UK company Zenobē is moving on from Sydney’s electric buses and into grocery delivery, locking in $8.5 million in federal funding to do so.
The charging infrastructure company will build an electric truck charging site in Sydney for grocery delivery trucks, with a grant from the Australian Renewable Energy Agency (ARENA).
It’s not the first time Zenobē has worked with ARENA. In 2021 the federal green bank gave it $5 million towards the $37.2 million ‘Next Generation Electric Bus Depot’ in Leichardt, Sydney.
It is this kind of green finance that is critical to getting new projects like the bus hub and the future grocery delivery site at Mascot underway, said Zenobē founder Nicholas Beatty in a statement.
With the new project, Zenobē will own and operate the $19 million charging site and 60 electric trucks, which will be leased to Woolworths under an electric-vehicle-as-a-service model.
EV charging as a service is a model that is increasingly used in Australia, allowing companies to install charging sites without having to invest in the infrastructure themselves, but including the vehicles in the deal is a new element.
Woolworths is particularly keen on this solution as it sidesteps “significant” operational and financial uncertainties such as securing sufficient power, installing and maintaining charging infrastructure, replacing batteries, maintaining a reliable service, and keeping costs down, the company says.
“We are working to make our fleet of home delivery trucks 100 per cent electric by 2030, and we know that will only be possible with the support of sustainability leaders like Zenobē,” said Woolworths head of last mile innovation and partnerships Wendy Briggs said in a statement.
The Mascot site will have 22 charging ports and a second life battery made from repurposed EV batteries.
While Woolworths is the cornerstone customer, the site is open to all comers keen to charge their electric trucks, Zenobē says.
The company expects work on the charging hub to begin in September and be ready early next year.
Last mile a focus for reducing transport emissions
The project will be an example of one way companies can electrify their heavy fleets, says ARENA CEO Darren Miller, without a significant investment in equipment and infrastructure.
“As customers become more used to having their groceries delivered, it makes sense to find renewable energy solutions to do so,” he said in a statement.
“Transport plays a vital role in Australia’s economy and contributes to 20 per cent of emissions. ARENA is excited to fund projects like this finding solutions to the problem.”
Last mile trucking is one of the low hanging fruits that funders such as ARENA are targeting.
In June the federal green bank invested $12.8 million into last mile delivery company ANC’s $45.5 million Project Spark, which is designed to address barriers in electrifying the truck owner-driver segment with discounted leasing options and improved charging infrastructure.
ARENA helped logistics company Team Global Express to buy 60 electric last mile delivery trucks in 2022.
The company followed that up this year with funding from the Clean Energy Finance Corporation to add more than 300 electric trucks, vans and mobile charging stations.
And in January a company called Foton Mobility Distribution introduced the Asiastar brand to the Australian market, stepping in to supply light-duty vehicles for last mile and inner city jobs.
Rachel Williamson is a science and business journalist, who focuses on climate change-related health and environmental issues.