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Amazon (AMZN) Boosts Zero-Carbon Efforts With Infinium Deal

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Amazon (AMZN - Free Report) gears up to power its transportation fleet with low-carbon electrofuels on the back of its recent deal with Infinium.

Infinium will supply ultra-low carbon electrofuel, which is fossil-based and made with carbon waste.

Amazon will start powering its delivery-trucking fleet with electrofuels in 2023, beginning from its middle-mile vehicles in Southern California.

The latest move bodes well for Amazon’s growing efforts to make carbon-free deliveries to customers., Inc. Price and Consensus, Inc. Price and Consensus, Inc. price-consensus-chart |, Inc. Quote

Amazon’s Growing Efforts

The above-mentioned move is in sync with the company’s goal of reaching net-zero carbon emissions by 2040 and converting its entire delivery fleet to renewable energy by 2030.

Beside the Infinium deal, Amazon’s purchase of 100,000 electric delivery trucks from Rivian is noteworthy. AMZN recently started rolling out the vehicles. It aims to roll out thousands of these trucks in more than 100 cities in the United States by the end of this year. Amazon targets to roll out 100,000 electric delivery trucks nationwide by 2030.

The e-commerce giant recently inked a deal with Plug Power. Per the terms, the latter will supply green hydrogen, with which the former would power its transportation and building operations by 2025.

Apart from this, Amazon, which is known as the biggest corporate investor in renewable energy, has 274 renewable energy projects globally.

The company’s climate-friendly program, which focuses on environment-friendly products, remains another major positive. Under the program, customers can view the Climate Pledge Friendly label while purchasing more than 25,000 products.

Zero-Carbon Mission Gaining Steam

Amazon has been shifting its focus from fossil fuels to clean energy for quite some time. The shift to clean energy sources is anticipated to reduce costs in the near term, which is a major positive. AMZN can generate healthy returns from strengthening solar and wind investments, as there are several associated tax incentives.

Not only Amazon but companies like Alphabet (GOOGL - Free Report) , Microsoft (MSFT - Free Report) and KLA Corporation (KLAC - Free Report) are also taking initiatives to lower overall carbon footprints and cut energy bills substantially.

Alphabet’s aggressive three-fold strategy, which includes energy efficiency, renewable energy procurement and carbon offsets, remains noteworthy. The company’s division Google has been carbon neutral since 2007. GOOGL is aiming to be carbon-free by 2030.

Microsoft is gathering steam to become carbon negative by 2030. By 2050, MSFT aims to remove all emissions, which it has released since its founding year.

Meanwhile, KLA is committed to powering its global operations with 100% renewable energy by 2030. KLA is targeting a 46% cumulative reduction in both Scope 1 and Scope 2 emissions by 2030 from its 2019 baseline.

Nevertheless, we believe that Amazon’s latest move will provide it a boost in this race to be carbon neutral.

Currently, Amazon carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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