The federal government-funded Clean Energy Finance Corporation (CEFC) is investing up to $6 million to enable an electric vehicle-as-a-service business to lease 60 electric trucks to Woolworths (ASX: WOW).
Zenobe will provide the trucks for use in Wooworths home delivery service in NSW and Victoria. Zenobe will also provide access to charging infrastructure.
The CEFC’s investment is part of a broader $19 million project funded by another federal government-funded agency, the Australian Renewable Energy Agency (ARENA), and Zenobe which includes the development of Australia’s first offsite battery electric truck (BET) charging hub in the Sydney suburb of Mascot. About 20 Woolworths CEFC-financed trucks will be based there.
CEFC is investing in the electrification of “last mile” goods deliveries through the as-a-service business model to help drive momentum for change. CEFC recognises that electrification of truck fleets presents significant operational and logistical challenges including high up-front costs, gaining access to charging infrastructure and grid integration and planning for battery recycling. Zenobe provides these services at fixed prices.
CEFC head of infrastructure Julia Hinwood said: “Electrifying Australia’s heavy vehicle fleet is crucial for achieving national emissions reduction targets. This CEFC investment will support infrastructure development for the BET (battery electric truck) industry that supports Zenobe leasing fixed-price BETs, an innovative model that can be adopted by the broader freight and logistics industry.
“It is essential to address the finace gap present in electrification of heavy fleet transport to accelerate the decarbonisation requirements within the sector.”
Woolworths has committed to transition its entire home delivery trucks fleet to electric vehicles by 2030.
Transport is responsible for up to 22.3% of Australia’s greenhouse gas emissions and is the fastest growing source of emissions. Despite this, sales of BETs, compared with internal combustion vehicles, remain low.
To 31 March, the CEFC had helped finance more than 14,000 electric vehicles worth more than $900 million, including third party capital.
The CEFC has invested over $190 million in other electric vehicle related projects. These have included backing Allegro Funds investee Team Global Express to accelerate electrification of its truck fleet and the introduction of electric buses in Sydney.
UK-based Zenobe was founded in 2017 and now also has operations in Europe, North America, New Zealand and Australia. The company provides batteries to store renewable energy as well as electric vehicles.
Image: A Zenobe electric truck in Woolworths livery.