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3SI Investment Fund to establish strategic partnership for zero-emission fleets in CEE

The Three Seas Initiative Investment Fund (3SIIF) and the French investment company NEoT Capital (NEoT) have established a strategic partnership to accelerate the transition to zero-emission fleets in the region, the 3SIIF announced on Wednesday (1 February).

Through the strategic partnership, NEoT Green Mobility (NGM), a financing platform for zero-emission mobility managed by NEoT and the Three Seas Initiative Investment Fund will seek to deploy capital to boost the transition to zero-emission mobility in Central and Eastern Europe (CEE).

The partnership will initially look to invest in zero-emission buses and associated infrastructure across the region, with the expectation of expanding into other fleet sectors such as municipal vehicles and delivery vehicles.

“Cities are increasingly requiring solutions for a clean, sustainable future, with zero-emission mobility playing an essential role,” said Philippe Ringenbach, CEO of NEoT. “The partnership with 3SIIF reinforces our commitment to develop sustainable public transportation systems and other key mobility segments leveraging our expertise in zero-emission mobility.”

Since entering the market in 2017, NGM has established itself as a leading financier of zero-emission vehicles, charging infrastructure and static batteries in Europe, according to a press release from 3SIIF.

3SIIF is a dedicated commercial fund targeting infrastructure investments in the CEE region. The Fund invests in energy, transport and digital infrastructure in EU CEE member states that border the Baltic, Adriatic and Black Seas where the demand for long-term commercial investment into national infrastructure is among the highest in the EU. Amber Infrastructure, as 3SIIF’s investment adviser, has an “established” portfolio in developing and investing in energy storage assets and zero-emission vehicles.

“This strategic partnership provides 3SIIF with a strong entry point into the promising zero-emission mobility sector. The cooperation with NEoT, a true market leader in the clean-energy transition, represents a compelling proposition to support 3SIIF’s sustainability objectives as vehicle electrification is critical to reducing air pollution caused by emissions and meeting decarbonisation goals,” said Christian Roy, Investment Director at Amber Infrastructure.

Unpacking the new strategic partnership

The partnership will deliver projects across the CEE region to help Member States achieve the objectives associated with the EU’s Clean Vehicle Directive, according to 3SIIF’s press release. Zero-emission buses will form the initial focus of the partnership, however, as more heavy-duty vehicles become available to the market, NEoT and 3SIIF will also look to support large fleet operators in the region in their decarbonisation process.

It will support bus operators in CEE in their zero-emission mobility transition by offering flexible and tailored solutions. As part of this, “mobility-as-a-service” solutions will provide a complete financing and asset management package (covering buses, batteries, telematics and charging infrastructure) through a more traditional bus leasing solution for operators who have their own charging infrastructure capabilities, making it simpler to accelerate the energy transition of the operators and the local authorities.

In addition, the partnership will seek to provide long-term funding solutions to bus operators, thus providing them with “cost certainty for the full life of the vehicles while also providing contractual flexibility to allow for technology upgrades during the life of the contract,” the press release added.

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