PEP PepsiCo Inc

   By Stephen Nakrosis 
 

PepsiCo Inc.'s (PEP) Frito-Lay division said Thursday it planned to replace all existing diesel-powered freight equipment at its 500,000-square-foot Modesto, Calif., manufacturing site with zero emission and near-zero emission devices.

The project will see Frito-Lay integrate zero and near-zero emission vehicles into the plant's fleet, as well as utilize on-site renewable energy generation and storage systems.

Frito-Lay said the cost of the project will be about $30.8 million. The project is expected to be completed by 2021.

The project is the result of a partnership with the San Joaquin Valley Air Pollution Control District, which received a grant from California Climate Investments. It was matched by investments from Frito-Lay and American Natural Gas, along with other contributions, the company said.

Other partners in the initiative include BYD Motors LLC, University of California, Tesla Inc. and Volvo, Frito-Lay said.

The project is a first of its kind for PepsiCo and Frito-Lay, and is part of California Climate Investments, a statewide program that puts billions of Cap-and-Trade dollars to work reducing greenhouse gas emissions, strengthening the economy, and improving public health and the environment, the company said.

PepsiCo said it plans to reduce its absolute greenhouse gas emissions by 20% by 2030.

--Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

October 03, 2019 18:30 ET (22:30 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.