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ALTUM to fund for transitioning to greener vehicles to Latvia’s companies

Latvia’s state-owned development finance institution ALTUM announced the financing for transitioning to greener vehicles to companies. The funding is available to switch to more eco-friendly vehicle fleets, including those types that using Compressed natural gas (CNG) as fuel.

The loan offered by ALTUM can be up to 2,8 million euros, with own participation starting from 10 per cent. In the case of sustainable transport, it means a 7 year period of time and might be applied to mobility, electric cars and biogas transport.

“We see that transitioning to greener transport and reducing the use of fossil fuels can be advantageous for business, which is why I hope that in the future, we will have reasons to be proud of the funding provided to buy not only electric but also CNG vehicles,” said Reinis Bērziņš, chairman of the board of ALTUM. “Right now, we are developing one project, as part of which an agricultural company intends to replace vehicles using traditional fuels with those running on CNG, with the purpose of reducing fuel consumption and costs, and to potentially start using biogas further on.”

The Chairman also added that the programme has reduced guarantee requirements and the strictest condition expected from interested companies is having a clear vision of their business model. This funding may be available for the purchase of vehicles and for installing local CNG fueling stations on company premises.

The creation of eco-friendly vehicle fleets is also supported by the Ministry of Transport, which has already awarded funding for the procurement of CNG buses in Daugavpils.

Latvia believes natural gas and biomethane to play a crucial role in freight, passenger and in municipal transport services. The country also wishes for fiscal and financial support and revising the policies of the European Union, which are – next to the infrastructure – essentials for promoting the use of these alternative fuels.

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