FedEx Supports New Project Mapping Charging Needs and Grid Readiness in the GTHA
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Insights
As the transportation sector grapples with the need to reduce greenhouse gas emissions, the initiative by the Pembina Institute, supported by FedEx, represents a strategic approach to addressing one of the critical challenges in fleet electrification: the deployment of adequate charging infrastructure. The focus on the Greater Toronto and Hamilton Area (GTHA) is particularly significant given its status as a major economic and transportation hub in Canada.
From a policy perspective, the Grid Readiness Project could serve as a model for other regions. The comprehensive action plan Pembina aims to develop will likely highlight the importance of data-driven decision-making in infrastructure investment. This is crucial, as misaligned infrastructure can lead to bottlenecks that impede the adoption of electric vehicles (EVs), potentially derailing efforts to meet emissions targets. Furthermore, the involvement of a major player like FedEx signals a shift in corporate responsibility towards sustainable practices, which could encourage other businesses to follow suit, amplifying the project's impact.
Transitioning to zero-emission vehicles (ZEVs) is not just a transportation issue but also poses significant implications for the energy market, particularly in terms of demand and grid stability. The anticipated steep increase in energy demand from ZEVs will require not only more power generation but also grid enhancements to handle peak load times associated with vehicle charging.
Utilities and energy regulators will need to consider the implications of the Grid Readiness Project's findings on energy pricing, load management and the potential for renewable energy integration. The use of RMI's GridUp data platform suggests a move towards more sophisticated grid management tools that can forecast and accommodate the localized spikes in electricity demand. This project could set a precedent for how energy markets adapt to the electrification of transport, influencing investment in energy infrastructure and possibly spurring innovation in smart grid technologies.
The environmental benefits of fleet electrification are clear, with significant reductions in greenhouse gas emissions projected from the switch to electric vehicles. However, the economic implications are multi-faceted. On the one hand, there is a potential for job creation in the manufacturing of EVs and the development of charging infrastructure. On the other hand, there may be disruptions in industries related to traditional internal combustion engine vehicles.
From an environmental economics standpoint, the Grid Readiness Project aligns with the concept of 'green economy,' where economic growth and environmental responsibility coexist. The long-term savings from reduced emissions and fossil fuel dependence can be substantial, but the upfront costs and economic shifts must be managed carefully. The action plan developed by the Pembina Institute will need to balance these considerations, ensuring that the transition supports economic stability while achieving environmental goals.
The Pembina Institute launches initiative to help accelerate fleet electrification
TORONTO, ON / ACCESSWIRE / March 27, 2024 / With generous support from FedEx, the Pembina Institute has launched the Grid Readiness Project to help accelerate the transition from gas- and diesel-powered fleets to zero-emission road freight.
The Grid Readiness Project is a unique collaboration between the Pembina Institute and RMI. At the end of the project's research and analysis phase, Pembina will release a comprehensive charging infrastructure Action Plan for the Greater Toronto and Hamilton Area (GTHA) that will assist decision-makers in determining optimal locations for commercial freight charging and refueling stations and their anticipated energy loads.
Operators of large fleets have already begun to switch over to low-carbon and electric commercial vehicles, and uptake is expected to continue its rise. However, the adoption of zero-emission medium- and heavy-duty vehicles is at risk of stalling largely because the deployment of charging infrastructure has not kept pace.
Utilities and energy regulators are only now beginning to make planning decisions that will address the steep increase in energy demand from zero-carbon road transportation. In the absence of research that can inform complex and dispersed decisions and investments, the Pembina Institute will undertake analysis using RMI's new GridUp data platform, a powerful tool that will inform utilities, energy regulators, and others on how to proactively locate, strengthen and upgrade charging infrastructure.
Pembina will also be working with municipalities, industry stakeholders, and policymakers to assess grid readiness and recommend next steps.
This announcement reflects a commitment by FedEx to advance sustainable transportation throughout Canada. FedEx is working toward transforming its entire parcel pickup and delivery fleet to zero-tailpipe-emissions vehicles by 2040, as part of its goal to reach carbon-neutral operations by the same year.
Quotes
"Fleet electrification is a key pillar of the FedEx roadmap to carbon-neutral operations by 2040 and our commitment to deliver a more sustainable future for all. Our commitment to the Pembina Institute will bring RMI's advanced grid planning tools to the Greater Toronto area, empowering key players in the electrification ecosystem with information needed to support a wide-scale transition to EVs."
- Dean Jamieson, Vice President of Operations, FedEx Express Canada
"We've been witnessing the gradual shift to fleet electrification, which is likely going to go into overdrive in less than 10 years. This means enormous changes in the types of trucks and buses on the road and the infrastructure needed to power these vehicles. Given the timelines, planning for charging locations and energy demand needs to happen as soon as possible and decisions need to be data driven. The support from FedEx for this project shows how the private sector can be a leader in some of the most important climate actions we can take to realize a net zero-carbon future."
- Adam Thorn, Transportation Director, Pembina Institute
"RMI is thrilled to work with the Pembina Institute as they leverage the GridUp platform to advance planning for their region's electric vehicle charging needs. Equipped with data-driven insights from GridUp, utilities and grid operators in the GTHA will be able to validate proactive infrastructure investments where the imminence of electric vehicle charging demand is clear, enabling rapid electric vehicle adoption that avoids unnecessary expenditures."
- Dave Mullaney, Principal of Carbon Free Transportation, RMI
Quick facts
- In June of 2023, FedEx Express Canada received its first 50 Zevo 600 all-electric
delivery vehicles from GM subsidiary BrightDrop. FedEx now has over 1,000 low-emission vehicles globally. - Fleet turnover is expected to continue its rise. BloombergNEF predicts commercial road freight will have another breakout year in 2024, forecasting a doubling of deliveries of new electric vehicles from approximately 500,000 in 2023 to 1 million in 2024.
- Electrifying all 4 million U.S. and Canadian vans and step vans would save nearly 43.5 million tonnes of greenhouse gas emissions each year.
- Electrifying all medium-duty box trucks in the U.S. and Canada would save more than 7.6 million tonnes of GHG emissions each year.
About The Pembina Institute
Our mission is to advance a prosperous clean energy future for Canada through credible policy solutions that support communities, the economy and a safe climate. The Pembina Institute envisions a world in which our needs are met in ways that protect natural ecosystems; ensure clean air, land and water; stop contributing to climate change; and promote a just global community.
About FedEx Corp.
FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenue of
About RMI
RMI is an independent nonprofit founded in 1982 that transforms global energy systems through market-driven solutions to align with a 1.5°C future and secure a clean, prosperous, zero-carbon future for all. We work in the world's most critical geographies and engage businesses, policymakers, communities, and NGOs to identify and scale energy system interventions that will cut greenhouse gas emissions at least 50 percent by 2030. RMI has offices in Basalt and Boulder, Colorado; New York City; Oakland, California; Washington, D.C.; and Beijing.
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Contact
Victoria Foote
Communications Advisor, Pembina Institute
647-290-9384
Background
Report: Canada's Pathway to Net-Zero for Medium- and Heavy-Duty Trucks and Buses
Blog: Ambitious, staggered sales mandates a key to meeting zero-emission MHDV targets
View additional multimedia and more ESG storytelling from FedEx Corporation on 3blmedia.com.
Contact Info:
Spokesperson: FedEx Corporation
Website: https://www.3blmedia.com/profiles/fedex-corporation
Email: info@3blmedia.com
SOURCE: FedEx Corporation
View the original press release on accesswire.com
FAQ
What is the name of the initiative launched by the Pembina Institute with support from FedEx?
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