Dive Brief:
- Frito-Lay is planning to convert its 500,000 square foot Modesto, California facility into a near-zero and zero-emissions freight hub by 2021, according to a press release.
- The transition will cost $30.8 million, the bulk of which will go toward replacing diesel-powered equipment and integrating near zero and zero-emissions fleet vehicles, infrastructure and renewable energy generation and power storage capabilities on-site, the company said in the release.
- Michael O'Connell, vice president of supply chain at PepsiCo, said in a statement that part of the budget will also go toward further research and data collection on these technologies.
Dive Insight:
The decision is part of PepsiCo's (Frito-Lay's parent company) goal to cut emissions 20% by 2030. As a result, Frito-Lay's other sustainability efforts include water and energy use reduction and upgraded robotics.
According to the release, the Modesto project is the "first of its kind" for PepsiCo and Frito-Lay. Currently, the facility supports the company's sustainability efforts by sending roughly 1% of its waste to landfill. The infrastructure and fleet overhaul represents a new attempt to achieve sustainability operations goals at scale.
The company plans to partner with Tesla and Volvo on electric fleet vehicles and tractors; install a natural gas station, a 1 megawatt rooftop solar array on its carport, doubling the facility's current solar energy generation capacity; truck and employee electric charging stations; and other upgrades, according to a statement emailed to Supply Chain Dive on behalf of Frito-Lay.
Throughout the project, PepsiCo and Frito-Lay are partnering with California Climate Investments (CCI), a state-wide program that invests in sustainability projects, which is contributing some funding. "The project is the result of a partnership with the San Joaquin Valley Air Pollution Control District (SJVAPCD), which received a $15.4 million grant from the California Air Resources Board (CARB) – matched by a $13.5 million investment by Frito-Lay and a $1.8 million investment by American Natural Gas (ANG)" to support the initiative, according to the statement.
Other major firms took steps toward sustainable operations this year, including Nike and Amazon.
Nike announced last month it will open a 1.5 million square foot distribution center on its European Logistics Campus in Belgium that will run on 100% renewable energy, much of which will come from locally generated from wind, solar, geothermal, hydroelectric and biomass. It will also recycle 95% of all waste produced there.
Amazon recently released a much-anticipated sustainability plan including a commitment to net-zero carbon emissions by 2040 and a purchase order of 100,000 electric vans from Rivian for its last-mile delivery fleet. According to Amazon, the vans will cut 4 million metric tons of carbon emissions.
