A Major Order Secured by Canoo for its Lifestyle Vehicles and Lifestyle Delivery Vehicles, and Announcement of New Hydrogen Pipeline in Europe

EU’s First Hydrogen Pipeline to Connect Portugal, Spain, and France

Market Impact Factor: High

Jannat Wasif | Junior Analyst – Hydrogen

The French, Spanish, and Portuguese leaders have announced the H2Med energy interconnected project which aims to supply Europe with hydrogen. Formerly known as ‘BarMar’, the H2Med pipeline will transport 2 million tons of green hydrogen per year and will be the first hydrogen corridor in the EU which will connect the Iberian Peninsula with the rest of Europe. It will have two sections. The first will go from the Portuguese town of Celorico da Beira to Zamora, Spain, with a length of 248 kilometers. It is estimated that it will take about four years to build, including the estimated period of two years to get the permits, and will cost around 350 million euros. The second section will link, across the Mediterranean, Barcelona, Spain, and the French city of Marseille. It will be 455 kilometers long and will take four and a half years to build, including permitting time and will cost 2.5 billion euros.

The total cost of the project, therefore, would be 2,500 million euros, which is expected to be financed up to 50% through the EU’s ‘Connecting Europe Facility’ (CEF), which provides funding to projects of trans-European networks in the energy sector. The H2Med project has two main objectives. The first one is to reinforce energy security within the region in the context of vulnerability due to the Russia-Ukraine crisis whereas the second objective is to comply with the region’s commitment to climate neutrality while also moving towards the RePowerEU’s goal of producing 10 million tonnes of renewable hydrogen domestically by 2030. Construction on the project is expected to begin in 2025 and it is estimated that 10% of the European Union’s green hydrogen consumption by 2030 will be transported through this pipeline.

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Canoo has Signed an Agreement for Zeeba to Purchase its 5,450 LDVs & LVs

Market Impact Factor: High ?

Amna Mumtaz ?| Junior Analyst – E-mobility

Earlier this week, Canoo (a leading high-tech advanced mobility company based in California) secured a major order for its Lifestyle Vehicles (LVs) and Lifestyle Delivery Vehicles (LDVs) from Zeeba (a growing national fleet leasing provider company based in Los Angeles) which has agreed to buy 5,450 Canoo electric vehicles, with an initial binding commitment of 3,000 units by 2024.

Zeeba has great electrification targets to electrify at least 50% of its fleets by the first quarter of 2024. Canoo’s LDV & LV technology will enable customers to run their operations more effectively and efficiently while lowering their carbon footprint. Customers will utilize the LDV and LV mobile goods, ride-hailing, food delivery, trade professions, and other applications.

Earlier this year in July, Walmart secured a contract with Canoo to order up to 10,000 LDVs, with prioritized deliveries beginning in the first quarter of 2023. However, Canoo, the financially struggling start-up imposed several terms for this order that may have been hard to accept like Walmart has the option of acquiring up to a quarter of Canoo, and Canoo is not allowed to sell vehicles to Amazon for the duration of the deal.

In the United States, decarbonization of the light-duty vehicle industry is a major policy priority. Light duty vehicles accounted for 58% of U.S. transportation carbon emissions in 2019. The Biden administration has set a goal of selling 50% of new vehicles that are zero-emissions by 2030. In 2019, Los Angeles establishes strong EV targets of 80% of all vehicle sales by 2028. According to the PTR database, it is expected that 92% of annual vans sales in the U.S. will be battery-electric by 2028, and this agreement between Canoo and Zeeba will assist in meeting that goal.

You can reach the news?here .

California Approves USD 2.9 Billion for ZEV Infrastructure

Market Impact Factor: High

Humza Farhan | Analyst I – E-mobility

California, after previously releasing a total of $2.6 billion to enhance funding of clean transportation, is yet again in the news with another funding, taking the state to the very top of the leaderboard in entities accelerating towards clean transportation and zero-emission vehicles.

The state entity, California Energy Commission (CEC) has approved a $2.9 billion investment plan, primarily to expand infrastructure for zero-emission vehicles (ZEV) in the state. The majority of the budget is to flow into charging points for electric utility vehicles including heavy and medium-duty vehicles. Out of the total amount, the largest portion – $1.7 billion – is to be invested in new charging facilities for medium and heavy-duty electric vehicles by 2026. The second biggest investment within the program, amounting to $900 million, is aimed at new chargers for electric passenger cars and light commercial vehicles. Combined with investments from utilities and other programs, the US state aims to reach its goal of a total of 250,000 chargers by 2025.

In summary, the CEC funding includes $1.7 billion for medium and heavy-duty zero-emission vehicle infrastructure, inclusive of charging points and sites, $900 million for light-duty EV charging infrastructure, inclusive of passenger and commercial vehicle segments, $118 million for the production and manufacture of zero-emission vehicles of all weight categories, $90 million for hydrogen refueling infrastructure, $97 million for other zero-emission technologies in transportation such as aviation, rail, marine vessels, and more importantly, the integration of V2x sub-systems. The package additionally includes $15 million for zero and near-zero carbon fuel production and supply, which includes R&D for alternative fuels such as bio-mass and renewable energy sources, $15 million for low-carbon fuels, which may provide some headway towards the recent construction vehicle move towards integration of HVO fuels, and finally, $10 million for the introduction and establishment of jobs and workforce development.

The Port of Los Angeles is already well underway with decarbonizing activities, while the state’s airports have been the focus of hydrogen hubs as well as the decarbonization of ground transport. In terms of the V2G side of things, the state has had some trouble with blackouts and is understandably concerned with grid security, especially in light of the expected uptake of electric vehicle charging. Apart from this government funding, V2G pilot attempts are already underway between vehicle manufacturers and utility companies.

You can reach the news?here .