JUNO BEACH, Fla., Jan. 26, 2021 /PRNewswire/ -- First Student,
Inc., First Transit, Inc., and NextEra Energy Resources, LLC today
announced they have entered into a framework agreement and are
working toward a joint venture to pursue the electrification of
tens of thousands of school and public transportation vehicles
across the U.S. and Canada. The
collaboration brings together North
America's market leaders in school and public transportation
and renewable energy to foster innovation and accelerate the mass
adoption of zero-emission vehicles.
The transition to electric vehicles for the school and public
transportation sector is expected to play a critical role in
helping communities improve air quality and environmental health
for student passengers, transit riders and area residents. In
addition, utilizing the sizeable batteries of school and public
transportation electric vehicle fleets for distributed energy
storage and grid services has the potential to make a significant
contribution to long-term sustainable clean energy transition in
North America.
Student transportation market
The U.S. and Canada combined
represent the largest homogeneous student transportation market in
the world, with approximately 520,000 yellow school buses in total.
This market has remained consistent in size over time, with certain
favorable factors driving fleet conversion to electric vehicles and
potential V2G development:
- Increasing demand for
clean, pollution-free school buses from schools, communities,
parents, and student passengers.
- Strategic location of school bus depots for installation of
necessary charging, storage and grid connection infrastructure.
- Low utilization and predictable daily schedules of school
buses, providing greater opportunity to optimize power charging and
balance the grid.
The companies are collaborating to address these market
opportunities by first capitalizing on First Student's fleet of
43,000 yellow school buses, the single largest fleet in
North America, and nearly 500
depots located across 40 U.S. states and seven Canadian provinces.
Combining this scale with NextEra Energy Resources' expertise is
anticipated to help accelerate electrification from individual
pilots to broader fleet rollout across the U.S. and Canada.
Transit market
The U.S. and Canada combined
represent one of the world's largest public transit markets, with
approximately 160,000 buses and other vehicles in total. In
addition, there are significant fleet opportunities in shuttle
services that address a variety of passenger transportation
needs.
These markets have demonstrated long-term stability servicing a
range of clients such as municipal transit authorities, airports
and universities. The transit market is equally anticipating a
shift to electric vehicles, driven by an increased emphasis on
delivering clean, pollution-free transit solutions.
The collaboration intends to focus on First Transit's base of
more than 300 customers to create new business opportunities and
revenue streams associated with fleet electrification.
Executive quotes
President of First Student, Paul
Osland, commented: "We are proud to take this significant
step to improve the environmental health of our student passengers
and the communities we serve. We have found a world-class partner
in NextEra Energy Resources, who shares our vision of the
importance that electrification and zero emission technologies will
play in the future of student transportation. The electrification
of school buses has already started and is poised to accelerate
rapidly. This collaboration will position First Student as
North America's leading owner and
operator of electric school buses."
President of First Transit, Brad
Thomas, remarked: "First Transit has led the way in mobility
solutions for more than 60 years. With battery and electric vehicle
prices falling rapidly, and with an increasing focus on
sustainability, many fleets are preparing for wholesale
electrification. The collaboration with NextEra Energy Resources
will position First Transit as the leading provider of sustainable
passenger transportation solutions in North America."
President and CEO of NextEra Energy Resources, John Ketchum, added: "The growing shift away
from internal combustion engines is expected to drive over one
fifth of U.S. energy demand by 2050. Working with First Student and
First Transit will enable future investments in electrification
upgrades and charging stations, as well as energy management
services. As demonstrated by our recent acquisition of EIQ, the
market leading software platform for quantifying the value and
timing of fleet conversions, this collaboration is consistent with
our strategy as we continue to explore potential opportunities for
electric and hydrogen transformation of the transportation
sector."
Both First Student and First Transit are part of FirstGroup plc,
a leading provider of transport services in the UK and North America. The collaboration aligns with
FirstGroup's Mobility Beyond Today strategic framework, and the
Group's ambition to be the partner of choice for innovative and
sustainable transport, accelerating the transition to a zero-carbon
world.
Rothschild & Co acted as sole financial advisor.
NextEra Energy Resources
NextEra Energy Resources, LLC (together with its affiliated
entities, "NextEra Energy Resources"), is a clean energy leader and
is one of the largest wholesale generators of electric power in the
U.S., with approximately 21,900 megawatts of net generating
capacity, primarily in 37 states and Canada as of year-end 2019. NextEra Energy
Resources, together with its affiliated entities, is the world's
largest generator of renewable energy from the wind and sun and a
world leader in battery storage. The business operates clean,
emissions-free nuclear power generation facilities in New Hampshire and Wisconsin as part of the NextEra Energy
nuclear fleet, which is one of the largest in the United States. NextEra Energy Resources,
LLC is a subsidiary of Juno Beach,
Florida-based NextEra Energy, Inc. (NYSE: NEE). For more
information, visit www.NextEraEnergyResources.com.
About First Student, Inc.
As the leading school transportation solutions provider in
North America, First Student
strives to provide the best start and finish to every school day.
First Student completes five million student journeys each day,
moving more passengers than all U.S. airlines combined. With a team
of highly-trained drivers and the industry's strongest safety
record, First Student delivers reliable, quality services including
full-service transportation and management, special-needs
transportation, route optimization and scheduling, maintenance, and
charter services for 1,100 school district contracts. For more
information, please visit firststudentinc.com.
About First Transit
First Transit, Inc. has more than 60 years of experience and is
the largest private-sector provider of mobility solutions in
North America, moving more than
300 million passengers annually. First Transit, Inc. provides
operation, management and consulting for more than 300 locations in
39 states, Canada and Puerto Rico for transit authorities, state
departments of transportation, municipalities, airports,
universities and private companies. First Transit employs more than
19,000 dedicated transit professionals. For additional information,
please visit FirstTransit.com. To see how First Transit is leading
the way in shared autonomous vehicle (SAV) initiatives, please
visit FirstAV.com.
About FirstGroup plc
First Student and First Transit are part of FirstGroup plc (LSE:
FGP.L). With £7.8 billion in revenue in the year to 31 March 2020 and around 100,000 employees, we
transported 2.1 billion passengers in the year. Whether for
business, education, health, social or recreation – we get our
customers where they want to be, when they want to be there. We
create solutions that reduce complexity, making travel smoother and
life easier. We provide easy and convenient mobility, improving
quality of life by connecting people and communities. Visit our
website at www.firstgroupplc.com and follow us @firstgroupplc
on Twitter.
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SOURCE NextEra Energy Resources, LLC