Amazon (AMZN) to Electrify Fleet With Rivian Vans in Germany
Amazon AMZN is set to power its transportation fleet with Rivian’s RIVN electric vans in Germany.
The latest move is part of the e-commerce giant’s purchase of 100,000 electric delivery trucks from Rivian in 2019.
As per the plan, 300 electric vans will be deployed in Munich, Berlin and Dusseldorf regions.
Notably, the move marks the company’s first such action in Europe. Moreover, it is in sync with Amazon’s strategy of electrifying its European fleet, for which it has invested EUR 1 billion.
Out of this, the company has allocated EUR 400 million to Germany.
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Strong Transport Electrification Efforts
The above-mentioned move bodes well for the company’s goal of converting its entire delivery fleet to renewable energy by 2030.
Besides its deepening focus on Europe, the company’s deployment of 3,000 Rivian vans across various cities in the United States last year remains noteworthy.
Further, Amazon’s deal with Infinium to power its transportation fleet with low-carbon electrofuels remains a major positive. Notably, Infinium supplies ultra-low-carbon electrofuel, which is fossil-based and made with carbon waste.
Moreover, the company’s deal with Plug Power is another positive. Per the terms, the latter will supply green hydrogen, with which Amazon will power its transportation and building operations by 2025.
Bottom Line
The above-mentioned efforts are in sync with Amazon’s aim to reach net-zero carbon emissions by 2040.
Amazon has been shifting its focus from fossil fuels to clean energy for quite some time. The shift to clean energy sources is anticipated to reduce costs in the near term, which is a major positive. AMZN can generate healthy returns from strengthening solar and wind investments, as there are several associated tax incentives.
This Zacks Rank #3 (Hold) company is now recognized as the biggest corporate investor in renewable energy. It has 401 renewable energy projects in total across 22 countries.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Not only Amazon but companies like Alphabet GOOGL and Microsoft MSFT are also taking initiatives to lower overall carbon footprints and cut energy bills substantially.
Alphabet’s aggressive three-fold strategy, which includes energy efficiency, renewable energy procurement and carbon offsets, remains noteworthy. The company’s division, Google, has been carbon neutral since 2007. GOOGL is aiming to be carbon-free by 2030.
Microsoft is gathering steam to become carbon negative by 2030. Further, MSFT aims to remove all green gas emissions by 2050.
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