Major EV player Zenobē secures $20m funding to enter NZ market 

UK-based EV fleet and battery storage specialist Zenobē has received $20 million from publicly-funded New Zealand Green Investment Finance (NZGIF) to make its entry into the Kiwi market.

It will support Zenobē with the deployment of electric bus fleets under long-term lease agreements with major operators in New Zealand. A further $30 million is being held in reserve to support additional uptake.

The first assets to be financed will be a fleet of 18 e-buses leased to one of New Zealand’s largest operators, Go Bus. 

The NZGIF was set up by the Government in 2019 and aims to accelerate investment that supports New Zealand’s low carbon future.

NZGIF says it hopes to send a strong signal to the public transport sector that commercial, zero-emission solutions will be more accessible.

The deal is designed to smooth the transition from combustion engine (ICE) to e-buses for operators, removing technological and financing risk through competitive pricing, it says.

NZGIF chief executive Craig Weise says he is pleased the fund is enabling another first for the New Zealand market.

“This deal brings Zenobē’s expertise in fleet electrification and putting together bespoke funding structures to New Zealand. 

“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 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,” Weise says. 

New Zealand’s public transport bus fleet currently produces an estimated 155,000 tonnes of CO2 emissions per annum and the Government has a target to decarbonise the public bus fleet by 2035.

It is estimated that fewer than 5% of the 2600 public buses in operation in New Zealand are electric.

Weise says that NZGIF expects many operators will be looking at commercially competitive ways to achieve the 2035 decarbonisation goal.

“The Government has already announced that by 2025 it will only allow zero-emission public transport buses to be acquired. 

“Those targets are approaching, and I know many operators will be looking at how to achieve that. NZGIF has the flexibility with terms and tenor to provide competitive and attractive finance options, and now we have the expertise from an experienced partner in Zenobē.”

Zenobē offers end-to-end fleet electrification solutions, from planning and power procurement, to vehicles, charging infrastructure and software. 

The company has around 25% share of the e-bus market in the UK and also has operations in Europe and Australia with around 540 buses currently contracted globally. Across the ditch it is delivering Australia’s largest electrified depot pilot.

Zenobē co-founder and director Steven Meersman says transport operators across the globe are realising the benefits of leasing batteries and outsourcing electrification to speed up and simplify delivery of zero emission transport.

“We’re delighted to be able to work with NZGIF to bring this e-bus rental facility to New Zealand as we continue to see a shift to more sustainable transport solutions at the foundation of achieving net zero.

“Through our work with major clients such as National Express, Stagecoach and Transit Systems, we have established ourselves as a reliable industry partner in making battery and fleet electrification services a reality.

“With our experience, capabilities, and award-winning software, we can lead our customers on the pathway to zero emission transport at a rapid pace, with complete solutions from infrastructure installation, to financing and battery replacement. This means that operators can build a bespoke electrification solution based on their specific needs,” Meersman says. 

Meanwhile, Go Bus has already been rolling out e-buses in in both Auckland and Christchurch with a total 34 battery electric buses in operation currently, and a further 16 to be ordered shortly. 

Zenobē Australia and NZ country director Gareth Ridge says that the company is also in talks with a second major operator.

“What’s particularly exciting about this announcement is that the facility we have agreed with NZGIF has the capacity to switch roughly 40 buses to electric. 

“This initial project showcases just one element in our turnkey offering that de-risks and expedites the e-bus transition for fleet operators in New Zealand.

“With further capacity in the facility, we welcome conversations with operators of all sizes in New Zealand looking to reach their decarbonisation objectives and trial electric buses.”