DNV, the
independent energy expert and assurance provider, has acted as technical
advisor to Rock Road as it secured a £100 million funding platform to finance
up to 250 zero-emission buses and associated infrastructure across the UK.
Rock Rail,
the UK Infrastructure Bank and Aviva, through its in-house capital unit Aviva
Capital Partners, have formed a partnership to provide a new funding platform
for zero emission bus financier ‘Rock Road’ for UK bus operators and public
transport authorities to decarbonize their fleet, while minimizing capital
outlay and mitigating key ownership risks. The partnership, alongside a debt
facility from UK Infrastructure Bank and HSBC UK, is committing an initial
£100m.
DNV advised
the partnership on its first deal to fund 60 battery-electric buses that will
be leased to The Go-Ahead Group and deployed on routes throughout London,
reducing carbon emissions and improving air quality across the capital.
DNV
conducted independent technical due diligence on a portfolio of single and
double decker e-buses for use on routes across the Capital. In addition to
technical aspects of e-bus operations, DNV provided a tailored scope which
included forecast costs for lithium-ion battery replacements, analysis of the
battery strategy (including degradation and duty cycle analysis), analysis of
warranty documents, fault history analysis, and vehicle charging strategy. This
analysis and pragmatic due diligence process helped to provide confidence to
investors on technical aspects of the e-buses, such as potential battery
lifetimes and battery replacement costs, which are a fundamental consideration
for the commercial offering.
DNV’s Energy Transition
Outlook UK 2024
forecasts that electric vehicles are leading the charge to decarbonize road
transport. By 2040, approximately 98% of all vehicle sales will be battery
electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs) or fuel cell
electric vehicles (FCEVs).
Hari Vamadevan, Senior Vice President, and Regional Director UK
& Ireland of Energy Systems at DNV,
said: “We are delighted to have provided our
in-depth independent technical knowledge to support the effort of Rock Road and
its investors to secure funding to expand the electric bus fleet across London.
The electrification of
transport is a core element of the UK’s Net-Zero strategy. This project is a
key step in decarbonizing public transport in metropolitan cities in the UK,
improving air quality in high traffic areas and providing state of the art
transport to passengers.”