Development and supply agreement enables XL
Fleet to provide battery and power electronics systems for eNow’s
innovative electrified refrigerated trailer solution
Next generation electrified refrigerated
trailers reduce diesel fuel usage and can deliver lower total cost
of ownership
XL Fleet invests in eNow, Inc. to support
commercialization of new Class 8 product line
Partnership bolsters XL Fleet’s
Electrification-as-a-Service strategy by expanding market
opportunity for its electrified powertrain and charging solutions
through financed clean infrastructure offerings
XL Fleet Corp. (NYSE: XL) (“XL Fleet” or the “Company”), a
leader in vehicle electrification solutions for commercial and
municipal fleets, today announced a battery and power electronics
development and supply agreement and an investment in eNow, Inc.
(“eNow”), a provider of solar and battery power systems that enable
fully-electric Transport Refrigeration Units (eTRUs) for Class 8
commercial trailers. Under the terms of the agreement, XL Fleet
will supply battery and power electronics systems for the first
1,000 units of eNow’s new electrified refrigerated trailer
solutions.
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XL Fleet to provide battery and power
electronics systems for eNow’s innovative electrified refrigerated
trailer solution (Photo: Business Wire)
eNow has pioneered the development of mobile solar battery
charging systems to the commercial fleet market since 2011. eNow’s
patented solar systems efficiently capture the sun’s energy with
roof mounted solar modules, and then store the energy in auxiliary
batteries used to power lift gates, in-cab HVAC, refrigeration,
telematics and other loads such as appliances and lighting. eNow
has established itself in a favorable pre-market position to
deliver emission-free eTRUs for commercial trailers in the U.S.
Partnership with eNow XL Fleet’s partnership with eNow
accelerates and expands the Company’s existing market opportunity
into Class 8 trailers. Approximately 50,000 new diesel-powered
refrigerated trailers are sold annually in the U.S., reflecting a
multi-billion dollar potential total addressable market for
all-electric solutions. Each conventional diesel power refrigerated
trailer can use as much diesel as a delivery truck uses in a day,
so there are large opportunities for diesel and emissions savings
with electrified refrigerated trailers. Additionally, the
partnership enhances XL Fleet’s strategic position to collaborate
with important Class 8 transportation customers, providing
potential cross-selling opportunities for XL Fleet’s integrated
solutions offering, including electrified powertrains and XL Grid
charging infrastructure.
XL Fleet and eNow are collaborating on the design and
development of the system that will power eTRUs, as a replacement
for conventional diesel-powered systems. XL Fleet is developing the
high-capacity integrated lithium-ion battery and power electronics
technology that will be installed underfloor on the Class 8
trailer, providing approximately 12 hours or more of run time
between charges. eNow will integrate this system into its
architecture, including solar panels mounted on the roof of the
trailer to maintain the battery charge and extend operation.
Currently available 480V 3 phase shore power will be used for
charging of the batteries and powering of the eTRU when idle or
during loading and unloading of the trailer. The system will be
equipped with a thermal management system to enable year-round
operation across North America. XL Grid will support customers that
require new charging or expanded charging infrastructure, or energy
solutions. This partnership also builds on XL Fleet’s promise of
delivering Electrification-as-a-Service, by giving customers the
opportunity to finance or lease the refrigerated trailers and
related infrastructure.
eTRUs deliver a lower total cost of ownership and are more
environmentally friendly than diesel powered units currently
serving the majority of the market today. eTRUs can be hauled by
traditional internal combustion engine or electrified tractors, as
a way for fleet managers to immediately and significantly reduce
emissions. XL Fleet and eNow expect to deliver initial eTRUs
beginning in the first half of 2022 to customers in industries
including food, retail, manufacturing and distribution.
eNow Investment Concurrent with the agreement, XL Fleet
invested $3 million in convertible notes in eNow. Additionally, XL
Fleet has the right to acquire eNow at a pre-determined
valuation.
Management Commentary “Our partnership and associated
investment is consistent with our fleet electrification strategy,
and provides us with efficient access to a large market with
significant growth potential, while opening new doors for
additional opportunities to provide our integrated fleet
electrification and XL Grid solutions to Class 8 fleets,” said Tod
Hynes, Founder and President of XL Fleet.
“We have been collaborating with eNow on critical engineering
elements of this exciting next generation electrified refrigerated
trailer offering for some time now, and continue to be impressed by
the team’s technology, ingenuity and shared passion for
sustainability,” said Dimitri Kazarinoff, CEO of XL Fleet.
“XL Fleet’s mission to help corporations and their fleets lower
operating costs while supporting sustainability goals aligns
closely with ours,” said Jeff Flath, President & CEO at eNow.
“This partnership will change the way the transportation industry
thinks about energy and refrigerated transportation, as together we
will offer the most advanced renewable power systems for reefer
trailers, coupled with charging infrastructure, to eliminate a
major source of diesel fuel consumption and emissions for
fleets.”
About XL Fleet Corp. XL Fleet is a leading provider of
vehicle electrification solutions for commercial and municipal
fleets in North America, with more than 150 million miles driven by
customers such as The Coca-Cola Company, Verizon, Yale University
and the City of Boston. XL Fleet’s hybrid and plug-in hybrid
electric drive systems can increase fuel economy up to 25-50
percent and reduce carbon dioxide emissions up to 20-33 percent,
decreasing operating costs and meeting sustainability goals while
enhancing fleet operations. XL Fleet’s plug-in hybrid electric
drive system was named one of TIME magazine's best inventions of
2019. For additional information, please visit www.xlfleet.com.
About eNow eNow is a clean-technology company and pioneer
of renewable energy systems for heavy-duty trucks and trailers.
eNow’s award-winning systems use a combination of green power
sources, including solar, to reduce CO2 emissions and cut fuel and
maintenance costs of reefer trailers by 30-50%. eNow’s patented
systems provide significant ROI while helping companies offset
regulatory requirements and meet their ESG goals. HDT magazine
named eNow’s All-Electric Solar-based Rayfrigeration™ System a “Top
20 for 2021” product. Since 2011, eNow has also deployed over 4,500
units of its solar based systems to help fleets cut costs and
maintain auxiliary batteries for liftgates, eAPUs (in-cab HVAC),
telematics and other applications. For additional information
please visit www.enowenergy.com.
Forward Looking Statements Certain statements in this
press release may constitute “forward-looking statements” within
the meaning of the federal securities laws. Forward-looking
statements generally are accompanied by words such as “believe,”
“may,” “will,” “estimate,” “continue,” “anticipate,” “intend,”
“expect,” “should,” “would,” “plan,” “predict,” “potential,”
“seem,” “seek,” “future,” “outlook,” and similar expressions that
predict or indicate future events or trends or that are not
statements of historical matters. These statements are based on
various assumptions, whether or not identified in this press
release, and on the current expectations of management and are not
predictions of actual performance. Forward-looking statements are
subject to a number of risks and uncertainties that could cause
actual results to differ materially from the forward-looking
statements, including but not limited to failure to realize the
anticipated benefits from the business combination; the effects of
pending and future legislation; the highly competitive nature of
the Company’s business and the commercial vehicle electrification
market; litigation, complaints, product liability claims and/or
adverse publicity; cost increases or shortages in the components or
chassis necessary to support the Company’s products and services;
the introduction of new technologies; the impact of the COVID-19
pandemic on the Company’s business, results of operations,
financial condition, regulatory compliance and customer experience;
the potential loss of certain significant customers; privacy and
data protection laws, privacy or data breaches, or the loss of
data; general economic, financial, legal, political and business
conditions and changes in domestic and foreign markets; the
inability to convert its sales opportunity pipeline into binding
orders; risks related to the rollout of the Company’s business and
the timing of expected business milestones; the effects of
competition on the Company’s future business; the availability of
capital; and the other risks discussed under the heading “Risk
Factors” in the Company’s Annual Report on Form 10-K filed on March
31, 2021, as amended and supplemented by the 10-K/A filed May 17,
2021, and other documents that the Company files with the SEC in
the future. If any of these risks materialize or our assumptions
prove incorrect, actual results could differ materially from the
results implied by these forward-looking statements. These
forward-looking statements speak only as of the date hereof and the
Company specifically disclaims any obligation to update these
forward-looking statements.
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XL Fleet Media Contact: PR@xlfleet.com
XL Fleet Investor Contact: xlfleetIR@icrinc.com
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