ULEMCo has completed the closure of a funding round worth over £5 million, and has added to its investor base. The company has a strong track record in hydrogen commercial vehicle conversion, which creates further demand for the clean fuel in transport and construction applications. The capital raised will help accelerate ULEMCo’s development activities in hydrogen dual fuel, fuel cell and zero-carbon emission combustion.
The round was led by Mercia Ventures, which was investing from its own funds and the first Northern Powerhouse Investment Fund (NPIF), and included existing investors Equity Gap, Scottish Enterprise and the North West Fund.
The new funding will allow the company to grow more rapidly, expanding its capability and building its highly skilled team in upgrading, upcycling and future proofing essential machinery, equipment and vehicle assets in commercial applications. Demand for cost effective routes to decarbonising heavy-duty vehicles, non-road machinery and specialist services is increasing dramatically on the back of global plans for scaled production of clean hydrogen.
In recent months, ULEMCo has focussed its activity on offering commercially viable solutions that enable companies, operators and the public sector to implement the use of hydrogen fuel in their fleets. It has standardised its globally innovative dual fuel solution (H2CED®) across different makes and types of vehicles, machines and equipment, including refuse trucks, road sweepers and other specialist applications.
The funding comes at the ten-year anniversary of ULEMCo’s founding, the company having since grown through sales of its dual-fuel conversion service. The company is especially strong in Scotland, where Aberdeen alone has 55 hydrogen-enabled vehicles. ULEMCo’s first “Fleetwide Conversion Contract” with the City Council supports the development of their local hub and cluster, creating potential demand for over 50 tonnes of hydrogen per annum. These vehicles are out in the real world, on city roads, now contributing to cleaner air and net zero ambitions.
Amanda Lyne, Founder and Managing Director of ULEMCo, said: “These investments are a strong endorsement of our technology, capabilities and vision. The time is right for hydrogen to take an even more important role in the move to clean mobility and net zero.”
“We are excited to increase our support for ULEMCo and its management team”, said Fraser Lusty, Director of Equity Gap. “Hydrogen is an important part of achieving net zero, and ULEMCo is showing itself well placed to drive implementation of this clean fuel with immediate benefits.”
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.”
Debbie Sorby, Senior Manager, British Business Bank, said: “Innovative businesses like ULEMCo are a key component to achieving the UK’s net zero goals. ULEMCo is ahead of the trend, providing a solution in sustainable fuels for heavy duty vehicles. The forward-looking business answers an unmet demand for hydrogen-based fuels paving the way towards a more sustainable future. We look forward to supporting ULEMCo in its growth journey throughout Scotland and across the UK.”
The NPIF investment was from the first Northern Powerhouse Investment Fund, which has now closed. The new Northern Powerhouse Investment Fund II was launched in March 2024 and is now open for applications.
The Northern Powerhouse Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.
ULEMCo has a range of hydrogen approaches that it deploys including hydrogen dual-fuel, fuel cells and hydrogen combustion engines.
