ANC announces ARENA funding to accelerate fleet electrification

ANC are proud to announce a significant new funding agreement with the Australian Renewable Energy Agency (ARENA) to accelerate the electrification of our delivery fleet - an initiative that ANC are calling Project Spark.

Over the next two years, ANC will spearhead the deployment and operation of 112 electric vehicles and charging stations across Australia, making significant progress towards our goal of electrifying 30% of our last mile delivery fleet by 2028.

ARENA CEO Darren Miller said Project Spark marks ARENA’s first foray into LMD and builds on the agency’s investments in the electrification of road freight and logistics, buses, and ports.

Mr Miller said, “The breadth of innovation in Project Spark, across both supply and demand-side measures, is commercially astute, practically workable, and very exciting.”

“It promises to kick-start a step change in electrifying LMD in Australia by lowering the total costs to own and run electric trucks, which in turn boosts the numbers of zero-emission vehicles on our roads.

“The project demonstrates use cases for BEV trucks in LMD operations, tackling constraints that have so far made it hard for the industry to transition away from internal combustion engine vehicles.

“Ultimately, this project is about educating owner-drivers and countering the misperceptions out there. We are confident that the future for a low-emissions LMD industry is in BEVs,” he said.

ANC manages a network of contracted owner-drivers to provide LMD services to some of Australia’s most iconic retail brands, including IKEA, JB HI-FI, The Good Guys, Bunnings, Who Gives A Crap, Temple and Webster, and William Sonoma.

Currently, owner-drivers considering BEV trucks face higher capital costs, limited access to charging infrastructure, costly and complex private charging options, and constrained revenue potential.

ANC designed Project Spark to leverage commercial and technological levers to lower the total cost ofownership (TCO) of BEV trucks for owner-drivers, supported by a range of partners including CarBon, Origin, SpotLumos & others.

ANC’s proposal to offer discounted trucks with leasing options, improve battery-charging and vehicle-utilisation models, and unlock new revenue streams aims to resolve these challenges.

On the supply side, ANC's negotiations with vehicle manufacturers, its review of owner-driver contracts, and improved leasing terms combined translate into longer contracts for owner-drivers who can then lease discounted BEV trucks at lower interest rates and smaller repayments.

To further incentivise the switch to BEVs, ANC will also incentivise drivers to make the switch from ICE to a BEV truck through a range of incentives designed to cover the TCO gap.

For 'green' revenue, ANC will offer consumers & clients the option of paying a 'green upcharge', like buying carbon offsets with airline tickets, for a guaranteed sustainable delivery. ANC clients can also divert advertising spend to pay for allocated delivery trucks to be wrapped in their livery for 'brand carry'.

To unlock another revenue stream, ANC will assess deploying BEVs for overnight and night-time deliveries in residential areas, a service previously limited due to the noise of diesel engines.

ANC CEO, Joe Sofra said: “This grant from ARENA is a vote of confidence in ANC's vision for a cleaner, greener future. With this support, we will expedite the deployment of battery electric vehicles, reducing emissions and leading the charge towards a zero emissions delivery ecosystem. We are poised to make a substantial impact on the market, and more importantly, on the environment. We thank ARENA for their support in helping ANC drive this pivotal shift in the industry."

ANC Chief Growth & Sustainability Officer, Mo Abbas said, our commitment to lead the energy transition transcends fleet conversion and includes a pursuit to find innovative ways to solve urban gentrification challenges, overcoming resistance to change and routing for the shortest possible route to customer to reduce carbon emissions.