By Letícia Fucuchima

SAO PAULO (Reuters). JBS SA (OTC:) On Tuesday, the Brazilian meatpacker announced that a new business unit was created to rent electric trucks in order to sell refrigerated cargo. It will allow the company to improve its carbon emission reduction plans and reduce logistics costs.

No Carbon is a new company that operates 31 electric urban cargo vans. They are initially being rented out to JBS-related transport firms, but No Carbon hopes to eventually expand its operations to include other companies interested in emission-free transport.

China’s JAC motors has already used the vehicles to distribute Swift, Seara and Friboi products. These vehicles will be replacing part of the current diesel-powered trucks used by logistics providers.

Urban cargo vehicles can carry up to 4 tons of cargo, and they travel 150km (93 mi) per day. This makes them great for urban centres, Armando Volpe – No Carbon’s executive Director, said to Reuters.

The Brazilian state of Parana, Santa Catarina and Sao Paulo are the areas where the electric fleet operates. There is also a federal capital region in which the recharge points can be found at JBS distribution centers.

Volpe stated that in the future the company could expand its fleet or even offer leasing services to market players such as retailers or e-commerce companies.

According to the company, each vehicle that is electric can prevents 30 tons of carbon dioxide equivalent from reaching the atmosphere every year.

Volpe stated that they will also save money due to their lower maintenance cost than conventional trucks.