UK-based EV fleet and battery storage specialist announces £600m injection from investment firm KKR and a further £270m of equity from Infracapital
Zenobē's international expansion plans received a major boost this week, after the fleet electrification and energy storage developer yesterday announced it has secured an investment of around £600m from US-based investment giant KKR. The news came as Zenobe also confirmed a further £270m in equity investment from existing shareholder, Infracapital.
The deals, which are subject to customary closing conditions and regulatory approvals, are set to leave KKR and Infracapital as joint majority shareholders in Zenobē, with existing shareholders Jera and TEPCO Power Grid remaining as minority, strategic shareholders.
The investment represents a major vote of confidence in Zenobē's plans to extend its fleet electrification and grid-scale energy storage solutions to new markets. The company said the equity investment would play a crucial role in supporting its growth initiatives in the UK, North America, Europe, Australia, and New Zealand.
The company currently supports more than 1,000 electric buses, trucks, and commercial vehicles worldwide, and has worked with operators to deploy vehicles in over 75 depots ranging from Glasgow and Coventry in the UK to Sydney and Melbourne in Australia. It said the new investment will help it deliver on its plans to support the deployment of 4,000 electric buses, trucks and commercial vehicles by 2026, while also enabling the design and construction of number of new battery storage projects.
"Batteries are the under-recognised crucial component of our future transport and energy systems, and they're available now," said Nicholas Beatty, co-founder and director of Zenobē. "We're making huge strides in decarbonisation but it's clear that too much renewable energy is being wasted and that transport decarbonisation must move faster. Batteries are critical to optimising the use of renewable electricity and making cheaper, greener and more secure power accessible. As fleet operators transition to electric, batteries offer a proven and available technology which, combined with software and data insights, can optimise the operators' fleet while achieving zero emissions.
"Securing substantial further equity is a significant vote of confidence in our business, its achievements to date and future aims. KKR provides Zenobē with a leading international strategic partner to support our expansion plans into North America, Europe and Australasia and other markets. It supports our ability to raise further debt funding for these plans. It is also an acknowledgement that boosting battery storage and clean transport is just common sense to help us reach net zero."
Alberto Signori, partner for European Infrastructure at KKR, said the deal offered "a rare opportunity to support a clear leader in transport decarbonisation and battery storage, two sectors which are critical in driving the transition to a net zero world".
"We believe Zenobē will continue to benefit from strong secular tail winds including stricter emission regulation in urban and regional areas, and the greater use of low carbon generation in the energy mix driving a need for grid balancing solutions," he said. "We see significant growth opportunities within Zenobē's existing customer base, as well as huge potential in new markets globally. We are excited to bring our operational expertise within KKR's global platform to actively support the company in continuing to further build a market leading and climate critical business."
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