FirstGroup and Hitachi announce joint venture

According to a statement to the press, the newly formed company will purchase up to 1,000 electric bus batteries valued at about 100 million pounds. These will be used in First Bus’ fleet of electric buses.

Both companies have invested 10 million pounds each in the joint venture. The remaining investment is funded by debt. The first 400 batteries will be installed in First Bus buses in 2024, with the remaining 600 to be installed over the following 24 months, or by 2026.

“The pioneering alliance with Hitachi is a major strategic partnership for the Group as we progress towards our ambitious 2035 decarbonisation target for our bus fleet,” says FirstGroup CEO Graham Sutherland. “It will allow us to continue the electrification of our fleet and depots with increased efficiency and greater visibility of our financial commitment, and unlike other possible arrangements, we will retain much of the residual value in the batteries as they are taken off our buses.”

Alistair Dormer, Executive Vice President and Executive Officer, General Manager of Green Energy & Mobility Strategy Planning Division at Hitachi, adds: “Hitachi is committed to becoming a climate change innovator. We continuously strive for growth through collaboration and co-creation with our partners and customers, and this specific partnership enables us to use our innovative technologies and global expertise to help decarbonise fleets efficiently, discover untapped revenue streams, and maximise the residual value of assets.”

As part of the deal, Hitachi will provide charging and management services for the 1,000 electric buses powered by the new batteries. There is also a commitment for a further 500 batteries and services for electric buses after 2026

The strategic partnership builds on an existing agreement between the two companies. Hitachi already supplies electric trains to First Group’s First Rail division.

hitachi.com (PDF), firstgroupplc.com