Big rig electrification race: Tesla faces competition from this climate startup.

• Although big rigs represent only 10% of the vehicles on the road, they contribute to approximately 30% of total vehicle carbon emissions.
• Unlike its competitors, Range Energy concentrates on electrifying trailers instead of tractors.
• The trailer can both power its own refrigeration and onboard communications and security systems.

While cars and small trucks are making progress towards electrification, big rigs present greater challenges.

The issue with electrifying tractor-trailer trucks is that the tractor part requires more power than the existing charging infrastructure can handle, and the charging time is lengthy.

Electric tractor-trailer trucks are being introduced by major manufacturers like Volvo and Freightliner, but the market for these vehicles remains small and inefficient. Despite accounting for only 10% of the vehicles on the road, big rigs contribute nearly 30% to total vehicle carbon emissions.

One California-based startup, Range Energy, is concentrating on the trailer rather than the tractor. They are launching electrified trailers that can power and propel themselves, reducing the amount of work the tractor has to do.

Range Energy CEO Ali Javidan stated, "Our Range system can manage the load of the trailer properly, so why not electrify the trailer directly through our system for a unique approach?"

The Range Energy system includes a motor that powers one of the trailer's dual axles, batteries, and a 'smart kingpin' to enhance the truck's efficiency, as described by Javidan.

"As Javidan demonstrated the system, he stated, 'When I press this button to activate the system, the trailer follows me. Regardless of whether I'm an old Peterbilt semi-truck or a brand new Tesla semi or simply me pulling on it with the system activated, the trailer's objective is to feel weightless.'"

The trailer with electrification capabilities can also cool itself, operate onboard communications and security systems, and do so at a lower cost compared to diesel.

"Javidan stated that if we were to integrate the range system into a fleet of 3,000 trailers, we could save 100 million pounds of CO2 annually and achieve $50 million in fuel savings."

Northern Refrigerated Transportation is currently testing Range trailers in California after finding that the long charging times of electric tractors were a challenge, according to Ricky Souza, COO at the company.

According to Souza, Range Energy's "trailers seem more of a natural fit because we load them at night while they charge, which reduces the dependence on a driver waiting for it."

Before electrifying its entire fleet of over 300 trucks, Northern Refrigerated Transportation must overcome significant obstacles.

"Souza stated that there are infrastructure challenges, such as obtaining power to buildings and properties, which adds to the cost of the unit. This is an important aspect of conducting due diligence to determine if the investment will result in fuel savings."

R7, UP.Partners, Trousdale Ventures, and Yamaha Motor Ventures have backed Range Energy, which has raised $31.5 million so far.

R7's founder and general manager, Tyler Engh, stated that the allure of Range Energy's technology lies in its distinctive strategy for addressing the challenge of electrifying tractor-trailers.

""Electrifying trailers could accelerate mass adoption of hybridization or electrification on current fleets with diesel semis, and this company has the potential to become huge with venture capital investment," Engh said."

Javidan suggests that trucking companies can utilize the power available at loading docks to improve charging infrastructure, as Northern Refrigerated Transportation is already doing. Additionally, Range Energy is able to size battery packs more similarly to those found in passenger vehicles rather than large commercial vehicles, according to Javidan.

CNBC producer Lisa Rizzolo contributed to this piece.