A Cincinnati-based company that’s been building out a high-profile network of electric vehicle charging stations in the region is partnering with a leading national distributor, and the multiyear, multimillion-dollar contract could be the first of many as it looks to broaden its reach.
Electrada, one of the region’s most-watched startups, is partnering with Ferguson, one of North America’s largest distributors of plumbing and HVAC supplies, as part of Ferguson's fleet electrification pilot. The program, part of a larger corporate sustainability effort to reduce its carbon footprint, will allow the U.K.-based company to deploy medium and heavy-duty all-electric vehicles throughout California.
The initial agreement has Electrada installing its charging stations at five Ferguson depot locations in the state. Electrada will invest, build, design and operate the infrastructure, while Ferguson will pay it for its usage volumetrically.
While the financial terms of the agreement were not disclosed, Electrada CEO Kevin Kushman told me it’s a five-year, multimillion-dollar contract. Neither party has talked about future expansion publicly, but the pilot is expected to be the first wave of many, he said.
Overall, the move represents a major shift for Electrada. The startup has predominately focused its effort regionally since its founding in 2020. Its installations have included high-trafficked locations like Findlay Market, Northern Kentucky University and the Cincinnati Zoo serving retail, business and multifamily residential.
Now the business is targeting fleet and corporate customers — with a broader reach, he said.
Construction of the Ferguson depot-charging infrastructure is currently underway.
“It puts us on the map,” Kushman said. “And it isn’t just a ‘turn it on and walk away’ situation; it’s a very sticky relationship with great scalability. California is a hotbed for things like EV. We hope that same approach can be applied to other parts of the country.”
Electrada’s introduction to Ferguson came via New Jersey-based Holman, which provides fleet management and leasing services. Holman and Electrada announced their own partnership earlier this year to help North American fleet operators faster integrate EVs into their vehicle mix.
Also critical in the expansion: The startup received a recent capital infusion from famed investment group BlackRock. Electrada first disclosed the New York firm’s investment in a U.S. Securities and Exchange Commission filing last June as part of a $20 million raise.
Since that time, Electrada has quadrupled in size to 20 employees and moved into larger office space at the Strietmann Center in Over-the-Rhine, Kushman said.
He said BlackRock has invested at both the business level and with an extended project pool of capital. That means Electrada will have access to additional funds as it scales, for this project and for future deals.
BlackRock’s support also means the company doesn’t need to raise additional money. “We’re grateful for the ability to stay out of that fray,” he said.
In a release, Emily Graham, director of sustainability at Holman, said the EV segment is evolving rapidly. Electrada, as a “charging-as-a-service,” or CaaS provider, removes the capital investment component. The company's return-on-investment spans the course of the multiyear relationship.
“EVs continue to generate a significant amount of interest,” Graham said. “As we explore potential projects with our customers, (our) partnership with Electrada virtually eliminates two of the biggest roadblocks: infrastructure development and significant capital expenditures.”
Per Kushman, the new fleet partnerships will allow the company to further expand its footprint across the country. Currently the cost of electricity stacks up “very favorably” in comparison to diesel, he said.
“It’s been an interesting journey,” he said. “We’re only a little more than 2 years old, and our goal was to offer charging-as-a-service to whoever would be using it. As we’ve gotten our legs under us locally, there’s been a different directional push. We’re looking at it more broadly.”
