Root, Al. Barron's (Online); New York. 20 Sep 2023.
Electric vehicles are disrupting personal transportation with Tesla selling millions of cars a year. It's trickier electrifying heavy-duty trucks, but some companies are developing some interesting solutions to overcome barriers.
One of the barriers is charging infrastructure . Drivers cannot simply plug a semi-truck into a wall socket. It would take way too long, up to weeks to fully charge a Tesla (ticker: TSLA) semi all the way from empty. A Tesla semi's battery pack can be the equivalent of some 60,000 Apple (AAPL) iPhone batteries.
Charging a semi-truck takes a lot of planning and electrical infrastructure.
One Energy can do all that. The company is a provider of industrial-scale behind-the-meter power solutions. One Energy helps companies power facilities, often with wind- and solar-generation options.
It can help with charging trucks, too. One Energy and Ohio Logistics just entered a partnership to explore heavy-duty truck charging solutions.
One Energy and Ohio Logistics are both privately held firms based in Findlay, south of Toledo. Ohio Logistics operates 25 facilities with over 6 million square feet of warehouse space. The partnership will test two electric trucks in Ohio's network. One is a shuttle truck from Orange EV. Another is the Freightliner eCascadia. Freightliner is owned by Daimler Truck (DTG.Germany).
The trucks will run dedicated routes between facilities, and can be charged overnight. One Energy is providing a permanent charging station and high-voltage electrical infrastructure. The power for charging will initially come from One Energy's hub in Findlay, which has the capacity to deliver up to 30 megawatts of charging power, enough to charge dozens of heavy-duty trucks at once. The electricity flowing through the hub comes from the electricity grid. Down the road, One Energy would like to provide power from company-owned renewable assets. That step comes after the proof of concept.
The deal is another example of recent EV inroads into commercial trucking. Tesla delivered its first semi-trucks to PepsiCo (PEP) in December. Orange EV has placed its short-haul logistics terminal trucks in more than 200 fleets across 35 states.
One Energy plans to go public, announcing in August it will merge with a special-purpose acquisition company TortoiseEcofin Acquisition (TRTL). The deal values the company at about $384 million, net of cash.
Tortoise stock is at $10.54, which values One Energy at about $414 million in total.
When the merger is complete. The stock symbol will change to ONEP, and the company will be called One Power instead of One Energy.
Tortoise stock is up about 1% since the Aug. 15 merger announcement. The S&P 500 is up about 2% over the same span. There is no fixed date for the merger to close. SPAC deals typically close in three to six months.
Write to Al Root at firstname.lastname@example.org
Credit: Al Root