The Australian Renewable Energy Agency has awarded Team Global Express, formerly Toll Global Express a grant of $20.1 million to make metropolitan deliveries using electric trucks.
The funds mark the latest move by the federal agency to boost electric vehicle use, a centrepiece of federal Labor government policy agenda.
The grant comes as Team Global Express moves to run 36 new medium and 24 light rigid battery electric trucks, which will recharge when they return to base at Bungarribee in Western Sydney.
Minister for Climate Change and Energy Chris Bowen said back-to-base operations were a great way to decarbonise Australia’s heavier road vehicles.
“This is the largest adoption of battery electric trucks by a major logistics provider in Australia and a great example of ARENA’s work, together with industry, to reduce emissions,” Mr Bowen said.
“I live next door to the largest industrial estate in the southern hemisphere, and I’ve seen the level of exhaust that come from delivery trucks on the highways that cross Western Sydney. Moving to EV trucks will be a much-welcomed step for the community”
The haulage company has also pledged to spend $44.3 million to build charging and other site infrastructure to power nearly a third of its Sydney-based express parcels fleet based at the depot.
Team Global Express aims to reduce the emissions profile of its 6500-strong heavy transport fleet, following the large-scale trial which will place 60 Battery Electric Vehicles (BEVs) into its Express Parcels fleet.
Heavy vehicles account for 22 per cent of road transport emissions, government data shows, and they are increasing. Financial support for adopting electric trucks will work to reduce emissions in the sector.
“Today is an important step toward progressing Australia’s pathway to reduce scope 1 emissions and secure a net zero future,” said Christine Holgate, group CEO of Team Global Express. “This is the first project of its scale in Australian logistics, as such we are in a unique position to work closely with ARENA to share the knowledge we gain and provide this vital information for the benefit of the entire transport and logistics sector.”
The ARENA funding comes just weeks after Labor said it will spend $20.5 million to discount loans used to purchase electric vehicles as part of a deal struck between the Clean Energy Finance Corporation and Taurus Motor Finance.
Labor has made boosting electric vehicle sales a centrepiece of its plans, and scored a legislative victory last month to exempt low-and zero emission cars from fringe benefits tax, potentially saving buyers more than $30,000.
The fringe benefit tax exemption will apply to vehicles purchased since July 1 and which fall short of the Commonwealth’s luxury car tax threshold, which is set in 2022-23 for fuel-efficient vehicles at $84,916.
Still, the announcements are unlikely to be a step change for Australia, which continues to languish well behind other developed nations in EV usage.
Electric vehicles account for just over 3 per cent of new car sales in Australia, and with the upfront cost of electric vehicles at between $50,000 to $60,000, the cost will remain a big barrier despite the ever-higher costs of running a petrol-fuelled car. EV subsidies of a few thousand dollars introduced by various state governments are strictly limited in number.
Extracted from Financial Review