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BYD and Generate Capital to Launch First-Ever U.S. Partnership for an Electric Bus Leasing Program $200 million allocated to lease program to accelerate adoption of private and public sector electric buses

2018-07-11

The world's largest manufacturer of electric vehicles, BYD Motors has announced a joint venture to launch the first electric bus leasing program of its kind in the United States in partnership with Generate Capital, Inc., a leading financier, owner, and operator of distributed infrastructure. $200 million will be allocated to this pioneering lease program, which will help public and private sector clients accelerate the adoption of battery-powered electric buses by reducing upfront costs. In doing so, the program will also help provide cleaner, quieter, safer, and more fiscally responsible transportation choices.
The US currently has around 300 electric buses in the country, two-thirds of which are manufactured by BYD. BYD and Generate Capital believe there is substantial room for growth in the US electric bus market as the current fleet size is a fraction of the roughly 345,000 electric buses[1] operating around the world. The Generate-BYD partnership aims to provide private sector clients and smaller municipalities with the same access to clean transportation options that larger municipalities use to save substantial money, because electric buses are cheaper to run over the life of the asset.
 “BYD's mission is to fundamentally change the world by reducing our dependency on carbon-based fuels through the development and advancement of battery and electric vehicle technology,” said BYD Motors's President Stella Li. “This partnership will be critical in that effort by creating new financing alternatives to a broader range of clients.”
BYD client Antelope Valley Transit Authority (AVTA) in Los Angeles County estimates a cost savings of more than $46 million over the lifetime of a new fleet by electrifying its buses; equivalent to approximately $46,000 per bus per year in savings compared to an all diesel fleet. In addition, AVTA estimates that noise pollution will be reduced by 50% and that the all-electric fleet will provide elimination of CO2, NOx, PM10 and PM2.5, improving air quality. AVTA will become the nation's first 100% electric bus fleet by the end of 2018.
“We founded Generate Capital to bring precisely this type of proven solution to the world,” said Scott Jacobs, Generate Capital's CEO and co-founder. “Electric buses produce almost no greenhouse gas emissions; they're cheaper to operate than diesel buses; have lower maintenance costs; and they're quieter and more pleasant for the rider. Traditional leasing companies typically don’t value any residual in electric vehicles, which makes financing difficult. Programs like these are an all-around win for project developers, customers, and for the environment.”
This innovative lease program has secured several clients, including prominent universities, top corporations and smaller municipalities. According to the U.S. Department of Transportation, every zero-emission bus eliminates approximately 1,690 tons of CO2 over a 12-year period. This is equivalent to taking 27 cars off the road. These buses also eliminate approximately 10 tons of nitrogen oxide, and 350 pounds of diesel particulate matter.
[1] 2017 Global EV Outlook