Electric motorcycle maker Zero Motorcycles is planning an expansion into Santa Cruz, Calif., where it will erect facilities to research, develop and sell its next generation of products.

The Scotts Valley, Calif.-based OEM plans to use $800,000 in grants and loans from the California Energy Commission (CEC) to build powertrain research, manufacturing and retail facilities in Santa Cruz, according to John Borofka, manager of strategy at Zero.

However, funds from CEC are being distributed under a new program to foster environmentally friendly vehicles, and there is no guarantee Zero will be named a recipient. Applications for the program are due May 20, and Zero should know by July whether it would receive the money.

To bolster its application, Zero has lined up the equivalent of $800,000 in matching funds for the endeavor; the Santa Cruz city council has pledged the equivalent of $400,000 (in loans, staff and technical assistance), Zero will put up $350,000 of its own capital, and the remaining matching funds will be realized in rent incentives and in-kind support provided by the future facilities’ landowner.

Source: Unleashed Motorsports