The ‘first of its kind’ GBP 241 million multi-source debt funding structure platform will enable Zenobē Energy to initially service and finance up to 430 new e-buses in the UK and Republic of Ireland.
DNV, the independent energy expert and assurance provider, has acted as technical advisor to Zenobē Energy as it secured a GBP 241 million structured finance deal to expand its electric vehicle (EV) offering.
DNV conducted independent technical due diligence of Zenobē Energy’s portfolio of 430 electric buses and depots in the UK and Republic of Ireland, to assess the technical risks for this innovative and bespoke funding package deal for the lenders.
DNV provided a tailored scope including battery replacement cost forecast, technical site portfolio review, vehicle useful economic life assessment, estimation of CO2 savings, and charging performance review to enable a complete appraisal of the business case.
The UK Government has signalled the transition to zero-emission EVs by announcing investment and laws to advance the electric vehicle revolution, including bringing forward the phase-out date for the sale of new petrol and diesel cars and vans to 2030.
DNV’s Energy Transition Outlook forecasts that the electrification of road transport is fast. By 2050, more than 90% of all passenger vehicle sales will be EVs.
It is anticipated that there will be 1.3 billion passenger electric vehicles on roads around the world by mid-century, as oil demand more than halves in the transportation sector.
Hari Vamadevan, Regional Director UK & Ireland of Energy Systems at DNV, said: “We are delighted to have provided our in-depth independent technical knowledge to support Zenobē Energy in its efforts to secure funding to expand its operations across the UK and Republic of Ireland.
“The pioneering funding platform will enable Zenobē Energy to provide services to accelerate the transition to a green road transport system. Achieving a greener transport future will help to meet legally binding climate change targets and improve air quality across the UK and Ireland.”
Tim Boothman, Director of Corporate Finance at Zenobē Energy, said: “We were grateful for DNV’s commercial and technical support in reviewing our e-bus portfolio. The DNV team was able to communicate effectively the nature of the technology to our lenders and take a clear view on the risk mitigation measures we have put in place.”
Zenobē Energy is a UK market leader in EV fleets and battery storage, with 175 MW of operational and contracted storage assets and 394 EV buses or an estimated 25 per cent market share of the UK operational EV bus sector. It currently works with all major bus operators in the UK.
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