16 November 2015
Liverpool, UK – ULEMCo, the company leading the use of ultra-low emission hydrogen fuelled vehicles in the UK, has successfully closed an investment of £400,000 from the North West Fund for Energy & Environmental, managed by 350 Investment Partners. The investment will be used to accelerate the development of the company and to provide for the building of the technical team and business development function, within the Liverpool City Region.
The North West Fund is an existing investor in ULEMCo and has taken this opportunity to increase its support for the company in its mission to provide a practical, ultra-low emission vehicle option for light commercial vehicle owners – a market that currently has very little alternative.
ULEMCo has a number of trial vehicles running in the UK, building valuable data on real-life running performance, and demonstrating the ultra-low emission potential of hydrogen fuelled vehicles for commercial use.
Over the last 18 months, ULEMCo has achieved all of the technology and commercial milestones it planned. It has demonstrated the carbon reduction capability of the technology, with trial vehicles under road conditions showing emissions of an average of 329g less CO2 per mile compared with diesel. The vehicles have also proven their ultra-low emission status by meeting global standards for air quality under UK Vehicle Type Approval (VCA) verification.
ULEMCo continues to gain new commercial customers for its converted Ford Transit vans, including new vehicles for Western Power Distribution and recently announced an order for duel-fuel hydrogen powered refuse collection vehicles to be used by Fife Council.
Adam Workman, Partner at 350 Investment Partners, said: “The timing was right for us to increase our support for ULEMCo as it continues to extend its technical capability and commercial penetration. There is significant potential for hydrogen fuelled vehicles to reduce harmful emissions and reduce costs, and we are pleased to be part of that initiative.”
“We are naturally delighted at this investment from the North West Fund, which takes us to the next level of our development”, said Amanda Lyne, CEO of ULEMCo. “Not only will it provide for our continued growth over the next phase, but it is a vote of confidence from an existing investor who knows us well.”
The funding will be used by ULEMCo to provide growth capital to open a new office in the Liverpool City region, and to help strengthen the engineering and business development capabilities of the company over the next three years. The company is hoping to create up to 10 jobs over this period.
The investment in ULEMCo Ltd. has been made by The North West Fund for Energy & Environmental, which is financed jointly by the European Investment Bank and the European Regional Development Fund, and is managed by 350 Investment Partners.
350 Investment Partners is one of Europe’s leading co-investors in clean technology companies. In addition to managing The North West Fund for Energy & Environmental, it has previously advised the Carbon Trust on its venture capital activities.
ULEMCo has also been awarded grant funded projects under the Innovate programme, details of which will be announced shortly.
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Notes to editors
ULEMCo Ltd is based in Liverpool, UK and was founded in 2014 as a spin out of Revolve Technologies, to commercialise intellectual property and capability in hydrogen combustion engine technology. The company retrofits vehicles, starting with diesel Ford Transit vans to enable them to run on commercially available hydrogen. The technology allows vehicle fleet managers to reduce their carbon dioxide emissions to ultra-low levels.
Commercial fleets across the UK will benefit from a reduced carbon foot print while still having the full range capability of standard diesel vehicles. Alongside various partners, ULEMCo already supports a fleet of 20 vehicles across a range of hydrogen hubs in the UK. The company is targeting commercial fleet retrofits to grow the market significantly over the next 18 months, and then expand into other vehicle types over the longer term. Its growth plans include creating a hydrogen re-fuelling network, to capitalise on the existing local infrastructure for this ‘green’ fuel. www.ulemco.com
About 350 Investment Partners LLP
The £20 million North West Fund for Energy & Environmental is managed by 350 Investment Partners. Established in 2006, 350 IP historically advised the Carbon Trust on its clean energy venture capital investment activities leveraging £282 million of private sector investments and successfully realising £17 million up during this time.
As a fund manager for The North West Fund, 350 IP’s role encompasses identifying appropriate investment opportunities, conducting due diligence, negotiating and structuring transactions, and monitoring and managing investments until exit.
The North West Fund
The North West Fund is a substantial investment fund established to provide debt and equity funding (from £25,000 to £2 million) to small and medium sized enterprises based in, or relocating to, the North West of England. The Fund addresses an identified gap in the lending, venture capital and private equity markets. It is one of the largest public sector funds of its kind in Europe and the largest in the UK.
The North West Fund is financed by the European Regional Development Fund (ERDF) and the European Investment Bank (EIB) under the European Commission’s Joint European Resources for Micro to Medium Enterprises Initiative – otherwise known as the JEREMIE programme.
The North West Fund is the umbrella name for the seven funds that are available to businesses in the form of debt, equity and quasi-equity. These funds are managed by individual fund managers. Each fund manager has a mandate to invest their allocation into the specific product or sector they manage, by 31st December 2015.
The fund managers are under contract with North West Business Finance Limited (NWBF), which is a private, not for profit company, established to oversee the delivery of The North West Fund.
The North West Fund has now invested over £125m in more than 375 businesses. Further funding has also been earmarked to support these businesses as they grow and many more new investments are planned throughout 2015. For further information please visit www.thenorthwestfund.co.uk
European structure, JEREMIE
The JEREMIE initiative offers EU Member States, through their national or regional Managing Authorities, the opportunity to use part of their European Union (EU) Structural Funds to finance small and medium-sized enterprises by means of equity, loans or guarantees, through a revolving umbrella fund. The initiative was developed by the European Commission and the European Investment Fund, which is part of the European Investment Bank Group.
JEREMIE provides for a range of debt and equity financial tools to obtain the most appropriate allocation of funds according to national, regional or local requirements.
ERDF in the Northwest
ERDF is making a real difference to people and businesses in the North West. The 2007-2013 ERDF programme, which is worth €755 million, has enhanced the competitiveness of the region’s economy by supporting growth in enterprise and employment.
ERDF in the North West is managed by the Department for Communities and Local Government – for further information visit https://www.gov.uk/erdf-programmes-and-resources.
The EIB is the European Union’s long-term financing institution and, provides long-term finance for capital projects promoting European economic objectives. The EIB made its first loan in the UK in 1973 and since then has lent around €75bn for investment in the UK economy. In the years from 2004 to 2009, the EIB financed investment in the UK totaling some € 23.5bn – GBP 17.5 billion.