Nuvve Holding Corp. (Nuvve) is a green energy technology company.
The company has developed a proprietary vehicle-to-grid (‘V2G’) technology, including the company’s Grid Integrated Vehicle (‘GIVe’) cloud-based software platform, that enables the company to link multiple electric vehicle (‘EV’) batteries into a virtual power plant to provide bi-directional energy to the electrical grid in a qualified and secure manner.
Combining the company’s V2G technology and an ecosystem of electrification...
Nuvve Holding Corp. (Nuvve) is a green energy technology company.
The company has developed a proprietary vehicle-to-grid (‘V2G’) technology, including the company’s Grid Integrated Vehicle (‘GIVe’) cloud-based software platform, that enables the company to link multiple electric vehicle (‘EV’) batteries into a virtual power plant to provide bi-directional energy to the electrical grid in a qualified and secure manner.
Combining the company’s V2G technology and an ecosystem of electrification partners, the company dynamically manages power among EV batteries and the grid to deliver new value to EV owners, accelerate the adoption of EVs, and support the world’s transition to clean energy. With products designed to transform EVs into mobile energy storage assets and networking battery capacity to support shifting energy needs, the company is working toward making the grid more resilient, enhancing sustainable transportation, and supporting energy equity in an electrified world. The company has successfully deployed V2G projects on five continents and the company offers electrification solutions for fleets of all types.
Technology
The company’s platform dynamically manages power to and from EVs and the grid at scale. The company’s intelligent vehicle-to-grid technology allows EV owners to efficiently meet the energy demands of individual vehicles and entire fleets. With the company’s V2G technology, the grid becomes more resilient through the benefits of greater networked battery capacity.
The company’s GIVe software platform enables the company to aggregate multiple EV batteries into a virtual power plant (‘VPP’) to provide bidirectional services to the electrical grid in a qualified and secure manner. VPPs can generate revenue by selling excess power to utility companies, utilizing the stored power to perform grid services, or reduce building energy peak consumption. With the company’s technology, the company is capable of providing many levels of vehicle-grid integration (‘VGI’) and V2G services such as time of use optimization (‘TOU’), demand response, demand charge management and wholesale energy market participation, thereby providing revenues from grid services as well as utility bill savings behind the meter.
The company’s longest running commercial operation is in Denmark, where the company has provided V2G services for more than five years with daily bidding on energy markets. Specifically, this operation aggregates a coalition of EV batteries to provide a primary frequency containment reserve (‘FCR’) service to the local transmission system operator. The frequency of the current transmitted on an electrical grid is affected by the demand placed on the grid. By acting as a reserve to store or release energy into the grid in order to offset variations in demand, the FCR service provided by the company’s GIVe platform assists the local system operator in the critical task of frequency regulation.
Over the seven-plus years of this deployment, the company has accumulated many hours of valuable learning on fleet operation and energy market behavior. This Denmark-based fleet is driven primarily during the day and is parked at night and on weekends, allowing it on average about 17 hours of available market participation per day.
The V2G services revenue gives the company’s customers a lower total cost of EVs ownership through benefits such as reduced charger costs, low or free energy costs to drive, fleet management tools, and yearly maintenance. This Denmark deployment showcases the company’s ability to adapt the company’s V2G software to match requirements for market participation and interconnection to the grid — vehicles in this commercial V2G operation are each connected to 10kW bidirectional DC chargers that are controlled by the company’s V2G GIVe platform. As each vehicle is plugged in, the company’s software automatically takes control of each vehicle’s charging and discharging. The company aggregates multiple EVs into a VPP. The total available capacity from a coalition of aggregated EVs is bid onto the frequency-controlled reserve market. It is the design of the company’s V2G platform that enables the company to aggregate EVs into a VPP to provide services to the grid bidirectionally. This design incorporates (1) aggregation capabilities for available vehicles, charging stations and stationary batteries; (2) the ability to receive signals from and thereby know the needs of the grid at generation, transmission, distribution and behind-the-meter regions; and (3) real-time optimization that matches available coalition capacity onto grid needs on a second-by-second basis, all while ensuring the desired EV battery charge level at drive time.
The company’s GIVe platform also provides electric vehicle charging load management services allowing customers to reduce energy consumption during peak demand periods, simultaneously reducing the burden on the grid while optimizing EV charging. The company can perform charge management services at the individual vehicle level and across an entire fleet of EVs. The GIVE platform constantly communicates with the electricity infrastructure, charge points, and charging EVs, creating a balanced and optimized eco system.
Electric vehicles are inherently unreliable grid resources because their primary transportation function can cause them to be plugged in or unplugged at any time with varying states of charge. The company’s platform transforms these unreliable resources into reliable, dispatchable and monetizable assets; this helps stabilize the grid, enables increased renewables penetration, reduces the total cost of EV ownership and encourages EV adoption. From the user perspective, the V2G operation is seamless as the company’s V2G platform reduces the cost of ownership and ensures EVs are sufficiently charged to meet their primary transportation functions. Vehicle operators can use the company’s fleet management app and set driving needs for any given day to fulfill their driving duties.
Strategy
The company’s strategy incorporates a diversified set of segments, geographies and partners, including the North America school bus market, stationary storage, enhancing the company’s offering with artificial intelligence (AI). The company operates its platform across light duty fleets, heavy duty fleets, automotive original equipment manufacturers (‘OEMs’), charge point operators, and strategic partnerships located in Europe, Asia (including Japan) and North America.
Capturing opportunities in the North America school bus market. Through initiatives such as the company’s partnership with Blue Bird, the company is well-positioned to capitalize on this push toward electrification. Nuvve’s K-12 business, the company’s business unit focused on school buses, is continuously accelerating and the company expects will provide more than 80% of the company’s revenue in 2024, and soon will yield 500 school buses connected to the company’s platform. With third-party forecasts calling for the further acceleration of electric school bus deployments in 2024 compared with 2023, and assuming the company maintains its existing market share of charging station sales, the company sees a path forward to potentially tripling its charging station unit sales and doubling hardware revenues in 2024. The company’s value proposition is now rooted on vehicle readiness, energy management, and battery life extension. The company is fortifying its position as a leading service provider in the space. The company has demonstrated that the company know how to support its customers in this segment, and as the company launches new services in Texas, which has the largest school bus fleet in the United States, the company is confident that the company will maintain its leadership position.
Applying the company’s technology to the stationary storage sector. The company’s core technology transforms EVs (which are inherently difficult grid assets to manage because they can be plugged or unplugged at any time) into reliable, dispatchable, and monetizable assets that can perform complex and demanding grid services. These capabilities also allow the company to manage stationary storage. With the company’s advanced platform, the company can extract more value from these stationary batteries than any other player in the space. Such batteries are included in the company’s deployments with Circle K, as well as at the University of California, San Diego, and the University of Delaware. More and more, developers and battery manufacturers are coming to the company to manage battery deployments already underway. This allows the company to accelerate the growth of Megawatts Under Management (‘MWUM’) and flex the company’s grid service muscles with multiple megawatts already in the pipeline, mostly focused on local energy management combined with high value grid services. Deploying stationary storage either alone or in combination with electric vehicles is well-aligned with the company’s strategy.
Enhancing the company’s offerings with AI. The company is providing best-in-class forecasting capabilities for CPOs and Utilities through Astrea AI’s offerings. The fundamental predictive analytics work the company has done through its partnership with 2021.ai has supported the development of advanced features that allow the company to predict with a high level of confidence when an EV will be connected to a charging station and the amount of kWh it will need to onboard during the session. This allows the company to offer energy services to CPOs and provide grid usage forecast to utilities. The technology to predict where EV charging bottlenecks might happen is very valuable for utilities. The ability to reduce the peak demand by adjusting charging time without impacting end users will support an equitable cost of energy as the company move through the EV adoption curve.
Light duty fleet customers are typically organizations that operate vehicle fleets for delivery and logistics, as shared transit for sales, service and other functions requiring a motorpool and for ridesharing services. These customers choose to electrify their fleets for economic reasons, as the comparative total cost of ownership favors electrification. The company’s GIVe software platform can help them lower operating costs and achieve sustainability goals. The company offers networked charging stations, infrastructure, software, professional services, support, monitoring and parts and labor warranties required to run electric vehicle fleets, as well as low or free energy costs. The light duty fleet segment is accessed via direct sales force and world-wide channel partners.
Heavy duty fleet customers are typically organizations that operate vehicle fleets in the school bus, shuttle bus, delivery truck, refuse truck, and transit bus segments. These customers choose to electrify their fleets for economic reasons, as the comparative total cost of ownership favors electrification. The company’s GIVe software platform can help them lower operating costs and achieve sustainability goals. The company offers networked charging stations, infrastructure, software, professional services, support, monitoring and parts and labor warranties required to run electric vehicle fleets, as well as low or free energy costs. The heavy duty fleet segment is accessed via direct sales force and world-wide channel partners.
Automotive OEM customers are typically organizations that develop and manufacture electric vehicles targeted for sale to their customers. Automotive OEM customers recognize that the company’s GIVe software platform can help their customers lower operating costs and achieve sustainability goals, thereby helping to increase electric vehicle sales. The company integrates its technology into the automotive OEM’s EV platforms in order to make their vehicles compatible with the GIVe software platform. The automotive OEM segment is accessed via world-wide channel partners.
Charge point operator customers are typically organizations that own, operate and provide EV charging equipment and networked EV charging services. Charge point operator customers recognize that the company’s GIVe software platform can help their customers lower operating costs and achieve sustainability goals, thereby helping to increase the relative attractiveness of their charging network within this highly competitive segment. The company integrates its technology into charge point operator platforms in order to make their charging station network compatible with the GIVe software platform. The charge point operator segment is accessed via world-wide channel partners.
Strategic partnerships are typically joint ventures formed with strategic partners to help commercialize the company’s technology and services within a given territory. Strategic partnerships are an important way to accelerate the adoption of the company’s GIVe software platform world-wide. One such strategic partnership is Dreev, a business venture formed in 2019 between the company (who provided the company’s technology and know-how) and the company’s strategic partner Electricite de France (‘EDF’) (who provided capital and a subsidiary partner ecosystem) to address the territory within France, the United Kingdom, Belgium, Italy, and Germany. The company agreed to assign to Dreev its rights to the V2G technology in these territories. The company presently holds a 13% interest in Dreev. The parties have certain put and call option rights under the agreements for the business venture, including a call option for each party upon a change in control of the other party. While the company anticipates that it will maintain or increase the company’s stake in the business venture, there can be no assurance that the company will be able to do so.
The company views the North American school bus segment to be one of the company’s highest priorities world-wide. The company anticipates the electrification of school buses to experience significant growth in the next two to five years, as there are over 600,000 school buses on the road today in the United States and Canada. Approximately 95% of them are diesel with an average age of over 11 years. Leading school bus OEMs are thereby ramping up their electric bus production capacity in response to an increasing interest from school districts and fleet operators across the United States and Canada. The electric school bus segment thereby represents a key growth opportunity for the company to sell V2G capable charging stations and establish long-term recurring revenue streams from grid services.
Following announcements during 2020 with leading OEMs in the North American electric school bus segment, the company formed Levo Mobility LLC (‘Levo’), a Delaware limited liability company, with Stonepeak Rocket Holdings LP (‘Stonepeak’), a Delaware limited partnership, and Evolve Transition Infrastructure LP (‘Evolve’), a Delaware limited partnership, to further develop the company’s offerings to bring turnkey V2G solutions with finance packages to customers, including equipment financing, V2G services, infrastructure and maintenance operations. Levo is the company’s consolidated subsidiary.
The company also operates a small number of company-owned charging stations serving as demonstration projects funded by government grants. In previous years, a substantial portion of the company’s revenues have been derived from these grant funded projects, and the company expects growth in company-owned stations and the related government grant funding to continue. The company anticipates that such projects will constitute a declining percentage of the company’s business as its commercial operations expand.
The company expects to generate revenue primarily from the provision of services to the grid via its GIVe software platform and sales of V2G-enabled charging stations. In the case of light duty fleet and heavy duty fleet customers, the company also may receive a mobility fee, which is a recurring fixed payment made by fleet customers per fleet vehicle. In addition, the company may generate non-recurring engineering services revenue derived from the integration of the company’s technology with automotive OEMs and charge point operators. In the case of recurring grid services revenue generated via automotive OEM and charge point operator customer integrations, the company may share the recurring grid services revenue with the customer. Presently, grid services revenue comprises a small portion of the company’s revenue, but the company expect this portion to grow.
By employing a capital-light business model, the company is able to strategically allocate its capital into research and development, marketing and sales and public policy. The company continues to invest in expanding its GIVe software platform and V2G service capabilities and in the other areas described below, as well as in the service and maintenance of the company-owned stations and those stations with service and maintenance plans.
The development and advancement of the company’s GIVe software platform’s capabilities is critical to fulfilling the company’s product vision for a platform that is adaptable, adjustable and scalable. This includes the continual build-out AI based forecasting capabilities.
It is important to continue developing the company’s global sales channels and grow its direct sales capabilities in order to support customer acquisition. This includes expanding the company’s network of global partners who sell, install and maintain the company’s solutions. The company has and will continue to focus on category awareness and consistent branding.
The company continues to invest in its long-running efforts in policy and utility relationships. The company advocates for policies that advance electric mobility and ensure a healthy industry with a focus on reduction in the barriers to bi-directional/V2G-capable infrastructure deployment, including interconnection processes and advocating for EVs and charging stations to be considered as distributed energy resources able to participate in wholesale energy markets.
The company’s growth strategies for scaling its V2G technology and services are to accelerate new services and product offerings; invest in marketing and sales; and pursue strategic acquisitions.
Government Regulation
All charging station products used or sold by the company complies with the NEMA (National Electrical Manufacturers Association) standards that are applicable to such products.
Certain components of products used or sold by the company is excluded from the RCRA’s (Resource Conservation and Recovery Act’s) hazardous waste regulations, provided certain requirements are met.
Additionally, in the European Union (‘EU’), the company is subject to the Waste Electrical and Electronic Equipment (‘WEEE’) Directive.
The company is subject to the Occupational Safety and Health Act of 1970, as amended (‘OSHA’). The company complies with OSHA regulations.
Intellectual Property
As of December 31, 2023, the company had six U.S. patents issued, and various corresponding foreign issued applications from five distinct patent families. Additionally, the company has various pending U.S. patent applications and Patent Cooperation Treaty applications. These patents relate to various bi-directional (V2G) and uni-directional (V1G) EV charging functionalities, aggregation and grid services.
The company owns these patents, including four U.S. patents, that were acquired from the University of Delaware pursuant to an intellectual property acquisition agreement, dated November 7, 2017.
As of December 31, 2023, the average remaining life of the company’s U.S. patents was approximately 8.8 years.
Sales
The company has an in-house field sales force that maintain business relationships with customers and develops new sales opportunities through lead generation and marketing. The company can also sell EV charging hardware and V2G software services through reseller partners, which then sell these products and services to their customers.
Marketing is performed by the company’s in-house staff. To promote and sell the company’s services to customers, the company also utilizes marketing and communication channels, including press releases, email marketing, website (www.nuvve.com), and social media.
The company anticipates continuing to expand revenues by selling EV charging equipment to current as well as new customers, which include school bus operators, school districts, universities, stadiums, infrastructure investors via special purpose vehicles, municipal locations, and other fleet operators. In addition to transportation hubs and workplace locations, the company anticipates expanding sales channels to wholesale distributors, utilities, and automotive OEMs.
The company’s revenues have and will be primarily derived from the sale of V2G-capable charging stations and recurring revenues from grid services provided by the GIVe software platform. Historically, a significant portion of the company’s revenue has been derived from government grant funded projects to demonstrate the company’s V2G technology and services.
Customers
For the year ended December 31, 2023, the company had customers whose revenue individually represented 10% or more of the company’s total revenue. For the year ended December 31, 2023, three customers accounted for 30.3% of the company’s total revenue.
During the year ended December 31, 2023, the company’s top five customers accounted for approximately 38.9% of the company’s total revenue.
Suppliers
The company’s principal supplier of bidirectional DC Chargers is Rhombus Energy Solutions.
Competition
The company primarily competes with less advanced charge point operator EV charge management platforms providing fleet charging services without bi-directional capabilities, such as ChargePoint, Mobility House, EnelX, Shell-NewMotion, Blink and Ovo Energy. There are also additional entrants into the connected EV charging station equipment market, such as General Electric, SemaCharge, EVConnect, BP Pulse, Fermata, and Greenlots.
Research and Development
The company’s research and development expenses were $8.8 million during the year ended December 31, 2023.
History
Nuvve Holding Corp. was founded in 2010.
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