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Electric Vehicle Startup Rivian Gets Big Van Order From Amazon.com

DETROIT, Sept 19 (Reuters) – Electric vehicle startup Rivian Automotive LLC got a big boost from one of its investors on Thursday when Amazon.com announced it was ordering 100,000 electric delivery vans.

Before Rivian has even begun commercial production at its factory in Normal, Illinois, the Amazon order rocketed it to the forefront of electric vehicle makers.

Amazon Chief Executive Jeff Bezos said in Washington that as part of the online retailer’s plan to be carbon neutral by 2040 it would order the electric vans from Rivian, with deliveries starting in 2021. The goal is to deploy all the vehicles by 2024.

Rivian, a potential rival to Silicon Valley’s Tesla Inc, unveiled its electric R1T pickup and R1S SUV last November, but had piqued Amazon’s interest earlier. Bezos personally reached out to Rivian CEO R.J. Scaringe last summer to express interest in an investment, sources previously said.

Plymouth, Michigan-based Rivian, founded in 2009, has raised close to $1.9 billion from investors, including a $700 million February round led by Amazon.

The deal solidifies Rivian’s place among EV builders, said Sam Fiorani, a vice president with Auto Forecast Solutions. “It helps boost the image of the (Rivian) brand,” he said.

Rivian aspires to be the first to produce a mass market electric pickup. It intends to begin selling its R1T by the end of 2020, a target that has not changed with the Amazon deal in place, said Rivian spokeswoman Amy Mast said.

Traditional U.S. automakers Ford Motor Co, a Rivian investor, and General Motors Co, as well as Tesla, are pushing to develop their own electric pickups.

The Amazon vans, under the exclusive deal, will be built at Rivian’s plant, a former Mitsubishi factory in Normal, Illinois, Mast said. The first vehicles will be delivered in 2021 and 10,000 should be on the road by late 2022, she said. The vehicles will be serviced by Rivian.

Scaringe has described the Rivian vehicle’s platform as a skateboard that packages the drive units, battery pack, suspension system, brakes and cooling system all below wheel height to allow for more storage space and greater stability due to a lower center of gravity.

Amazon is looking to speed packages to shoppers’ doorsteps regardless of spikes in consumer demand or shortages of delivery personnel. Last year, Daimler AG’s Mercedes-Benz said Amazon had become the biggest customer of its Sprinter vans, securing 20,000 vehicles for delivery contractors.

Ford invested $500 million in Rivian in April with plans to use the Rivian EV platform to build a new vehicle in North America. Details of that vehicle were not disclosed. Ford is not involved in the Rivian deal, Mast said.

Cox Automotive Inc, the owner of the Autotrader online automobile market and the Kelley Blue Book car valuation service, invested $350 million in Rivian this month. The companies will explore partnerships in digital retailing, service operations and logistics.

Other backers include Saudi auto distributor Abdul Latif Jameel Co, Sumitomo Corp of Americas and Standard Chartered Bank.

Amazon’s reputation and the contract size would raise Rivian’s status with potential customers and investors, Fiorani said. It also offers the advantage of not having to chase buyers or ship vehicles all over the country.

(Reporting by Ben Klayman in Detroit; Editing by David Gregorio)

Airlines Collaborate on First Regional ‘Perfect Flight’ in Sweden

  • Braathens Regional Airlines has collaborated with Air BP, ATR and Neste to achieve the ‘Perfect Flight’ from Halmstad City airport to Stockholm Bromma airport in Sweden – a country aiming to be carbon neutral by 2045.
  • Sustainable aviation fuel, produced by Neste and supplied by Air BP, was used to power the ATR 72-600 – the regional aircraft with the best environmental credentials.
  • Every element of the flight management process has been optimised to keep carbon emissions to a minimum.

Today, a number of companies from across the aviation sector have risen to the challenge of turning a typical weekday service from Halmstad City airport (HAD/ESMT) to Stockholm Bromma airport (BMA/ESSB) into the ‘Perfect Flight’.

This is the first time that every element in the flight management process on a regional flight has been optimized to keep carbon emissions to a minimum and achieve the ‘Perfect Flight’ – in Sweden, a country that is aiming to be carbon neutral by 2045. A full flight of seventy two passengers, including international media, were on board the Braathens Regional Airlines ATR 72-600 turboprop, the regional aircraft with the best environmental credentials, which took one hour to reach its destination.

According to ATR, the ATR 72-600 has an environmental advantage, in that it produces 40 percent fewer carbon emissions per trip compared with regional jets, saving 4,000 tonnes of carbon emissions per aircraft per year. ATRs can also take off and land where other aircraft cannot, ensuring accessibility to all airfields, including those that are the most challenging. This helps connect more communities and provides more opportunities for people, wherever they live.

With the electrification of commercial aircraft thought to be decades away, advances in aircraft efficiency and the use of sustainable aviation fuel are likely to play a significant role in supporting the aviation industry to meet its ambitious target of reducing carbon emissions to half 2005 levels by 2050.

The Perfect Flight was powered by sustainable aviation fuel supplied by Air BP and produced by Neste. The fuel supplied will produce up to 80 percent fewer emissions over its life-cycle compared with conventional jet fuel and is produced from non-palm renewable and sustainable raw materials. In addition, Air BP’s operations at Halmstad City airport are one of their over 250 locations that have been certified as carbon neutral since 2016.

Following the flight, a responsible aviation seminar was held at Stockholm Bromma airport where the crew shared the results of how the ‘Perfect Flight’ had been achieved. A host of experts shared their views including Peter Larsson – CEO of Sweden’s Regional Airports, Jonas Bergman – Mayor of Halmstad, Tom Anderson – ATR Senior Vice President, Programs and Customer Services, Anna Soltorp – Head of Sustainability, BRA and Tom Parsons, Air BP Commercial Development Manager, Low Carbon, and Andreas Teir, Neste’s Vice President in Renewable Transportation, Nordics.

From his seat on the Perfect Flight, Parsons said: “At Air BP we are committed to working across the industry to meet our collective carbon reduction goals. Today has highlighted what is possible when we all work together and we are proud to have been the supplier of sustainable aviation fuel for this perfect flight. We will continue to look for ways to reduce emissions in our own operations and for our customers.”

Meanwhile, Soltorp commented: We want to continue to fly ‘perfectly’ in the future. To achieve this, it is important that we can access sustainable aviation fuel in sufficient quantities and at the right price. For that we need political initiatives. We intend to continue the development of sustainable flying to make every flight as close to perfect as we possibly can. As a society we need to take action to combat climate change and drastically reduce emissions, aviation must play its part in this. Today, we have demonstrated what can be achieved through more efficient flying without compromising connectivity. It is another positive step forwards.”

Anderson added: “Today, using existing technology and available solutions, we have pushed the boundaries even further. This great achievement wouldn’t have been possible without using an ATR aircraft, as our ATR 72-600 version uses 40 percent less fuel and emits 40 percent less CO2 than a regional jet. We are delighted to have taken up this challenge and demonstrate what is possible, which will hopefully set an example for other communities around the world.”

Teir commented: “Aviation stakeholders in Sweden have adopted a proactive approach to show their commitment to reducing emissions from their operations by promoting the use of renewable jet fuel. Decarbonizing aviation calls for close cooperation between aviation stakeholders combined with a strong willingness to work collaboratively. We are proud of our partnership with Air BP in bringing sustainable jet fuel to Sweden, which sends a strong signal to the international aviation community also.”

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