Anheuser-Busch is making yet another sustainability-minded investment.
The world’s largest beer company today announced plans to purchase upwards of 800 hydrogen-electric powered semi-trucks from Nikola Motor Company.
The announcement comes about five months after A-B placed an order for 40 fully electric powered semi trucks, made by Nikola rival Tesla, that are also equipped with autonomous driving capabilities.
“We’re continuously searching for ways to improve sustainability across our entire value chain and drive our industry forward,” Michel Doukeris, CEO of A-B North America, said via a press release. “The transport industry is one that is ripe for innovative solutions and Nikola is leading the way with hydrogen-electric, zero-emission capabilities. We are very excited by the possibilities our partnership with them can offer.”
According to the release, Nikola’s zero-emissions vehicles are capable of traveling as far as 1,200 miles and can be refilled within 20 minutes.
Under the agreement, A-B will begin receiving the vehicles in 2020, and Nikola has until 2025 to complete the order. On average, Nikola’s trucks will cost an estimated $400,000, according to Reuters.
“With nearly $9 billion in pre-order reservations, we are building to order, not speculation, and are very excited for what’s to come,” Nikola CEO Trevor Milton added in the release.
The deal with A-B could be worth as much as $720 million, according to Trucks.com.
The announcement builds on A-B’s goal of reducing company-wide CO2 emissions by 25 percent by 2025.
The purchase of 800 vehicles is equivalent to taking 13,000 passenger vehicles off the road, the release stated.
A press release with additional details is included below.
Anheuser-Busch Continues Leadership in Clean Energy, Places Order for 800 Hydrogen-Electric Powered Semi-Trucks with Nikola Motor Company
ST LOUIS, MO and SALT LAKE CITY, UT — Anheuser-Busch and Nikola Motor Company today announced that America’s leading brewer has placed an order for up to 800 hydrogen-electric powered semi-trucks from the pioneer in hydrogen-electric renewable technology. The zero-emission trucks — which will be able to travel between 500 and 1,200 miles and be refilled within 20 minutes, reducing idle time — are expected to be integrated into Anheuser-Busch’s dedicated fleet beginning in 2020.
Through this agreement, Anheuser-Busch aims to convert its entire long-haul dedicated fleet to renewable powered trucks by 2025. Nikola’s cutting-edge technology will enable the brewer to achieve this milestone across its long-haul loads, while also helping to improve road safety through the trucks’ advanced surround viewing system.
“At Anheuser-Busch we’re continuously searching for ways to improve sustainability across our entire value chain and drive our industry forward,” said Michel Doukeris, CEO of Anheuser-Busch. “The transport industry is one that is ripe for innovative solutions and Nikola is leading the way with hydrogen-electric, zero-emission capabilities. We are very excited by the possibilities our partnership with them can offer.”
“Hydrogen-electric technology is the future of logistics and we’re proud to be leading the way,” added Trevor Milton, CEO of Nikola Motor Company. “Anheuser-Busch has a long history of investing in progressive, sustainable technology and we are excited to partner with them to bring the largest hydrogen network in the world to the USA. By 2028, we anticipate having over 700 hydrogen stations across the USA and Canada. With nearly 9 billion dollars in pre-order reservations, we are building to order, not speculation, and are very excited for what’s to come.”
The partnership with Nikola will contribute to Anheuser-Busch’s recently announced 2025 Sustainability Goals, which include reducing CO2 emissions by 25% across its value chain[i]. Once fully implemented, the carbon reductions gained from these 800 trucks will reduce the brewer’s carbon emissions from logistics by more than 18% — equivalent to taking more than 13 thousand passenger vehicles off the road annually.
Emission reduction has, and continues to be, a long-term focus for Anheuser-Busch. In 2006, the brewer joined the U.S. Environmental Protection Agency’s SmartWay Transport program; and since 2008, has reduced its total energy use in U.S. breweries by more than 30%. Anheuser-Busch has proudly brewed America’s most loved beers for the past 165 years and through its commitment to a sustainable future, hopes to continue doing so for the next 165 years and beyond.”