Australian logistics company Team Global Express is to add more than 300 electric trucks, vans and mobile charging stations to its already substantial fleet of electric last mile delivery trucks after landing a major $190 million financing deal led by the Clean Energy Finance Corporation..
The funding boost will add to the company’s purchase of 60 electric last mile electric trucks the company has already made in partnership with the Australian Renewable Energy Agency, along with the rooftop solar, charging and battery storage facilities.
The CEFC will contribute $30 million in concessional finance to TGE, part of a $190 million finance package that also includes Australian and international financiers such as Commonwealth Bank Australia, IFM Investors, Daimler Trucks Financial Services, and Income Asset Management.
The 300 assets will include light, medium and rigid battery electric trucks, courier vans, hybrid refrigerated trucks and mobile charging unit infrastructure across sites in Melbourne, Sydney and Queensland over the next three years. There was no indication of the breakdown in numbers of invidual assets.
TGE already operates the country’s biggest fleet of electric trucks, and the new finance comes less than three months after Prime Minister Anthony Albanese launched the company’s $44 million electric last-mile delivery hub, which includes a fleet of 60 fully electric last mile delivery trucks, battery storage and rooftop solar, and some astonishing savings from grid costs.
“We know our long-term success is dependent on our ability to operate sustainably, adapt to changing conditions, and partner across the supply chain to strengthen our focus on ESG,” company CEO Christine Holgate said in a statement. “Our mission is to be Australia’s most sustainable national logistics solutions partner.”
CEFC chief executive Ian Learmonth said transport emissions account for 21 per cent of all emissions in Australia and will likely become the biggest source of emissions by 2030 as the electricity grid and other parts of the economy decarbonise.
“We know that international jurisdictions are already moving to electrify their vehicle fleets, As a nation heavily reliant on logistics and heavy transport, we face an urgent need to decarbonise our transport supply chain network to ensure we don’t get left behind globally,” he said.
“Freight and logistics play an essential role in the everyday life of all Australians, and our economy depends on transport to keep it moving.”
“The CEFC concessional finance is helping lower one of the significant barriers to the wider take up of electric trucks – upfront vehicle costs – which means this investment will bring an unprecedented number of new electric trucks onto our roads, replacing emissions-intensive internal combustion engines.”
“We saved $17,000 in one hour:” TGE tells zero emission truck attendees how it’s done
The CEFC investment builds on the joint TGE “Depot of the Future” project that was partly funded by the Australian Renewable Energy Agency, which is designed to assess the impact on fleet management, delivery routes and infrastructure requirements when a large fleet electrifies a material proportion of its operations.
In May attendees at Australia’s first zero emission truck show, Truck Show X, were treated to master class on last-mile delivery electrification from TGE’s Heather Bone and Alex Bowler from Jet Charge.
The pair provided some fascinating insights into the electric delivery hub, which also includes a 1 MWh battery and a 400 kW solar system, and has delivered some remarkable benefits from interacting with the grid.
“We play with the spot market with our energy and so this site is often down usually at about two to five cents per kilowatt hour,” Bone said at Truck Show X.
“If there is a peak though, and we can kick in the battery so we basically turn off from the grid and kick the battery. Last week on Thursday, we saved $17,000 in one hour.
“Imagine doing that, imagine that operational impact every time we kick in that battery to try and arbitrage the market.”
![Team Global Express ESG Director Heather Bone speaking at Truck Show X in May 2024](https://b2232832.smushcdn.com/2232832/wp-content/uploads/2024/06/TGE_02.jpg?lossy=1&strip=0&webp=1)
Heavy vehicles make up only approximately four per cent of the Australian road vehicle fleet, but they account for 25 per cent of all road transport fuel consumed in Australia, with light commercial vehicles, trucks and buses accounting for around eight per cent of Australia’s total greenhouse emissions.
Trucking’s high utilisation and high emissions per vehicle makes the industry low-hanging fruit for decarbonising transport. Replacing one diesel truck with an electric one can have the same emissions reduction impact as replacing many passenger vehicles.
The CEFC says the higher upfront costs of electric trucks can be double the cost of diesel equivalents but the electrification of articulated and rigid trucks could save Australia some $233 billion in costs associated with air pollution, greenhouse gas emissions, noise and water pollution by 2050.
The CEFC has committed more than $62 million to the electrification of Australia’s vehicle fleet, helping finance more than 5,500 electric vehicles. Together with third party capital, this has helped deliver new investment exceeding $400 million.
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Daniel Bleakley is a clean technology researcher and advocate with a background in engineering and business. He has a strong interest in electric vehicles, renewable energy, manufacturing and public policy.