ULEMCo secures funding for hydrogen transport solutions

Hydrogen transport specialist ULEMCo has secured funding to further its first zero-emission solutions for heavy-duty vehicles.
 
The Liverpool-based company has secured a £1.8m loan from Innovate UK to accelerate development of its new range, designed for vehicles that are notoriously hard to decarbonise – including fire engines, ambulances and HGVs. The range will include a product that combines an electric motor with hydrogen combustion engines to replace the diesel engine in existing vehicles, as well as a hydrogen fuel-cell solution to extend the range of electric vehicles.
 
ULEMCo raised £5m last year in a funding round led by NPIF – Mercia Equity Finance, which is managed by Mercia Ventures as part of the first Northern Powerhouse Investment Fund (NPIF), to help it develop the technology, and since then has achieved a number of milestones. Earlier this year a hydrogen-powered baggage truck it developed was used at Exeter Airport in the first turnround of a commercial aircraft using renewable energy. It has also recently demonstrated a fully autonomous mobile hydrogen fuel tanker to deliver hydrogen to construction or other off-road sites.
 
Established in 2014, ULEMCo currently offers a ‘dual fuel solution’ that allows heavy duty diesel vehicles to replace significant volumes of fossil fuel with zero-carbon hydrogen.  It enables fleet operators to reduce carbon emissions without replacing their existing vehicles, and continue to operate in areas with poor hydrogen supply. Customers include Aberdeen City Council and Balfour Beatty.
 
In June this year, the government announced plans to tackle hydrogen supply chain challenges by investing £500m to create the UK’s first regional hydrogen transport and storage infrastructure, and signed the first round of contracts to support private investment in production facilities.   
 
Amanda Lyne, founder and Managing Director of ULEMCo, said: “At ULEMCo we are focussed on finding practical ways to help companies cut their carbon emissions. Our dual fuel solution enables them to quickly convert existing vehicles and reduce the use of fossil fuels, however our goal has always been to offer zero emissions solutions too. We know that for many applications battery technology is not only very expensive, but it cannot match the operational needs of fleets. Therefore we are excited about our new range, which will enable customers to fully decarbonise their existing vehicles at a much more affordable cost.”
 
Rob Hornby of Mercia Ventures added: “ULEMCo is one of the UK’s leading innovators in the field of hydrogen transport and has built a thriving business, even though supply problems have so far limited uptake. With the government’s investment in infrastructure expected to create renewed interest in hydrogen vehicles, ULEMCo will be well positioned to take advantage of the growing demand.”
 
The British Business Bank has now launched the £660m Northern Powerhouse Investment Fund II (NPIF II) which covers the entire North of England and provides loans from £25k to £2m and equity investment up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.
 
NPIF – Mercia Equity Finance can provide equity investments in the NPIF II area with a primary focus on the Yorkshire and Humber regions of City of Kingston upon Hull and East Riding of Yorkshire, North Yorkshire, South Yorkshire and West Yorkshire.”