SunPower Corporation
At a Glance
Industry
Energy or Utility
Project Type
Zero Emission Vehicles, Freight and Logistics
Year
2022
Location
San Jose, CA
Summary
Abdullah identified the greenhouse gas (GHG) emissions and cost savings for the delivery vehicles primarily through the deployment of battery powered electric vehicles.
Goals
SunPower Corp., in order to meet sustainability goals, is committed to achieving net zero carbon emissions for U.S. downstream freight – from warehouse shipment to home delivery – by 2030 by getting ready to deploy battery powered electric vehicles. To achieve this deployment smoothly, an evaluation was required to estimate the costs incurred and benefits achieved, in terms of both, GHG emission reduction and cost. Abdullah was enlisted to provide this analysis along with developing tools to analyze battery powered electric vehicle deployment.
Solutions
Abdullah tackles the challenge in two different steps:
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Perform existing operations analyses: This included the review of existing operations of SunPower business, their logistics, and various modes of transportation contracts made with third parties. Developing their understanding was crucial to furnish recommendations for further improvements.
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Development of the tool: Abdullah reviewed a preliminary planning assessment and the cost analysis developed by a 3rd party vendor for SunPower Corporation to review the validity of assumptions and output figures. Based on the initial assessment, he then developed an in-house tool to analyze the cost and GHG emissions savings by switching to battery powered electric vehicles. The results were promising enough to move to the next phase which included the potential capital expenses and equipment retirement benefits if any. The tool has various capabilities of providing an in-depth analysis of how the deployment would look for a particular warehouse location in terms of cost and GHG reduction.
Potential Impact
SunPower plans to convert 90% of its fleet to electric by 2030 to help decarbonize the supply chain. This will curb greenhouse gas emissions and help reduce fuel costs. However, capital costs and technology could be a hindrance to fast development.
REVOLV, a fleet solutions provider, is helping currently to transition from conventional vehicles to battery powered electric vehicles, and for the longer term, SunPower can make use of the tool to prepare for future deployments for other existing and upcoming SPRI locations. This tool can offer an overview of the costs and savings for the next 5 year period depending on the number of vehicles and chargers to be deployed.