Green technology company Nuvve Holding Corp. (Nuvve) and private equity firm Stonepeak Partners LP (Stonepeak) are launching a new joint venture to help accelerate the deployment of electric vehicles (EVs).
The joint venture, called Levo Mobility (Levo), will use Nuvve’s vehicle-to-grid (V2G) technology to help support the deployment of EVs, including thousands of electric school buses nationwide, through V2G hubs and Transportation-as-a-Service (TaaS), according to a news release from Nuvve. Stonepeak, along with its portfolio company Evolve Transition Infrastructure LP (Evolve), will reportedly provide up to $750 million in capital to Levo.
With an initial focus on electrifying school buses and charging infrastructure, Levo will implement V2G services that support carbon dioxide emissions reduction, renewable energy integration, and improved grid resiliency. Levo also plans to work with commercial fleets, such as last-mile delivery, ride hailing and ride sharing, and municipal services, according to Nuvve.
Beyond intelligent charging, Nuvve’s V2G platform allows EV batteries to store energy, including renewables such as solar and wind, and then safely discharge part of this stored energy back to the grid while parked and plugged in. Additionally, V2G allows EVs to earn revenue by combining energy from multiple batteries to form virtual power plants (VPPs) and access energy markets, sell energy back to the grid, and perform services that stabilize the grid.
Levo’s focus on school buses comes at a time when the Biden-Harris Administration has prioritized electrification of the 480,000 school buses in the U.S. through its Infrastructure Plan. Building on this, lawmakers recently announced a $25 billion bill, called the Clean Commute for Kids Act, to electrify school buses and, increasingly, school districts are looking to transition their fleets to zero-emission vehicles.
To help alleviate operators’ concerns of high vehicle costs and the management of charging infrastructure, Levo plans to include a fully financed offering that covers the upfront costs of electric buses coupled with a complete charging solution powered by Nuvve’s V2G technology, according to the company. Levo’s customers would reportedly sign contracts for their electric fleets, regardless of size, that would provide predictable and known budget savings.
“Through our relationship [with Stonepeak], we plan to remove barriers that currently exist for school districts and other fleet operators to convert to electric vehicles,” said Gregory Poilasne, chairman and CEO of Nuvve. “At the same time, we are expanding the use of Nuvve’s V2G technology to lower the total cost of ownership for end users.”
Trent Kososki and William Demas, managing directors at Stonepeak, added that the firm’s partnership with Nuvve “will create exciting opportunities for growth,” and that the “transition to electrification of transportation represents a meaningful opportunity to accelerate solutions to combat climate change.”
Definitive agreements for Levo are expected to be signed, and closing is expected to occur prior to the end of July 2021, according to Nuvve.