Germany – Land of Electric Bus Promotion

After Hamburg's transport companies were recently granted around 160 million euros in funding, the Federal Ministry of Transport is continuing to expedite the allocation of grants for the conversion of city bus fleets in Germany – Federal Transport Minister Volker Wissing has allocated an additional 600 million euros.

With the funds from the new "Guideline for the Promotion of Alternative Drives for Buses in Passenger Transport," transport companies are to be supported in the procurement of around 1,700 emission-free buses along with the associated maintenance and charging infrastructure – the order sheet includes approximately 1,400 battery buses, 150 fuel cell buses, 50 trolley buses, and 100 gas buses.

"Especially in cities where many buses are on the roads, alternative drives can significantly help reduce CO₂ emissions, pollutant emissions, and noise – thereby increasing the quality of life. That’s why we are specifically promoting the conversion of diesel buses to alternative drives. In the future, 1,700 climate-friendly, quiet, state-of-the-art buses will be on the roads across Germany – serving as moving proof that modern mobility is a benefit for citizens, the climate, and the economy. Our goal is for 50% of city buses to use alternative, climate-friendly drives by 2030. I am pleased that transport companies are taking on this great challenge together with us," said Federal Transport Minister Volker Wissing.

The following eight transport companies and agencies received funding notices from the BMDV today (including projected vehicle numbers):

• KVG Kieler Verkehrsgesellschaft mbH: 50 battery buses
• Stadtwerke München GmbH: 71 battery buses
• Transdev GmbH Berlin: 325 battery buses, 40 fuel cell buses, 110 biomethane buses
• Bremer Straßenbahn Aktiengesellschaft: 50 battery buses
• Stadt Esslingen am Neckar: 51 battery-trolley buses
• AeroGround Flughafen München GmbH: 72 battery buses
• Berliner Verkehrsbetriebe (BVG): 350 battery buses
• Regionalverkehr Köln GmbH: 108 fuel cell buses

The recent issuance of funding notices "marked the start of processing the first call from last year," according to the BMDV. Further applications are currently being processed, and the second funding call is also planned to be published in the second quarter of 2022.

Guideline for the Promotion of Alternative Drives for Buses

Since 2021, the Federal Ministry of Digital and Transport (BMDV) has been promoting the switch from bus fleets to climate-friendly drives within the framework of the "Guideline for the Promotion of Alternative Drives in Passenger Transport." Around 1.25 billion euros are available for this purpose until 2024, with additional funds planned for 2025.

The funding program is designed to be technology-neutral to provide the appropriate technology option for each deployment context. The focus is on switching to battery-electric and fuel cell-based buses. The federal government covers up to 80% of the additional costs compared to conventional comparable vehicles – and the construction of the necessary infrastructure is also part of the funding. Feasibility studies that determine how the switch to alternative drives can be achieved at each location are also eligible for funding.

What does this mean?

Unfortunately, public transport is (almost) always and everywhere a subsidized business – but it is also a driver of new mobility – thereby leading the way in terms of the mobility transition. This is why grants are better invested here than in other questionable financial giveaways.