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Caterpillar Signs Strategic Agreement with CRH for Electric Off-Highway Trucks and Charging Solutions

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Caterpillar Inc. (CAT) signs electrification strategic agreement with CRH (CRH) to deploy zero-exhaust emissions solutions. CRH, the leading aggregates producer in North America, partners with Caterpillar to accelerate the deployment of 70 to 100-ton-class battery electric off-highway trucks and charging solutions. The collaboration aims to support CRH's climate-related objective of reducing greenhouse gas emissions by 30% by 2030 and achieving net-zero emissions by 2050.
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The strategic agreement between Caterpillar Inc. and CRH represents a significant advancement in the heavy machinery and construction industries' move towards sustainability. This partnership is indicative of a broader trend where traditional industries are seeking to reduce their carbon footprint through the adoption of electric and zero-emission equipment. The focus on large, off-highway trucks, which are integral to the operations in these sectors, suggests that the shift towards electrification is not limited to light vehicles or consumer markets but is now penetrating core industrial operations.

From a market perspective, this collaboration could potentially open up new revenue streams for Caterpillar as it positions itself as a leader in electric machinery solutions. As other companies in the aggregates and construction sectors observe CRH's adoption and the performance of Caterpillar's electric trucks, demand for these sustainable solutions may increase, potentially leading to a significant market shift. The partnership also serves as a case study for the feasibility and efficiency of electric heavy machinery in real-world applications, which could influence industry standards and regulations in the future.

The agreement between Caterpillar and CRH aligns with global efforts to decarbonize industry operations in response to climate change. CRH's commitment to a 30% reduction in absolute carbon emissions by 2030 and its ambition to achieve net-zero by 2050, is a robust example of corporate environmental responsibility. The deployment of battery electric off-highway trucks is a substantial step towards this goal, as it directly addresses one of the major sources of greenhouse gas emissions in the aggregates industry: diesel-powered heavy equipment.

Furthermore, CRH's participation in Caterpillar's Early Learner program is a strategic move that allows for real-time feedback and improvements, ensuring that the equipment developed meets industry-specific needs. This collaborative approach not only benefits CRH's sustainability objectives but also contributes to the evolution of zero-emission technologies that could be adopted by other industries. The success of this initiative could serve as a blueprint for similar decarbonization efforts within the sector and beyond.

The announcement of the strategic agreement between Caterpillar and CRH is likely to be viewed positively by investors and stakeholders. Caterpillar's proactive approach to developing zero-exhaust emissions solutions could enhance its competitive edge and market share in the long term, particularly as global regulations on emissions become increasingly stringent. This move may also improve Caterpillar's brand reputation and align it with the growing ESG (Environmental, Social and Governance) investment criteria that are becoming more important to investors.

For CRH, the operational efficiencies and potential cost savings from using electric vehicles could improve profit margins over time. Additionally, being an early adopter of such technologies may provide CRH with a competitive advantage in the aggregates industry, which is historically energy-intensive and subject to environmental scrutiny. However, it is crucial to monitor the initial capital expenditures and the return on investment timeline, as the shift to electric vehicles often requires significant upfront investment.

IRVING, Texas, Jan. 8, 2024 /PRNewswire/ -- Caterpillar Inc. (NYSE: CAT) announced it has signed an electrification strategic agreement with CRH (NYSE: CRH) to advance the deployment of Caterpillar's zero-exhaust emissions solutions. CRH is the number one aggregates producer in North America and the first company in that industry to sign such an agreement with Caterpillar.

The agreement is focused on accelerating the deployment of Caterpillar's 70 to 100-ton-class battery electric off-highway trucks and charging solutions at a CRH site in North America. Through the agreement, CRH will participate in Caterpillar's Early Learner program for battery electric off-highway trucks, testing and validating the units in real-world applications. CRH will also provide voice of customer feedback to address safety, performance, operational and compliance requirements for the aggregates industry.  

"We are pleased to work with CRH, as our first aggregates industry customer, to expand our electrification solutions beyond mining. When it comes to sustainability, the quarry and aggregates industry requires diverse solutions. Our collaboration with CRH is an exciting opportunity to learn together and gain valuable insights into how our products can best support CRH's long-term objectives to decarbonize its operations," said Resource Industries Group President Denise Johnson.

The collaboration supports CRH's climate-related objective of reducing greenhouse gas emissions from its operations by utilizing more sustainable equipment. CRH has set a target to deliver a 30% reduction in absolute carbon emissions by 2030 (from a 2021 base year) and an ambition to be a net-zero business by 2050.

Scott Parson, President, CRH Americas Materials Solutions said, "At CRH, we recognize that collaboration and innovation are critical to delivering our industry-leading decarbonization targets and achieving our ambition of net-zero by 2050. Through this partnership with Caterpillar, we will advance the use of sustainable equipment in our operations and build on our shared commitment to a low-carbon future."

About Caterpillar
With 2022 sales and revenues of $59.4 billion, Caterpillar Inc. is the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. For nearly 100 years, we've been helping customers build a better, more sustainable world and are committed and contributing to a reduced-carbon future. Our innovative products and services, backed by our global dealer network, provide exceptional value that helps customers succeed. Caterpillar does business on every continent, principally operating through three primary segments – Construction Industries, Resource Industries and Energy & Transportation – and providing financing and related services through our Financial Products segment. Visit us at caterpillar.com or join the conversation on our social media channels at caterpillar.com/en/news/social-media.html.

About CRH
CRH (NYSE: CRH, LSE: CRH) is the leading provider of building materials solutions that build, connect and improve our world. Employing c.75,800 people at c.3,160 operating locations in 29 countries, CRH has market leadership positions in both North America and Europe. As the essential partner for road and critical utility infrastructure, commercial building projects and outdoor living solutions, CRH's unique offering of materials, products and value-added services helps to deliver a more resilient and sustainable built environment. The company is ranked among sector leaders by Environmental, Social and Governance (ESG) rating agencies. A Fortune 500 company, CRH's shares are listed on the NYSE and LSE. For more information visit: www.crh.com.

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/caterpillar-signs-strategic-agreement-with-crh-for-electric-off-highway-trucks-and-charging-solutions-302028602.html

SOURCE Caterpillar Inc.

FAQ

What strategic agreement did Caterpillar Inc. (CAT) sign with CRH (CRH)?

Caterpillar signed an electrification strategic agreement with CRH to advance the deployment of zero-exhaust emissions solutions, focusing on accelerating the deployment of battery electric off-highway trucks and charging solutions at a CRH site in North America.

What are the objectives of the collaboration between Caterpillar Inc. (CAT) and CRH (CRH)?

The collaboration aims to support CRH's climate-related objective of reducing greenhouse gas emissions by 30% by 2030 and achieving net-zero emissions by 2050, while also testing and validating battery electric off-highway trucks in real-world applications.

What are CRH's climate-related objectives?

CRH aims to reduce greenhouse gas emissions by 30% by 2030 and achieve net-zero emissions by 2050.

Who is the President of CRH Americas Materials Solutions?

Scott Parson is the President of CRH Americas Materials Solutions.

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