The cohesion, or even the cooperation, among state governments seems to have gained momentum through the COVID-19 National Cabinet initiative. This collaborative strategy has now extended to the transportation sector with the introduction of a potential hydrogen highway spanning from Victoria through New South Wales and reaching up to Queensland. As the hydrogen corridor comes into existence and efforts intensify to promote the adoption of hydrogen-powered vehicles, individuals owning and operating trucks might be pondering the implications for acquiring truck loans for new vehicles.
There is a global push towards decarbonisation of the freight industry which is being driven by CALSTART Drive to Zero. A global agreement on zero emission buses and trucks which many organisations around the globe have signed on to.
We address these recent advancements and explore the potential effects that the establishment of a hydrogen corridor could have on individuals seeking truck loans for the acquisition of new, compliant vehicles
Hydrogen Corridor Collaboration
The states along the eastern seaboard – Victoria, New South Wales, and Queensland – have entered into a Memorandum of Understanding (MOU) aimed at establishing a hydrogen corridor along key transportation routes. This initiative involves the implementation of a refueling network along the Hume Highway, Pacific Highway, and Newell Highway.
This collaborative effort by the states is a proactive step towards reducing carbon emissions in the logistics sector, and it begins with the planned installation of four refuelling stations along the Hume Highway by the year 2026.
In making the announcement, Matt Kean, the NSW Treasurer and Energy Minister said the establishment of a hydrogen refuelling network on this busy freight route would enable decarbonisation of the heavy transport sector. From the NSW perspective, this is part of the Government’s overall strategy which aims for 10,000 heavy vehicles and 20% of government vehicles to be powered with green hydrogen by 2030.
The Victorian Minister for Energy, Environment and Climate Change, Ms Lily D’Ambrosio said that the renewable hydrogen highway would create jobs and motivate investment and was a major step to meeting the states 2050 net-zero target.
Mick de Brenni, Minister for Energy, Renewables and Hydrogen in the Queensland Government said that hydrogen presented a big opportunity for Queensland including benefits around fuel security as well as reducing emissions.
The project will initiate by constructing four refuelling stations along the Sydney-Melbourne route. Additionally, this commitment encompasses financial support through grants for the introduction of Australia's pioneer long-haul hydrogen fuel-cell electric trucks.
Finance for Hydrogen Fuel Trucks
As highlighted by a journalist covering this significant state-led declaration, the focus now shifts to increasing the availability of hydrogen fuel cell trucks within the market. Undoubtedly, with the announcement of hydrogen refueling station establishment and other investments in hydrogen propulsion, truck manufacturers are likely to respond accordingly.
The challenge of refueling has been acknowledged as a significant hurdle hindering the adoption of hydrogen trucks in Australia. With this concern being addressed, particularly on specific routes, the prospect of advancements in the vehicle marketplace becomes more feasible.
For prospective buyers considering the transition to hydrogen-cell trucks in the future, rest assured that Jade Truck Loans extends financing options for all categories of trucks, irrespective of their energy source.
Truck Acquisition Loans
For the purchase of new trucks including hydrogen fuel cell models, Jade Truck Loans offers the choice of the truck loan options:-
- Chattel Mortgage
- Rent to Buy truck loans
- Commercial Hire Purchase
All four loan types are available for a range of business set-ups including large fleets, sole traders, owner-operators, partnerships, corporations and family enterprises.
Differences can be found in regard to tax deductions, balance sheet treatment and suitability to different accounting methods across the range of loan types. Different interest rates also apply to the different loan types. Interest rates can be compared and repayment estimates obtained by using our Truck Loan Calculator.
Variations aside, we secure all truck loans with a fixed interest rate, a fixed loan term and fixed repayments. This streamlines investment planning and budgeting over the full term of the loan which may be up to 7 years.
For new operators getting into the transport sector, we also have Low Docs and No Docs Truck Loans available across the range. These specialty loans are for businesses that do not have all the financial records that are traditionally expected to be included in a business finance application form.
For businesses aiming to convert their current vehicles into hydrogen fuel cell operation, traditional asset acquisition financing might not be the most suitable choice. To cater to these non-asset transactions, we provide solutions like Unsecured Business Loans and alternative forms of business finance, including Lender Overdrafts.
Our expert consultants at Jade Truck Loans will guide you through these available options and work to secure a quote for the most cost-effective interest rate loan that aligns with your specific requirements.
Contact Jade Truck Loans on 1300 000 003 to discuss financing a new hydrogen truck.
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