New Zealand backs Zenobe to fast-track electric bus fleets

The New Zealand government is hoping to fast-track the roll out of electric bus fleets across the country with a $NZ20 million loan from its green bank to support London-based EV fleet and battery storage specialist Zenobē.

The New Zealand Green Investment Finance (NZGIF) said this week it is providing a $NZ20 million finance facility to help Zenobē deploy electric bus fleets under long-term lease agreements with major operators across Aotearoa.

A further $NZ30 million could be offered to support additional uptake, which NZGIF said it hoped would send a strong signal to the country’s public transport sector that commercial zero-emission solutions were more accessible.

“This deal brings Zenobē’s expertise in fleet electrification and putting together bespoke funding structures to New Zealand,” said Craig Weise, NZGIF CEO.

“The flexible rental contracts enable operators to take the time to understand the operational changes required as they transition to battery electric vehicles. This allows them to adapt and/or grow, minimising the usual level of risk.

“We are pleased with this deal for a number of reasons but particularly so as it is in the transport sector, which accounts for 21% of New Zealand’s annual greenhouse gas emissions and is the fastest growing source of emissions.”

NZGIF’s funding will help to smooth the transition from ICE buses to electric buses for operators up and down New Zealand, removing technological and financing risk through ensuring pricing for electric buses is competitive with traditional ICE buses.

It is also expected that the $NZ20 million will help to switch approximately 40 buses to electric, and the further funding facility will only increase this opportunity for New Zealand’s public transport sector.

Among the first assets to be financed will be a fleet of 18 electric buses which will be leased to one of New Zealand’s largest bus operators, Go Bus Transport.

“As the leading passenger transport company in New Zealand, Go Bus has been at the forefront of electric bus development in the country with EV operations in both Auckland and Christchurch,” said Calum Haslop, CEO of Go Bus and Head of New Zealand for parent company Kinetic.

“With a total 34 battery electric buses in operation currently, and a further 16 to be ordered shortly, we place high value in suppliers who reduce the barriers and risks as we move through our transition to zero-emission buses.”

Zenobē country director for Australia and New Zealand, Gareth Ridge, also noted that the company was already in talks with a second major New Zealand operator.