The mayor of London, Sadiq Khan, announced last week that he intends to rent a company to rent refrigeration, storage and heating equipment.
The City of London Corporation (CLC), which manages the city’s municipal fleet of 1,400 refrigeration and storage vehicles, will lease the equipment and operate it out of a central London building.
The contract is worth about £200,000 ($290,000) a year, the mayor’s office said in a statement on Wednesday.
The contract is the latest in a series of city-owned projects that aim to transform the city into a more energy-efficient hub.
In September, the city launched a pilot program to convert the citys entire fleet of cars, buses, and vans to electric power, while also using natural gas as a citywide heating source.
CLC CEO Mark Tully said in the statement that the new lease will allow it to reduce CO2 emissions, as well as to improve the efficiency of its refrigeration vehicles.
“As part of the ongoing transformation of London’s transport infrastructure, we believe this will be a very important part of our strategy for the long-term,” he said.
The company has been operating a fleet of about 800 refrigeration trucks, trailers, and trailers since its inception in 2007.
In May, the London mayor signed an agreement with the U.K.’s Department for Transport (DfT), which is responsible for citywide transport operations, to lease the company’s refrigeration service to London.
The city will pay a fixed price per month for the contract, but the mayor said that his administration is exploring other options.
“The cost of operating this service will be shared with the DfT to meet the [project’s] long-run operating costs, and to give the company a strong business case for future expansion,” Khan said in his statement.