Berlin to Toronto: The Quantron H2 journey continues

Dear LinkedIn,

I am thrilled to share some exciting updates with you. Recently, at the GREENTECH FESTIVAL in Berlin, we achieved another significant milestone in the evolution of Quantron-as-a-Service. In collaboration with our esteemed partner, Goldstone Technologies Limited (GTL), we proudly announced the joint venture ROQIT.

But our journey doesn't stop there! I’m excited to inform you that we will be taking ROQIT to the technology conference Collision Conf in Toronto. This prestigious event provides us with a remarkable opportunity to showcase the capabilities of QaaS to the North American market.

What you will find in this edition of my newsletter:

• Greentech Festival & QaaS Platform Launch
• Quantron AG kicks off Series B Funding Round
• Zero-Emission Transport Updates
• Outlook: Collision in Toronto

GreentechFestival & QaaS Platform Launch    

The GreenTech Festival was conceived as a green technology exhibition and a platform bringing together sustainability pioneers and forward-thinkers. Over 190 exhibitors participated in this edition of the festival in Berlin in June 2023.

QUANTRON was among them, presenting our vision for the future of zero emission commercial transportation solutions. Our highlight, however, was bringing our Quantron-as-a-Service (QaaS) approach alive with the unveiling of ROQIT GmbH as the official name of our Indo-German joint venture with Goldstone Technologies Ltd.

The aim of Roqit GmbH is to develop a digital transaction platform as the future digital backbone of QaaS, in addition to AI-driven and OEM-agnostic software solutions for a fast growing zero-emission fleet management market that is projected to exceed $70 billion by 2032. This will build on five key pillars: fleet management, insurance-as-a-service, hydrogen economy, GHG accounting, and data insights.

ROQIT will have operations in Augsburg, Germany and Hyderabad, India. As the first customers, Quantron AG and ETO Motors will leverage the platform’s beta version which will already be available in 2023. It will collaborate with partners such as Roadzen and GreenAir for the pillars of insurance-as-a-service and GHG accounting.

These announcements were accompanied by the visit of Christian Lindner (GermanFederal Minister of Finance) and Nico Rosberg (former F1 champion andfounder/host of the Greentech Festival) to QUANTRON’s exhibit at the festival.

Christian Lindner highlighted the significance of sustainable innovation and showed his enthusiasm for QUANTRON's broad portfolio which covers both battery- and hydrogen-electric drives: “I am advocating to be technologically open in Germany and Europe. As you probably know, we focus on the battery electric vehicles but there are alternatives. I think there are different use cases and so we need a variety of technologies.”

Nico Rosberg sees great opportunities in QUANTRON's use of hydrogen: “We want to be technology open and therefor its very interesting for us to have such hydrogen solutions here. And we are very happy that you [QUANTRON] are launching your new initiative here, because hydrogen of course in many ways has a lot of potential for the future. It requires some more investment, but I think the potential is there.”

This was also covered extensively in the press, including leading outlets like the Financial Express, Autocarprofessional, and Hydrogen Central.

QUANTRON Kicks off Series B Funding Round

Last week, Quantron AG officially opened the doors to its Series B funding round with an outreach to a couple of selected investors.

The Series B funding round aims to raise up to €200M by the end of 2023, with already strong appetite through registration of interest by 5 investors. Investors will receive a 20% discount on the valuation by investing through a Convertible Loan Agreement (CLA) before August 2023.

Stifel Financial Corp. has been commissioned by Quantron to support and serve as the leading advisor for the Series B fundraising.

For more information, please feel free to contact Lisa Schuler at l.schuler-liepert@quantron.net or Richard Atkins at richard.atkins@stifel.com

Zero-emission transport updates   

The German government just approved a bill proposing a truck toll with a CO₂ surcharge of €200 per ton of CO₂ for heavy commercial vehicles with high emissions, starting from December 1, 2023. From July 1, 2024, all commercial vehicles weighing over 3.5 tons will be subject to the toll. However, existing and future operators of emission-free trucks and vans exempt from the toll until the end of 2025, and thereafter only pay 25 percent of the regular rate. The Federal Ministry of Transport will also provide up to €2.2 bn in funds for climate-friendly commercial vehicles and infrastructure development with an aim is to incentivize the industry to switch to climate-friendly vehicles and reduce CO₂ emissions.

As the transition gains momentum, we are also witnessing the increasing awareness to the limits and realities of electricity grids today. Electricity generated at often remote wind or sun-rich locations can’t leverage the existing grid network that was primarily designed to deliver electricity from large fossil fuel plants near major consumption centres. Building new power lines and reinforcing existing infrastructure is an enormous undertaking, necessitating substantial time and investment - as reported recently in the Financial Times. BloombergNEF estimates that the global network of cables needs to be doubled by 2050, spanning a staggering length of 152 million kilometres and requiring a $21 trillion investment. As we discussed in our whitepaper earlier this year, with greater adoption in the number of vehicles, the scales tip in favour offuel cell trucks from an infrastructure cost perspective.

Concurrently, the momentum for the hydrogen economy, and its application in zero emission transport, has continued to increase rapidly in the last weeks. Earlier this week, the European Council finally agreed on its update to the Renewable Energy Directive (RED II). This sets binding targets for EU member states to reduce emissions by increasing renewables. RED II would require 42% of hydrogen used by European industry to be renewable by 2030, ramping up to 60% by 2035. In the transport sector, the targets include a share of renewable energy within the final consumption of energy in the transport sector of at least 29% by 2030; or a greenhouse gas intensity reduction of at least 14.5 % by 2030.

Across the Atlantic, the US National Clean Hydrogen Strategy and Roadmap has also recently been launched as a comprehensive framework for accelerating the production, processing, delivery, storage, and use of clean hydrogen. It sets clear targets, such as achieving 10 million metric tons per annum (MMTPA) of hydrogen production by 2030, scaling up to 50 MMTPA by 2050. Additionally, the roadmap aims to reduce the cost of electrolyzers by 50-70% by 2030, establish regional hub projects and networks, and create over 100,000 jobs by 2030. A total of $9.5 billion will be implemented through legislations, partnerships, consortia, and grants.

Projections suggest that by 2050, hydrogen demand across various applications will exceed 500 million tonnes, accounting for 10% of the global energy mix. Roland Berger estimates the value pool of green hydrogen production to reach €500 billion by 2030, buoyed by incentives in the US, Europe, and Asia, as well as declining costs. This momentum is expected to establish hydrogen as a self-sustaining business post-2030.

QUANTRON is tracking these developments and geared to leverage the resulting opportunities to grow into the world’s leading provider of zero emission commercial transport solutions. This sets us clearly apart from traditional vehicle manufacturers, many of whom are still lagging far behind in their transition and risk losing market share to new entrants according to a recent analysis by advocacy group Transport & Environment.

Outlook: Collision in Toronto

With Collision, from June 26th to June 29 in Toronto, we are bringing ROQIT to Canada and the U.S, solidifying its position as a crucial component of QUANTRON's North American QaaS capability. I will be participating in a panel discussion with Ryan Morris (CEO Turntide Technologies ) and Alejandro de la Garzo (Staff Writer, Time) on the topic of “Sustainable infrastructure: Fact or fiction?” on June 29th, starting at 3:55 pm.

Collision is widely recognized as one of the world's largest and most influential technology conferences, attracting an exceptional gathering of innovators, industry leaders, and tech enthusiasts from around the globe. It serves as an excellent platform for us to engage with a diverse range of stakeholders, including potential customers, strategic partners, and investors. With over 40,000 attendees hailing from more than 140 countries, including over 950 investors, this event offers a remarkable opportunity to showcase the immense potential of QUANTRON and forge strategic partnerships that will accelerate our growth trajectory.

We are eager to leverage this global stage to attract investors who recognize the groundbreaking nature of our solutions and share our vision for a sustainable and efficient future. Through collaborations and alliances formed at Collision, we envision propelling QUANTRON to new heights and realizing its full potential.

Stay tuned for more updates as we embark on this exciting journey at Collision Conf . Together, let us unlock the possibilities and drive positive change in the transportation industry.

Best regards,

Michael Perschke

CEO, Quantron AG