Hydrogen transport firm ULEMCo raises £5m to boost growth plans

A Liverpool firm that converts commercial vehicles to run on hydrogen fuel has raised more than £5m in a funding round.

ULEMCo secured the backing from Mercia Ventures, the first Northern Powerhouse Investment Fund (NPIF), Equity Gap, the North West Fund and Scottish Enterprise. The company said the backing will allow it to expand its conversion team and create around 100 new jobs over the next few years.

ULEMCo’s dual fuel solution enables heavy duty vehicles to run off hydrogen but continue to use diesel where necessary. It allows companies to switch to cleaner fuel and significantly reduce their carbon emissions without having to replace their existing fleets.

Read more: new Northern Powerhouse fund receives significant interest

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Founder and managing director Amanda Lyne said: “These investments are a strong endorsement of our technology, capabilities and our vision. The time is right for hydrogen to take an even more important role in the move to clean mobility and net zero.”

Rob Hornby of Mercia Ventures added: “Almost all heavy duty vehicles and machines are powered by diesel, but fleet operators are under pressure to reduce carbon. However there are limited options – electric vehicles do not work for heavy duty use and biofuel solutions have not yet proven to be scalable. Ulemco offers a practical and effective alternative.”

The NPIF investment came from the first fund, which has now closed. A new Northern Powerhouse Investment Fund II launched in March and is now open for applications.