ARENA Allocates $100 Million to Support Australia’s Heavy Vehicle Electrification

Credit: Volvo Trucks

The Australian Renewable Energy Agency (ARENA) is committing 100 million Australian dollars to its “Driving the Nation Program” to support the electrification of the country’s heavy transport sector.

With a focus on “Trucks, Charging, and Innovation,” ARENA has already earmarked $28.6 million for two projects aimed at reducing carbon emissions in freight transportation.

Of the allocated funds, $19.6 million has been awarded to logistics company Linfox to deploy 26 battery electric trucks and charging infrastructure across three distribution centers in Queensland, South Australia, and Victoria. Meanwhile, Toll has been granted $9 million to support its “Project TruckVolt,” which will involve a total investment of $67 million.

Toll plans to deploy 28 battery-electric trucks, including ten Volvo FM Electric prime movers and 18 Volvo FE electric rigids, at ten customer and Toll-owned sites across Australia. The project will also integrate electric trucks into third-party logistics operations for key clients, including Coca-Cola Europacific Partners, Woolworths, Bluescope, and Origin Energy.

The funds from ARENA are part of the ongoing effort to electrify Australia’s freight sector. ARENA CEO Darren Miller highlighted the importance of the heavy transport sector in reducing carbon emissions. “The heavy vehicle market has matured significantly over the past year to battery electric vehicles, particularly vehicle availability and infrastructure,” he said. “Supporting both Linfox and Toll to electrify their heavy vehicle fleet is a significant milestone in our goal to decarbonise transport.”

Since its launch in 2022, the “Driving the Nation Fund” has aimed to foster cheaper, cleaner transport solutions by investing in initiatives to reduce carbon emissions in the transport industry. ARENA reports that heavy goods transport accounts for approximately one-fifth of Australia’s CO2 emissions. With new focus areas now open, the initiative is set to further accelerate the adoption of battery-electric vehicles in the nation’s freight sector.

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