Canada's Purolator to invest C$1 billion to electrify fleet amid green transition

(Reuters) - Canada-based delivery and logistics firm Purolator Inc, largely owned by Canada Post, said on Thursday it plans to invest about C$1 billion ($727.17 million) to electrify its fleet as the company looks to reduce its greenhouse gas emissions by 2030.

Canadian Finance Minister Chrystia Freeland promised investments that can compete with the U.S. Inflation Reduction Act (IRA), which contains $369 billion in incentives for consumers and businesses to make the low-carbon transition there, to encourage firms to build a clean economy in Canada.

While Canada has an abundance of the critical minerals needed for electric vehicles, experts in the industry believe the country must do more to be a key player in the green transition, as the IRA is already spurring investment in the United States.

Purolator will deploy 25 Ford E-Transit vans in London, Ontario, Richmond, British Columbia and Quebec City this month.

The company said it will also add another 55 Motiv and 15 BrightDrop models, along with several low-speed vehicles and electric cargo bikes later this year.

Purolator, which aims to electrify more than 60 terminals across Canada, plans to reduce emissions from electricity by 100% through the use of renewable sources and by diverting more than 70% of its waste from landfill.

($1 = 1.3752 Canadian dollars)

(Reporting by Priyamvada C in Bengaluru; Editing by Krishna Chandra Eluri)