VCIB and 7Gen Partner to Lead the Charge in Electric Vehicle Fleet Adoption
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TORONTO, July 28 2022 (GLOBE NEWSWIRE) — Traditional territory of several Indigenous nations, including the Haudenosaunee and the Treaty Territory of the Credit Mississaugas — Vancity Community Investment Bank (VCIB), Canada’s only values-focused bank and a subsidiary of Vancity Credit Union, today announced a partnership with Seven Generation Capital (7Gen), Canada’s first company helping operators of fleets to deploy medium and heavy electric vehicles fleets with an electric vehicle rental model and chargers. VCIB provided 7Gen with a $3.2 million loan to support the purchase and lease of ten electric trucks and fast chargers needed to accelerate the delivery of electric vehicle fleets in Canada.
The $3.2 million loan from VCIB cleared the way for 7Gen to lease the equipment to GoBolt, a technology provider of sustainable fulfillment and last-mile logistics for retailers and e-commerce brands. It is estimated that this fleet of electric vehicles will reduce CO2 emissions by 4,140 tonnes over the trucks’ seven-year lease period. This represents an annual reduction of 491 tons compared to the use of internal combustion engine trucks.
The partnership between VCIB and 7Gen presents a new way of operating that facilitates the transition of the electric vehicle fleet – a business model made possible thanks to project developers such as 7Gen who offer an end-to-end fleet electrification package . 7Gen’s innovative service offering helps businesses understand different cost structures and select the trucks that are best for them, as well as navigate and choose the best EV infrastructure providers for their needs. There are similar companies in the United States that are leveraging “as a service” business models to help small and medium-sized logistics operators overcome transportation electrification challenges, but 7Gen is the first company to launch this. type of service in Canada, supported by funding from the VCIB.
The road transportation sector accounts for approximately 21% of Canada’s total greenhouse gas emissions, and reducing these emissions is essential to achieving the federal government’s ambitious climate change commitments. Although the availability of zero-emission fleet options is increasing and there are a few examples in operation, the deployment of all-electric commercial delivery vehicles in Canada is still in its infancy.
“The opportunity for a cleaner future is enormous, as we are one of the greatest economic pivots in history,” said David Berliner, head of structuring clean energy deals at VCIB. “Innovative financing for the electric vehicle industry is the missing piece to scale the net-zero transition. Our partnership with 7Gen aligns with our net-zero climate commitment and delivers cost savings while advancing climate change systems. cleaner transportation in Canada,” continued David.
“7Gen appreciates the commitment of Vancity Community Investment Bank to help us secure debt financing to enable our last mile delivery customer to accelerate their deployment of zero-emission vehicles,” said Frans Tjallingii, CEO of 7Gen. . “We will need more financing institutions to value carbon reductions in their capital allocations to achieve climate-positive societal goals. Additionally, we are seeing more and more shippers include zero-emission transportation requirements in their tenders. These are great drivers to motivate carriers to engage in ZEV deployments,” continued Frans.
“GoBolt is excited to accelerate the transition to zero-emission vehicles for last mile logistics and delivery and working with trusted partners such as 7Gen and VCIB allows us to move quickly and confidently to achieve our goals,” said Chris Taylor, Vice President, Strategy. Initiatives at GoBolt.
VCIB’s financing for 7Gen builds on the bank’s track record of financing one-of-a-kind business models and clean energy projects, including:
- VCIB’s clean energy team supported Six Nations of the Grand River Development Corporation’s clean energy portfolio with a $32.5 million loan to refinance the Niagara Region Wind Farm, the second largest wind farm in Ontario. Profits from the project will flow back into the Six Nations community and will be used to stimulate economic opportunity, purchase critical infrastructure and fund support services such as mental health and suicide prevention programs.
- VCIB provided a $3.81 million loan for a residential geothermal project that provides heating and cooling to 246 residential properties in British Columbia.
- In 2021, VCIB financed the largest wastewater energy transfer project in the world, operated by Noventa Energy Partners. The $38 million project, also partially funded by the Government of Canada, will produce enough thermal energy to meet 90% of Toronto Western Hospital’s heating and cooling needs. This is one of the first projects of this scale to use raw municipal wastewater from a sewer.
- On June 16, 2022, VCIB formed an Impact Partnership with Accelerate – Canada’s zero-emission vehicle (ZEV) supply chain alliance. The partnership will support Accelerate’s efforts to advance ZEV adoption and develop a strong ZEV offering.
About Vancity Community Investment Bank (VCIB) VCIB is an Ontario-based Schedule I federally chartered bank and a subsidiary of Vancity Credit Union. As Canada’s only values-based bank, VCIB offers specialized financing solutions for high-impact projects like social purpose real estate and clean energy projects. For motivated businesses and organizations, VCIB offers tailored banking, investment and finance solutions to increase their growth and impact. VCIB is a Certified B Corporation and a member of the Global Alliance for Banking on Values. For more information, visit vcib.ca, tweet us at @BankVancity and join us on LinkedIn. About 7Gen 7Gen is an electric vehicle (EV) leasing and charging infrastructure company, focused on working with medium and heavy vehicle fleets. 7Gen aims to facilitate the integration of electric vehicles as a clear alternative to current internal combustion engine equivalents. It provides turnkey support, financing and software for executing EV fleet electrification-as-a-service for fleet managers, marine terminals and airports looking to join the EV revolution. To learn more, visit 7gen.com.
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Source: Vancity Community Investment Bank