Gore’s firm raises $55M for clean bus

Environmentalist Al Gore’s investment management firm has led a $55 million fundraising round for clean-bus maker Proterra Inc.

The Silicon Valley maker of electric transit buses said it raised $55 million as it prepares for a possible initial public offering later this year. Generation Investment Management LLP — whose chairman is the former vice president — led the round. It was joined by BMW i Ventures, the corporate venture capital team founded by BMW Group in 2011.

“This round was unplanned. It came together because two specific investors wanted to own a part of what we’re doing,” Proterra Chief Executive Officer Ryan Popple said. “Everywhere you look there’s a crappy old diesel bus that needs to be replaced with an electric bus.”

Public buses are a key part of the U.S.’s transit infrastructure, and the fact that they serve routine, fixed routes makes them ideal for electrification. As the nation’s coal-fired power plants close, transportation is likely to eclipse electricity production as the country’s largest source of greenhouse gas emissions. Even as President Donald Trump said the U.S. will pull out of the Paris agreement, cities and municipalities are increasingly leading efforts to combat climate change.

“Proterra is incredibly well positioned to help accelerate the growth of sustainable cities and continue our transition to a clean energy economy,” Gore said in a statement announcing the close.