Nov 17 Reuters British transport operator FirstGroup said on Friday it will form a joint venture with Japan39;s Hitachi for leasing up to 1,000 electric bus batteries for about 100 million pounds 123.9 million as part of its fleet expansion plan.

As part of the agreement, NextGen AssetCo, a 5050 joint venture between FirstGroup and Hitachi ZeroCarbon, will purchase the batteries, which will then be leased to First Bus over an eightyear period. The lease can be extended by two years.

The Aberdeenheadquartered FirstGroup said the partnership is expected to contribute about 3 million pounds per annum to the group adjusted earnings by fiscal year 2026 before any potential operational benefits.

FirstGroup expects about 20 million pounds of savings in the 2024 financial year39;s capital expenditure, along with future savings of about 40 million pounds to the 2027 fiscal.

1 0.8071 pounds

Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Mrigank Dhaniwala

Source Reuters