Zenobē and Woolworths have announced a landmark deal to lease 148 electric trucks, marking Australia’s largest electric truck fleet rollout and a major milestone in the commercial maturity of zero-emission freight transport.
The project is supported by the Clean Energy Finance Corporation (CEFC), which has committed up to $22 million to back the large-scale deployment of battery electric trucks (BETs).
The funding will help electric fleet specialist Zenobē Australia acquire a fleet of up to 148 BETs to deliver low-emissions groceries, in a transaction that backs what will be the largest fleet rollout of electric trucks in Australia.
The vehicles, Foton T5 BETs, will be leased to Woolworths for last-mile delivery across New South Wales and Victoria, with additional vehicles deployed in Queensland, Western Australia and South Australia.
First deliveries commenced in May, with the full fleet rollout to be completed progressively over the course of 2026 and 2027.
The trucks strengthen Woolworths’ growing delivery electrification initiatives across Australia.
Gareth Ridge, Country Director, Australia and New Zealand at Zenobē, said the deal underscores the commercial case for going electric.
“This project is evidence that electrification is a commercial opportunity,” Ridge said.
“Woolworths is already rolling out hundreds of electric trucks at scale; that’s almost unheard of in Australia’s freight sector and proof that with the right business model and competitive pricing from Zenobē, electrification stacks up right now.”
“Together with Woolworths and the CEFC, we’re proving that large-scale zero-emissions logistics is no longer a pilot; it’s commercially viable and operationally proven.”
Woolworths Group Director Last Mile and Partnerships Sarah Pike said the new fleet would benefit both the environment and local communities.
“Our home delivery trucks are a familiar sight in suburbs across Australia,” said Pike.
“These EVs will help keep suburban streets quieter and cleaner, and make the weekly grocery shop greener for Aussie families.”
The project builds on Zenobē’s support for fleet operators nationwide, including its recently announced project with Winnings and a newly launched $100 million truck funding initiative.
Expressions of interest officially opened last month for the Zenobē Fleet Electrification Program, inviting medium and large heavy vehicle operators across Australia to participate.
Under the leasing model, Zenobē retains ownership of the trucks, allowing Woolworths to deploy the BETs during the lease term without taking on end of life risk.
The arrangement represents a one stop shop for customers who take up the lease rental, inclusive of vehicle maintenance, warranties and upgrades.
CEFC Head of Infrastructure Julia Hinwood said the investment reflects growing confidence in the commercial case for electric trucks.
“By increasing the uptake of BETs we’re helping develop the market to bring them closer to price parity with their non-electric counterparts,” said Hinwood.
“This investment reflects the commercial viability of BETs and enables Zenobē to set competitive rentals to incentivise customers to lease BETs.
“Backing deployments in hard-to-abate sectors like freight helps normalise new technologies and bring in wider private investment.”
Hinwood said that as fuel price volatility and supply risks become more significant for freight operators, early large-scale rollouts are essential to build the real-world performance data and operational benchmarks needed to support a secondary market for electric heavy vehicles.
The commitment builds on an earlier CEFC investment to deploy BETs with Zenobē and focuses solely on vehicle acquisition and leasing. Last-mile delivery operations are considered well suited to electrification, given their predictable routes, high vehicle utilisation and depot-based operations.
The deal comes as uptake of battery electric trucks in Australia continues to lag behind the strong growth seen in passenger EVs.
Of the 12,003 trucks and heavy vans sold in Australia in 2026 to date, only 0.9 per cent were electric.
The freight sector remains a significant contributor to national emissions.
Transport accounts for up to 23 per cent of Australia’s national emissions, and road freight activity is projected to grow approximately 35 per cent between 2025 and 2040, driving a 10 per cent increase in truck emissions.
By 2035, road transport is projected to make up 83 per cent of all transport emissions.
As of 31 March 2026, the CEFC has directly committed more than $260 million to electric vehicle-related projects since its inception, as part of its broader effort to help decarbonise Australia’s transport sector.
Its investments include accelerating Team Global Express’s fleet electrification, working with Volvo Group Australia to switch to medium and heavy-duty BETs, and backing Australia’s first electrified bus fleet and depot, delivered by Zenobē.
The electrification of heavy vehicles has been a key focus for the CEFC, which has helped finance more than 20,000 EVs, exceeding $1.2 billion in value, including third-party capital secured through its co-finance programs.
The Woolworths and Zenobē partnership adds further momentum to that effort, signalling that large-scale zero-emissions freight logistics has moved beyond the pilot stage and into commercial reality.