PepsiCo Invests $30 Million to Replace Diesel-Powered Equipment with Lower Emission Technologies

(From left to right: Matt Fenton, senior site director, Frito-Lay Modesto; Mike O'Connell, vice president, supply chain, PepsiCo; Dr. Alexander Sherriffs, board member, California Air Resources Board and San Joaquin Valley Air Pollution Control District; and Samir Sheikh, executive director, SVJAPCD. Credit: Frito-Lay)

by | Oct 7, 2019

(From left to right: Matt Fenton, senior site director, Frito-Lay Modesto; Mike O’Connell, vice president, supply chain, PepsiCo; Dr. Alexander Sherriffs, board member, California Air Resources Board and San Joaquin Valley Air Pollution Control District; and Samir Sheikh, executive director, SVJAPCD. Credit: Frito-Lay)

Frito-Lay — a division of PepsiCo, Inc. — aims to replace all of its existing diesel-powered freight equipment with zero-emission (ZE) and near-zero emission (NZE) technologies at its Modesto, Calif. manufacturing site. The project will transform the 500,000-square-foot site — one of Frito-Lay’s largest in the US — into an area for environmentally sustainable manufacturing, warehousing and distribution.

The project is a first-of-its-kind for PepsiCo and Frito-Lay and is part of California Climate Investments (CCI), a statewide program that puts billions of Cap-and-Trade dollars to work reducing greenhouse gas emissions, strengthening the economy, and improving public health and the environment — particularly in disadvantaged communities. CCI funding is awarded by several state agencies including the California Air Resources Board (CARB).

Expected to be completed in 2021, the $30.8 million Modesto project will integrate an array of commercially available and pre-commercial ZE and NZE technologies in numerous applications, among them fleet vehicles and supporting infrastructure, on-site renewable energy generation, and energy storage systems. The Modesto project will also contribute to industry knowledge of the emerging technologies by funding data collection and reporting of the project results.

The project is the result of a partnership with the San Joaquin Valley Air Pollution Control District (SJVAPCD), which received a grant from CCI — matched by investments from Frito-Lay and American Natural Gas (ANG), as well as in-kind contributions from Café Coop — to support the Modesto sustainability initiative.

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