Axios Pro: Climate Deals

November 15, 2022

Axios Pro Exclusive Content

Welcome to Tuesday. Let's dive in.

🤝 Situational awareness: Chinese leader Xi Jinping and President Biden agreed yesterday to resume climate change cooperation between their two countries, the world’s top emitters.

  • It’s not clear exactly what the agreement means, but it reverberated at the ongoing COP27 summit in Egypt.

1 big thing: Going electric, one depot at a time

Illustration of a navigation pin with a lightning bolt.

Illustration: Shoshana Gordon/Axios

EV Realty, based in San Francisco, raised $28 million in an all-debt deal to build charging depots for vehicle fleets, Alan writes.

Why it matters: EV Realty is aiming to become the go-to hub for companies seeking large, centralized charging depots to quickly electrify delivery vans and work trucks.

Details: NGP ETP and Segue Sustainable Infrastructure led the round. It closed Oct. 25.

  • Fifth Wall, Broadscale Group and Alpaca participated.
  • NGP gained a seat on the three-member board. EV Realty retained the other two seats.

What's happening: The idea is — you guessed it — "charging-as-a-service," CEO Patrick Sullivan tells Alan.

  • In exchange for a subscription fee or similar payment structure, a delivery company or contractor will have fully charged work trucks in the morning.
  • "This is a systems problem: You're not going to pilot your way to 30 million electric vehicles by doing one charger for two trucks at every customer's location in America," Sullivan says. "You're really going to have to think about how you adapt to the electrical grid to be the fuel source for vehicles."

Context: California, where EV Realty is based, has taken steps to require large fleets to phase in electric vehicles as soon as 2024. The rule would affect about 70% of the state's trucks.

  • "The amount of charging infrastructure that's going to be required for just that commercial segment is a 40-fold increase in commercial charging capacity in the next eight years," Greg Lyons, principal at NGP, tells Alan.

Of note: EV Realty isn't pursuing a vehicle-to-grid revenue stream, at least for now.

What's next: The company is installing public charging hubs for East Bay Community Energy early next year.

  • It aims to open its first depot for commercial customers by the end of 2024.

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