Amazon (NASDAQ: AMZN) on Tuesday announced that it had signed an agreement with Infinium, a renewable fuels technology company, to supply ultra-low carbon electrofuels for its transportation fleet starting 2023.
According to the press release, Infinium will supply the e-commerce giant with enough electrofuels to replace diesel fuel for approximately 5 million miles of travel per year. Electrofuels are “a fossil-based fuel alternative created with carbon waste and renewable power.”
Amazon plans to begin use of the electrofuels in trucks in its middle mile fleet in Southern California. The middle mile fleet transports customer orders from its vendors and fulfillment centers to the company’s network of sortation and delivery stations.
“Infinium’s electrofuels can help Amazon reduce carbon emissions across our transportation fleet, which is important to both us and our customers, and will help us move closer to our goal of net-zero carbon by 2040,” said Kara Hurst, vice president of Worldwide Sustainability at Amazon.
Infinium plans to develop low-carbon fuels than can be used to power not just cargo trucks but also airplanes and marine freight without the need for engine modifications.
The renewable fuels startup previously received an investment from Amazon’s Climate Pledge Fund, a $2 billion program that “specifically invests in companies building technologies, products, and services that can help Amazon and others accelerate the path toward net-zero carbon future.”
“We’ve been developing this technology for the better part of a decade, and we expect our electrofuels to reduce greenhouse gas (GHG) emissions by approximately 95 percent over traditional fossil fuels,” Infinium CEO Robert Schuetzle.
“We’re thrilled to have the first fleet of Amazon trucks powered by electrofuels starting next year, which will mark the beginning of a major shift for the entire transportation sector.”
Amazon last traded at $123.73 on the Nasdaq.
Information for this briefing was found via Amazon. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
