a rental company, we feel like an essential part of the further rollout of alternative power machines” 

Lastly, how do you see the overall role of utilization rate in lowering the environmental issues of machine use?  

”It is key that we have a right-sized fleet that is well maintained, not standing around, and transported to where there is demand at the moment. Keeping utilization high means a lower CO2 footprint.”  

”We can also work with our new digital solutions, and telematics to propose the right machine to the right customer need so that we are not providing a machine that is too heavy or too fuel-consuming. This is something we are doing in all countries already today.” 

Thank you Fredrik! 

Fully electric examples from Renta’s fleet: 

• power banks (e.g., Atlas Copco ZBC 250-575 and Instagrid One Max)   

• aerial platforms (e.g. Manitou 200 ATJe) 

• forklifts (e.g. Hyundai 25B-9) 

• telehandlers (e.g. JCB 525-60e) 

• wheel loaders (e.g. Volvo L25 Electric) 

• excavators (e.g. CAT 320 Z-line El 25t)