Royal Mail has signed an agreement to buy 100 electric delivery vans.
Peugeot will provide the L2 Electric vans, which will be used by postmen and women on their delivery rounds.
They zero-emission vans will go into service from December this year at delivery offices across the UK and will be supported by a rollout of charging infrastructure.
It is said to be one of the largest single purchase of electric commercial vehicles to be placed in the UK.
According to Peugeot, the electric vans will be able to carry a payload of 552kg and the batteries can be recharged to 80% capacity in 30 minutes from a dedicated charge point.
Paul Gatti, Royal mail Fleet Director said: “Our research has shown that electric vans are a good operational fit with our business and we are delighted to be ordering such a large volume to use in our daily operations.
“This is good news for our customers and the towns and cities which we serve. It also means we are on the front foot for future changes in emissions legislation.”
The news comes as the government proposed changes to driver licensing rules that is expected to make it easier and quicker for van drivers to switch to greener vehicles.