Fisker Inc. ventures into the sale of emission credits in the US, a strategic move that aims to bolster its mission of creating the world’s most sustainable electric vehicles while benefiting other automakers.
What’s Happening
Fisker Inc., a forerunner in producing sustainable electric vehicles, is broadening its business strategy to include the sale of emission credits in the United States. The company recently signed a deal to sell these credits to a notable automaker at competitive prices. Furthermore, the company plans to initiate US deliveries of their all-electric Fisker Ocean, which has received both an EPA Certificate of Conformity and a California Air Resources Board Executive Order, enabling its sale across the US.
Why It Matters
The entry of Fisker into the emission-credits market reflects a strategic move that will bolster their mission of sustainability while offering compliance solutions to other car manufacturers. “As an all-electric startup, we offer competitive choices for other carmakers to obtain emission credits and comply with US regulations,” states Henrik Fisker, Chairman and CEO of Fisker Inc.
Key Points
Fisker’s two electric vehicle models, the Fisker Ocean One launch edition and the Fisker Ocean Extreme, will generate the maximum allowable credits per vehicle — 4.0 ZEV credits — due to their superior range of 360 miles on standard 20-inch wheels and tires. Automakers can buy these credits to avoid non-compliance penalties.
Additionally, the National Highway Transportation Safety Administration (NHTSA) establishes yearly measurements for miles per gallon under the “Corporate Average Fuel Economy” (CAFE) rules. Each Fisker Ocean sold will generate roughly 395 credits, which can help automakers avoid the penalty for noncompliance.
The company also expects to generate significant non-greenhouse gas (GHG) emission credits, such as oxides of nitrogen and non-methane organic gases (NMOG+NOx credits), from the EPA’s Tier III emission requirements program. For new vehicles, each Fisker Ocean sold will generate about 159 GHG credits.
Bottom Line
By integrating the sale of emission credits into its business strategy, Fisker Inc. is not only enhancing its sustainable approach but also providing significant value to other automakers in maintaining regulatory compliance. As the company continues to innovate in the electric vehicle market, its credit strategy is expected to play a crucial role in promoting an environmentally friendly automotive industry.
