It’s been a big year for Terawatt. Since debuting on the market in May 2021, we’ve done a lot of work to refine our vision and strategy. But the heart of our vision remains the same – to enable a future of zero-carbon road transport by delivering best-in-class Charging Centers for electric fleets of all types.
The over $1 billion in committed investment that we recently announced will be instrumental in our next phase of execution as we continue to expand our team of multidisciplinary experts, grow our property portfolio, and ramp up development of our strategically located Charging Centers. This comes at an incredibly opportune time. Favorable incentives under the Bipartisan Infrastructure Investment and Jobs Act and the Inflation Reduction Act have added wind under the industry’s sails. Now more than ever, fleet owners and operators are advancing their electrification plans. And why wouldn’t they when the operating costs for electric trucks can be between 14% to 52% lower and repair costs around 40% percent less than their ICE counterparts? In fact, the Rocky Mountain Institute estimates that the provisions in the Inflation Reduction Act could help electric long-haul trucks achieve cost parity with diesel as soon as 2025.
Indeed, the demand for charging infrastructure will grow to over $1 trillion in required investment by 2040. With this fresh funding under our belt and the support of our experienced investors, we will meet this demand for commercial EV charging and ensure it expands at an even greater pace than what we’ve seen with passenger charging. With the global road freight sector responsible for 9% of global greenhouse gas emissions, the fate of our planet depends on it.
In 2022, we also saw increased availability of light to medium duty electric vehicles. Today, over 100 models of commercial electric trucks and buses are available from manufacturers. Now that the pandemic and supply chain headaches have eased up, fleets are starting to receive the vehicles they ordered several years before, and companies are being forced to figure out their charging solutions. Some have tried to do it themselves and realized the barriers are too high to overcome without outside support. That’s where we come in. After over a year of meeting with customers of all types, we understand their pain points and have built the capabilities to deliver the right solutions whether it’s for light, medium, or heavy duty vehicles across core metro areas, logistics hubs, and highway corridors.
The electrification of highway corridors is a big focus of our strategy moving forward, as the wave of heavy-duty trucks hitting production lines is coming next – and fast. For long-haul freight companies, this is not just about range anxiety. Their business depends on being able to get from point A to point B. The power requirements of these vehicles is a considerable nut to crack, and no one is approaching the efficiency of scale like Terawatt.
We’re actively working to solve the charging problem by developing America’s first multi-state network of charging stations along I-10 for electric trucks. The stations will span California, Arizona, and New Mexico and will serve both short-haul and long-haul trucking. These developments will drive adoption of long-haul EVs among companies that use the I-10 and for local traffic near the stations.
With access to shared Charging Hubs along key highways, companies can dip their toe into electrification without any interruptions to their business operations. We invest the upfront capital, bring the required power density to the site, purchase and install the equipment, optimize and maintain sites, and upgrade sites with new technology as it becomes available. All customers have to do is make a payment to use the stalls.
At our current inflection point in the mobility space, the question of electrifying fleets is no longer just about innovation – it’s becoming business as usual. At Terawatt, we’re focused on how we can accelerate this. Our answer? It has to happen smoothly and quickly.
The fact of the matter is, no single solution will be a fit for all fleets. So how can we think about the ecosystem that’s being built? There will be many players in this space, given the massive amount of infrastructure required. TeraWatt’s advantage is not only our property portfolio – targeted specifically to locations suitable for EV charging, which we have been growing for over four years now – but also our deep customer relationships and team with extensive experience in real estate, site development, energy, and operations. These attributes, coupled with the access to the very significant capital we’ve now received from likeminded investors, gives us a unique advantage in providing a comprehensive charging solution for EV fleets.