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US nonprofit to spend $250 million on electric trucks to lease at California ports

investing.com 29/10/2024 - 09:26 AM

Climate United Announces Major Electric Truck Purchase

By Lisa Baertlein

LOS ANGELES (Reuters) – U.S. nonprofit Climate United announced a plan to spend up to $250 million to purchase up to 500 electric semi trucks over the next three years. This initiative marks the largest single order of zero-emissions trucks in the U.S. to date.

The goal is to lease these vehicles at attractive rates to truckers transporting containers to and from California seaports, which will require all drayage trucks to have zero tailpipe emissions by 2035.

This program could significantly boost the adoption of heavy-duty electric trucks, currently representing less than 1% of the U.S. trucking fleet, as many such vehicles can be up to three times more expensive than conventional diesel trucks, which contribute significantly to greenhouse gas emissions.

Beth Bafford, CEO of Climate United, highlighted the barriers faced by independent owner-operators and small fleets in transitioning to all-electric fleets due to high upfront costs.

The Maryland-based nonprofit plans to make initial purchases in the first quarter of 2025, with a focus on class 8 trucks made in the U.S. with domestically sourced parts. Trucks from companies such as Volvo, BYD, and Kenworth are already operational in California's busiest port region.

Funding for Climate United's initiative comes from a $6.97 billion grant from the National Clean Investment Fund, part of the Greenhouse Gas Reduction Fund established by President Biden's Inflation Reduction Act.

Additionally, Climate United is partnering with Forum Mobility, which is constructing charging stations in California ports and along major freight routes. Jacqueline Torres, a vice president at Forum Mobility, stated, "This program brings both of those together,” addressing the cycle of needing trucks for charging infrastructure and vice versa.




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