Fleet electrification and battery storage specialist Zenobē has funded more than 280 electric buses under a committed finance framework agreement (CFFA) with bus operator Go-Ahead.
The move is designed to significantly reduce the cost, complexity and execution of electric vehicle deployments across its operations, the company said.
Zenobē and Go-Ahead Group (GAG) have been working together since 2021, and the CFFA one of the first of its kind in the bus industry – providing GAG with a pre-agreed, scalable credit line that can be drawn down as required to support its ambitious fleet electrification programme.
To date, more than 280 vehicles from four different OEMs have been funded under the CFFA. A key benefit is flexibility, with the Go Ahead Group planning to electrify its entire fleet by 2035, the ability to access financing exactly when it is needed is critical.
The CFFA also enables faster access to funding, as it can now be drawn down quickly under pre-agreed terms. It also provides cost certainty for the operator, supporting more effective long-term planning, and deliver lower monthly payments as more vehicles are financed, the company said.
Steven Meersman, Founder and Director, Zenobē, said:
“This agreement marks a significant step forward in how public transport operators can finance the transition to zero-emission fleets.
“We’ve worked closely with Go-Ahead for many years, and this first-of-its-kind framework gives them the flexibility, speed and cost certainty they need as electrification accelerates.
“The move away from diesel buses is inevitable – the question is how quickly operators can scale. By removing repetitive negotiations and enabling funding to be drawn down rapidly under pre-agreed terms, we’re making it easier, faster and more cost-effective to deploy electric vehicles at scale, while allowing operators to stay focused on running their networks.”
Gonzalo Velasco, Group Structured Finance Director, Go-Ahead Group said:
“Electrifying our bus fleet at pace is central to our strategy, but it requires financing solutions that are flexible, scalable and quick to execute. This committed finance framework with Zenobē gives us certainty that funding is available when we need it, while removing unnecessary complexity and delay.
“As routes are awarded on a franchise-by-franchise basis, the ability to draw down funding rapidly under pre-agreed terms supports more effective planning and enables us to accelerate the rollout of zero-emission buses, while continuing to focus on delivering reliable services for passengers.”
The news comes as the Transport + Energy Fleet Electrification Forum on 8 July at Warwick Conferences is set to discuss the issue. Find out more about the event here.
Image courtesy of Zenobē
