In the context of the energy transition, ElectroFleet emerges as a key player, redefining how businesses approach decarbonisation and the electrification of their operations.
The company, led by Mark Hellmann Regouby, establishes a business model that not only addresses its clients’ energy challenges but also positions the firm as a benchmark in the sector.
In an interview with Mobility Portal Europe, the CEO shares the fundamental pillars that have propelled it to the forefront of corporate sustainability in Germany.
How did it come about? “The firm was created to tackle the business challenges associated with the decision to decarbonise,” explains Hellmann Regouby.
Since its foundation in 2021, it has adopted an innovative approach by offering an energy-as-a-service model, handling investments in infrastructure such as solar and wind power, and batteries.
This approach allows its clients to benefit from long-term price stability without needing to make a significant initial investment.
In this framework, ElectroFleet combines the installation of renewable energy systems with fixed price offers per kilowatt hour over a period of up to 20 years.
This is crucial for companies seeking to mitigate the financial risk associated with transitioning to clean energy sources.
“The reason we call ourselves ElectroFleet is because we believe that mobility will have a major transformative effect on the climate,” highlights the CEO.
In a context where transport accounts for 27 per cent of global CO2 emissions, the firm has identified one of the biggest obstacles to the mass adoption of electric vehicles (EVs): the uncertainty of energy prices.
“If you don’t know how much it will cost to charge your truck, it’s very difficult to justify switching to electric rather than continuing with diesel,” he explains.
He emphasises: “What the 20-year fixed price achieves is removing all the guesswork and risk when deciding to switch to zero and low emissions.”
This eliminates uncertainty and facilitates long-term planning.
ElectroFleet’s model is based on the premise that the total cost of ownership (TCO) of EVs can be competitive with traditional combustion engine vehicles.
“It can now be argued that, with a fixed energy cost and a known truck capacity price, it can be seen that electric is on par with or cheaper than diesel over a period of five, seven, or ten years,” he comments.
This strategy allows it to demonstrate to its clients that transitioning to a zero and low emissions fleet is not only environmentally responsible but also financially viable.
And it already has business cases where the electric option has a lower TCO.
How does ElectroFleet achieve this?
By maintaining contact with numerous logistics companies regarding vans, trucks, and trailers, modelling their demand, risk exposure, and prices, and helping them manage these challenges.
Thus, ElectroFleet acts as an advisory partner, assisting its clients in understanding and navigating the complex energy landscape.
“We are learning a lot about how to build and operate in this market,” the CEO asserts.
Despite Germany’s reputation for having substantial bureaucracy concerning grid access, the founder says they have been “pleasantly surprised” by their ability to find collaboration with local suppliers.
Not only that, but the firm also stands out for its capacity to finance the installation of energy infrastructure, becoming a strategic partner for companies looking to decarbonise without compromising their capital.
How? By providing funding to install solar energy on roofs, placing a one-megawatt or larger battery on the property, and allocating part of its wind energy portfolio to cover winter demand.
“As a result, we cover 100 per cent of their annual demand,” he details.
ElectroFleet’s vision is ambitious
With the aim of “taking on the responsibility of solving problems that individual companies cannot resolve on their own,” the firm is laying the groundwork to eventually expand beyond Germany.
What is their strategy?
“We are raising debt and equity for our next growth phase,” Hellmann Regouby states.
This approach enables it to secure significant deals, such as the recent disclosure of investing 60 million euros in renewable energy infrastructure for its first client, a local car dealership group.
Looking ahead, ElectroFleet already has a roadmap.
“We expect to make an announcement next week that will capture the attention of major logistics companies,” he anticipates.
This is set to further consolidate its market position and attract new clients seeking effective solutions for decarbonising their operations.
