Decarbon Daily - Tailwinds for EV Charging Solutions
Inside this issue
EV Outlook Improves
This summer BloombergNEF released it's electric vehicle outlook which was the first increase to the outlook in five years.
EV sales were up 97% year over year in North America and 153% in Europe. More and more vehicles are coming to market with numerous automobile manufacturers embracing efforts to reduce vehicle emissions and electrify commercial and consumer vehicles.
Cathy Zoi, EVgo's CEO also pointed to positive sales growth:
EV sales were brisk in the first half of the year with over 200,000 EVs sold in the U.S. through June. About one third of 70,000 of which we estimate were non-Tesla vehicles reflecting, increasing adoption and additional vehicle options available to drivers. EV sales in the U.S. for the full year are expected to continue to accelerate driven by long-term industry growth fundamentals.
Policies Favor EV Transition
President Biden issued an executive order calling for half of all new vehicles to be zero emission by 2030. Similarly in Canada, the Trudeau administration set a target of 100% zero emission vehicle sales by 2035.
ChargePoint's CEO Pasquale Romano stated:
This collection of efforts has the support of many major automakers. It helps create category awareness and we expect the pace of electrification to continue to accelerate. We are also seeing unprecedented progress in infrastructure funding.
The US Senate included $7.5 billion to expand charging solutions in the infrastructure bill. Policy actions are building towards heavy investment in charging solutions across North America.
Cathy Zoi, EVgo's CEO said this in the
... the federal policies that we’re seeing emerging from Washington right now are a big accelerant. And they’re incredibly important. I mean, the UN climate change report of a couple of days ago was the wakeup call for everybody that hadn’t already woken up. And so we’re now needing to move very, very quickly to actually – to accelerate climate solutions across all sectors. And obviously transportation is a big one.
Partners for Growth Capital
EVgo presents an interesting model available to the charging solution companies:
1. Build charging stations solely with their capital
2. Partner with auto manufacturers to reduce by up to 33%
3. Use state, local, or utility incentives to offset costs by 5% or more than 50%
CapEx per stall is roughly $110,000, which includes both the equipment and third-party labor bringing all in installed costs to somewhere between $400,000 and $700,000.
The company intends to use about $400 million of the capital it raised to build out charging stations. With this model, the company can stretch the capital for more charging stations through partnerships and local agencies. For example, EVgo is partnered with GM as the preferred charging provider for Ultium Charge 360 fleet service.
Inside this Issue
❇️ Shell Venture Eyes Creating Hydrogen Supply and Demand
☁️ Eni and Progressive Energy aim to cast HyNet as CCUS Vanguard Project
🌏 Energy Agency Urges Bigger Global Push to Cut Emissions
🏭 Chevron Sets Goal of Cutting Carbon Emissions in Operations, but Not for Products
🔋 Infrastructure Bill Could Cut Carbon Emissions By Nearly a Gigaton
💡 WattBuy Secures $10 Million to Drive Clean Energy Innovation
Articles in this issue