Manchester-based electric vehicle charging network Be.EV has secured an investment of up to £110m from Octopus Energy Generation that will allow it to add 1,000 charging points across the UK and "kickstart a national infrastructure effort".
This is Octopus's first investment in electric vehicle (EV) charging infrastructure and the energy group says it wants to address the north-south divide in charge points to help the UK get rid of "petrol guzzling" cars.
There are currently some 456,000 EVs on UK roads. That number is already set to grow, but Octopus and Be.EV hope that expanding the UK's public charging network will further encourage that growth.
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The deal is designed to grow Be.EV’s 150-strong public charge point network, with Be.EV planning to add 1,000 further charge points across the North of England and beyond by 2024.
Octopus - which already supplied Be.EV's chargers with "100% green electricity" and has opened a Manchester office - says existing UK charge point infrastructure is heavily skewed towards London. It says this latest investment through its Sky fund will help address that imbalance quickly and make people more confident about choosing electric vehicles.
Matt Setchell, co-head of Octopus Energy Generation’s fund management team, said: "Our first foray into funding EV charging infrastructure is a significant milestone. We’re accelerating the green energy transition, with more deals coming up to turbocharge it.
"As a nation, we need to rapidly build more EV charge points to meet the growing number of drivers going electric. Easy and fair access to chargers will help phase out petrol-guzzling cars once and for all."
Asif Ghafoor, CEO and co-founder of Be.EV: “Everybody, not just the wealthy, must be able to make the switch to electric cars but currently people who live outside London or in less affluent areas are underserved by public EV charging. If you live in a flat or terrace, you can’t charge at home. This investment addresses that imbalance and helps kickstart a national infrastructure effort that, for once, doesn’t start in London.
“The backing from Octopus is transformational for us. We have sites lined up and underway that will form dense clusters of chargers that give people the confidence to go electric. We’re also building infrastructure that communities can be proud of, reinventing charging locations as green neighbourhood hubs and developing iconic designs. Octopus’ support means we can take this unique approach to other parts of the country, addressing the imbalance in charging provision across north and south, urban and rural communities.”
Henri Murison, Chief Executive of the Northern Powerhouse Partnership, added: “This investment from Octopus Energy Generation and Be.EV in electric vehicle infrastructure is a huge boost for the green industrial revolution and will help us reach our net zero ambitions. This couldn’t come soon enough.
"Access to electric vehicle charging points is lower in the north than any other British region. Combine this with our inadequate rail and bus networks and it’s easy to see why so many Northerners have to rely on petrol and diesel cars to get around."
HSBC UK provided banking support on the deal. Jason Gledhill, Global Relationship Director at HSBC UK, said: "This investment is an exciting prospect for the North of England, with the business expanding crucial charging infrastructure that will facilitate a significant shift to zero emission vehicles and, in turn, support the growth of regional economies. It is fantastic to play our part in this project and we look forward to seeing the positive impacts to come."
EY’s Corporate Finance team acted as lead financial advisor to Be.EV. Louise Shaw, partner, energy & infrastructure corporate finance, said: “EY were delighted to act as lead financial advisor to Be.EV, running a fundraising process which secured significant investment from Octopus Energy Generation.
“The rapid pace of EV adoption presents a phenomenal need for investment in public charging and investors are responding, with EV charging fast maturing as an investment class. It was fantastic to engage with funders to showcase Be.EV’s passion to deliver an accessible EV charging network, working with the communities they operate in across the North of England and beyond. Octopus will be an excellent partner for Be.EV given their steadfast commitment to the energy transition.
“This engagement builds upon EY’s experience in the e-mobility and wider energy transition sectors and is a great example of our commitment to supporting clients in the sustainability agenda.”
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