Leased zero-emission buses to save approximately 5,500 tonnes
of carbon emissions
- Highland Electric Fleets (Canada) ULC, to be the first CIB-funded
company to lease electric buses to school transportation
providers and school boards across the country.
- Hundreds of electric school buses are estimated to save
approximately 5,500 tonnes of carbon emissions
per year.
- Zero-emission buses are a proven, low-carbon transit
solution, produce near-zero tailpipe emissions and require less
maintenance than traditional diesel vehicles.
TORONTO, May 8, 2024
/CNW/ - The Canada Infrastructure Bank (CIB) has reached financial
close on a loan facility with Highland Electric Fleets
(Canada) ULC worth up to
$50 million to help finance the purchase of hundreds of
zero-emission school buses (ZEBs).
Highland Electric is first CIB-funded
company to lease ZEBs for school transportation across Canada.
Highland Electric will use the CIB loan facility to expand its
Canadian business. The electric school buses will be leased – under
Highland Electric's innovative turnkey model - to school
transportation providers and school boards to replace their aging
diesel vehicles.
The facility would provide financing at a level of $85,000 for each Type A ZEB, $100,000 for each Type C, and Type D is to be
mutually agreed upon. At these loan amounts, the facility could
help finance the purchase of up to about 500 ZEBs and save
approximately 5,500 tonnes of carbon emissions per year.
The CIB's loan will cover the higher upfront capital costs of
ZEBs, helping to accelerate the electrification of the bus
fleets. ZEBs are a proven, much quieter and more sustainable
transportation option for students. Repayment of the investment
will come from expected reduced maintenance and fuel costs over the
life of the vehicles.
The CIB loans under the facility will work in conjunction with
Infrastructure Canada's funding for zero-emission transit. Highland
Electric will be responsible for the procurement of ZEBs, design
and installation of charging infrastructure, and charge management.
Operators will be responsible for performing maintenance and
driving the ZEBs.
The CIB's Zero-emission Bus Initiative assists transit
agencies and school bus operators to transition their fleets
to modern, environmentally friendly vehicles. The CIB has committed
more than $1.5 billion towards
up to 5,000 ZEBs.
Endorsements:
Partnering with Highland Electric supports greener and more
sustainable transportation options for students, parents and school
staff for generations to come. The adoption Highland Electric's
turnkey leasing program is a unique and alternative way for school
boards and operators to implement zero-emission vehicles within
their service areas without the need to acquire the buses
themselves.
Ehren Cory, CEO, Canada
Infrastructure Bank
Investing in zero-emission transit is critical to tackle
greenhouse emissions in Canada and
to meet our net zero goals. We are incredibly proud that CIB's
partnership with Highland Electric will help do just that by
providing hundreds of electric school buses across the country.
The Honourable Sean Fraser, Minister of Housing,
Infrastructure, and Communities
At Highland, our goal is to make school bus electrification as
simple and affordable as possible, so more students can enjoy a
cleaner and healthier ride to school. Through our partnership with
the CIB, we look forward to working with school districts
throughout Canada to transform the
future of school bus transportation.
Gaurav Dubey, CFO, Highland
Electric Fleets.
SOURCE Canada Infrastructure Bank