In a bid to champion eco-friendly transportation in Nigeria, Qore, supported by Sterling Bank, is on a mission to transform gas-powered vehicles into electric ones.
The transportation sector in Nigeria is a major contributor to greenhouse gas emissions. Qore, a renewable energy mobility firm backed by Sterling Bank, aims to curb this by converting light vehicles like motorcycles, tricycles, and minibuses into electric variants. These electric vehicles can travel up to 60 km on a single charge, equivalent to 12 trips between Maryland and General Hospital Ikeja or traversing Admiralty Road 12 times.
Akin Akingbogun, the Mobility team leader at Qore, explained the conversion process: “We simply remove the existing oil components and replace them with batteries and electric motors.” Given that motorcycles, tricycles, and minibuses are predominantly used for passenger transport and deliveries in Nigeria, Qore has also introduced a public charging station in Lagos. This station allows users to swap their drained batteries for fully charged ones and pay for the recharging service.
Qore is testing prototypes and plans to roll out 100 electric tricycles in Kano next month. However, while electric vehicles have lower maintenance costs than their gas-powered counterparts, the conversion process can be pricey. Olabanjo Alimi, Group Head for Renewable Energy and Transportation at Sterling Bank, emphasized that Qore’s strategy is to cater to groups of clients rather than individuals to achieve cost efficiency.
To address Nigeria’s unreliable electricity supply, Qore uses a combination of renewable energy and grid electricity. They’ve established agreements with electricity distribution companies to ensure a steady supply, using renewable energy as a backup.
Qore’s Business Model
The electric vehicle market in Africa is projected to be worth $21.4 billion by 2027. However, immediate progress is gradual. For Qore, it’s about the long-term vision. Alimi shared with TechCabal, “Entering the EV market now means understanding that immediate profitability isn’t guaranteed.” Qore’s revenue streams include converting Internal Combustion Engines to EVs and earnings from battery recharging services.
Qore offers financing for two-wheelers and three-wheelers for public transport and has ambitions to expand to cars and public buses. Alimi highlighted the challenges of financing larger vehicles due to the significant energy requirements.