Loop Energy will use a newly acquired $7.5 million grant to accelerate deployment of its new zero-emission powertrain for heavy-duty trucks. The company plans to install the powertrain in a Peterbilt Class 8 truck and deliver it to a customer for testing.

The project is being funded with a grant from Sustainable Development Technology Canada (SDTC) announced March 4.

Based in British Columbia, Canada, Loop Energy (formerly PowerDisc Development) combines an electric battery with a hydrogen fuel cell with only water vapor as exhaust.

The zero-emission powertrain will enable an annual reduction of 64 tons of carbon dioxide per truck. The Loop powertrain is suited for urban freight applications, such as yard trucks and delivery trucks operating at commercial distribution centers, and drayage trucks operating at ports, according to Loop Energy.

“This zero-emission powertrain for heavy-duty trucks is the kind of technology that has the potential to generate jobs, growth and export opportunities, and to bring lasting economic, environmental and health benefits to Canadians and the world," said Leah Lawrence, president and CEO of SDTC.

Diesel trucks are a primary contributor to the release of greenhouse gases in North America, accounting for 20% of emissions and oil use from the entire transportation sector, according to the company.