The Mayor of London’s Energy Efficiency Fund (‘MEEF‘), managed by Amber Fund Management Limited (‘Amber’), has provided a loan to Colts Cabs Limited (‘Colts’) to fund 30 LEVC TX vehicles through an innovative and flexible pay-per-mile mechanism managed by Zeti Limited (‘Zeti’).
Zeti developed the innovative financing structure for vehicles leasing based on a pay-per-mile principle measured against the per mile usage of vehicle fleets, utilising their unique platform, ZERO. The structure includes a minimum mileage to protect the lender. The Zeti ZERO software platform allows fleet operators to produce granular real-time vehicle data and to track the vehicle location. The facility is paid off once the vehicle has reached the agreed mileage.
MEEF is looking to replicate this finance mechanism with Zeti for further deals in the taxi sector and in other transportation sectors.
Colts, a London based Small Medium Enterprise (‘SME’), is one of London’s largest black cab fleet operators having been in operation since 1991 with over 800 vehicles. Colts rents the black cabs to individual licensed black cab drivers who meet the TfL fit and proper person test.
The current fleet is predominately diesel and Colts along with its sister company Fulham Cabs Limited (‘Fulham Cabs’) are looking to increase their combined electric fleet to 2,000 vehicles by 2025.
The LEVC TX is a plug-in-hybrid with an electric range of 63 miles capable of rapid charging with a small petrol engine to extend the range of the vehicle. The LEVC TX has a number of advantages over the older diesel black cabs, including reduced maintenance costs and improved fuel economy. Each cab is forecast to reduce carbon emissions by 3.9 tonnes and reduce NOx emissions by 99.5%[1]. Overall, the 30 cabs will save 116 tonnes of CO2 per year, the equivalent of taking over 105 cars off the road.
This project is an important step in tackling London’s air pollution and supports the Mayor of London, Sadiq Khan’s commitment to zero emission transport in the capital.
This is MEEF’s third investment in the low carbon mobility sector. Eligible projects include EV charging, alternative fuel stations and hydrogen fuel cells.
Since launching in July 2018, MEEF has made investments in EV charging, district heating, streetlighting and energy efficiency sectors creating energy savings of over 39 million GWh. Due to the success of MEEF to date, the GLA has agreed to increase the public sector commitment in the Fund up to £30.2 million.
Zeti were advised on this transaction by EY and MEEF was advised by Verco and Burges Salmon, respectively.
Deputy Mayor for Environment and Energy, Shirley Rodrigues said: “The Mayor has set the ambitious target of making London net zero carbon by 2030. This project is a great example of how the Mayor of London’s Energy Efficiency Fund is supporting schemes that help deliver this goal, and how London can accelerate climate action through a combination of public and private sector capital investment. At COP26, the Mayor announced a further £30 million for MEEF to support further zero carbon transport and infrastructure projects like this.
A third of London’s black cabs are now electric, helping to tackle the twin dangers of air pollution and climate change and we are delighted that MEEF is helping more of our black cabs to go green.”
Pete Radford, Director of MEEF: “We are delighted that MEEF is supporting Colts Cabs transition their fleet to zero emissions capable taxis. By working with Zeti and utilising their innovative financing platform, ZERO, MEEF will have access to real time finance and environmental data, demonstrating the impact MEEF is making in improving London’s air quality. With the Mayor recently announcing further funding for MEEF we look forward to continuing to support the Capital’s fleets transition to low carbon vehicles.”
Dan Saunders, Founder & CEO of Zeti: “Zeti is revolutionising the financing of transport, focusing on clean and connected vehicle fleets. We’re delighted to be working with the team from MEEF and Amber Infrastructure to accelerate the adoption of zero emission capable mobility in London and support the Mayor’s goal of improving air quality for all of London.”
Please contact MEEF (meefinfo@amberinfrastructure.com) to discuss a potential application further.
Further information on MEEF can be found at: www.meef.co.uk
Further information on Amber Infrastructure can be found at: www.amberinfrastructure.com
[1] Based on LEVC data
NOTES TO EDITORS:
ABOUT MEEF
MEEF was established by the GLA in 2018 and is managed by Amber Infrastructure. MEEF provides a mixture of senior debt, mezzanine debt and equity to London’s public-sector property owners and small-to-medium-sized businesses, including but not exclusively, Local Authorities, NHS Trusts, Registered Providers, Higher and Further Education organisations, Charities and Voluntary Organisations, ESCOs and SMEs. MEEF can fund both up to 100 per cent of the capital cost of a project and part-fund large-scale regeneration projects which demonstrate low-carbon credentials.
ABOUT AMBER INFRASTRUCTURE GROUP
Amber Infrastructure (‘Amber’) is a specialist international investment manager, focused on investment origination, asset management and fund management. Amber’s core business focuses on sourcing, developing, advising, investing in and managing infrastructure assets across the public, transport, energy, digital and demographic infrastructure sectors that support the lives of people, homes and businesses internationally.
Amber is headquartered in London with offices in Europe, North America and Australia and employs over 150 infrastructure professionals.
ABOUT EUROPEAN REGIONAL DEVELOPMENT FUND
MEEF has received up to £51.2 million of funding from the England European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme 2014-2020. The Ministry of Housing, Communities and Local Government (and in London the intermediate body Greater London Authority) is the Managing Authority for European Regional Development Fund. Established by the European Union, the European Regional Development Fund helps local areas stimulate their economic development by investing in projects which will support innovation, businesses, create jobs and local community regenerations. For more information visit https://www.gov.uk/european-growth-funding
ABOUT COLTS
Colts Cabs is London’s largest independent licensed taxi rental company, proudly serving the taxi trade and London for 30 years.
ABOUT ZETI
Zeti sits at the intersection of fintech, mobility and sustainability, unlocking the potential of technology to revolutionise the financing of transport and support the goals of business and society. Established in 2020, Zeti connects transport fleet operators with institutional financiers through its patent-pending FinTech platform, ZERO, to enable pay-per-mile vehicle finance for zero and ultra-low emission connected vehicles. For progressive companies, Zeti’s financial technology makes adopting EVs as simple, transparent and flexible as paying for a utility. Further information can be found at zeti.co.uk