Octopus Group, parent firm of Octopus Energy, is lending its support to a new venture that provides green rental equipment for infrastructure projects.
InfraFleet launched last year to provide green rental and leased equipment for infrastructure projects, helping operators save money and emissions. Its focus is on delivering electric- and hydrogen-powered equipment on both a short- and long-term basis, cutting costs for customers on fuel, congestion charges and equipment replacements.
The business, founded by former infrastructure investor Chris Medley, is developing a customer base of contractors delivering essential infrastructure projects and maintenance on behalf of local councils, governmental agencies, government entities such as Network Rail, and key infrastructure providers such as fibre broadband companies.
Octopus is delivering both financial and advisory support to InfraFleet. It will provide up to £10m initially, with follow-on capital available as the business scales up, while also helping the company to grow through entrepreneurial support and advice, access to Octopus-backed infrastructure companies and office space. InfraFleet will also seek bank lenders to provide asset-backed finance.
Chris Medley of InfraFleet said: “The vast majority of construction equipment runs on diesel. The technology for the electrification of these assets is beginning to come through and customers want it. But the incumbents who are best placed to provide green assets aren’t yet incentivised to do so. Through my role as a private equity infrastructure investor, I was involved in rental businesses, and I saw that customer demand was growing for green leasing equipment.”
The company, which prides itself on not having any diesel assets, will tackle this by buying a green assets and providing them at an “affordable” price. Solutions already available on its website include a zero-emission electric cherry picker.
“We can help end-users adopt green technology sooner,” outlined Medley. “With support from Octopus, which has founded and invested in phenomenally successful businesses for more than 20 years, InfraFleet has a huge opportunity to cement itself as integral to the future of the infrastructure industry.”
Lukasz Michalak, investment director, sustainable infrastructure at Octopus, said the business proposal was an interesting one and aligned with many sectors that Octopus is active in.
“We immediately saw the potential and how the entrepreneurial ecosystem here at Octopus could support the growth of the business and realise mutual synergies in the process. It was too early stage for our infrastructure investors, so we decided to initially back InfraFleet using our own funds and incubate the company. When it’s mature enough we hope to bring the opportunity to investors who have a lower-risk appetite,” he stated.
