Up to $100 million will be spent helping heavy vehicles in Australia go electric.

The Australian Renewable Energy Agency (ARENA) has announced significant funding through its ‘Driving the Nation’ program, to support the electrification of heavy vehicles. 

The commitment is meant to expand on existing efforts to reduce transport emissions and accelerate battery electric vehicle (EV) adoption across the freight and logistics sectors.

ARENA is providing $28.6 million in funding to two major logistics companies under its 2022 program, committing $19.6 million to Linfox and $9 million to Toll. 

ARENA CEO Darren Miller says heavy transport could play a critical role in cutting emissions, as transport accounts for about 20 per cent of Australia’s CO2 emissions, with heavy vehicles contributing a substantial portion. 

“The heavy vehicle market has matured significantly over the past year in relation to battery electric vehicles, particularly vehicle availability and infrastructure,” he said.

“However, there are still significant hurdles including upfront costs for operators, challenges with charging technology and infrastructure, as well as the lack of real-world data.”

Miller warned that the transport sector could become Australia’s largest source of emissions by 2030, suggesting a clear need for targeted efforts in high-impact areas.

Linfox’s $19.6 million project will deploy 26 battery electric trucks over three years across distribution centres in Queensland, South Australia, and Victoria. 

Toll’s ‘Project TruckVolt’, backed by $9 million, will deploy 28 electric trucks with charging infrastructure at 10 sites. 

The projects should help gather vital data on the technical and commercial viability of electrifying heavy vehicle fleets, paving the way for broader industry adoption. 

Miller says he hopes these demonstrations will set a “new standard for sustainability in freight” and hasten the uptake of EVs on Australia’s roads.

ARENA added that applications for more fundings in its new focus areas are now open.

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