Loop Energy plans a new facility in UK for H2 fuel-cell commercial mobility
Canada-based H2 fuel-cell developer for commercial vehicles, Loop Energy, has announced its expansion in the European region with a new manufacturing facility in the UK, to be located in Grays, Essex, towards east of London.
The announcement comes just a month after Loop Energy signed a multi-year fuel cell supply agreement with UK-based H2 commercial vehicle maker Tevva Motors, which includes delivery commitments in excess of $ 12 million through 2023. The announced facility's location is also close to Tevva Motors' base in Tilbury.
Loop Energy President and CEO Ben Nyland said, "We are excited to open a new facility in the UK, where both the private and public sector is quickly growing around decarbonizing commercial vehicles. We were pleased to see the UK government's recent commitment to the hydrogen sector, with the Business Secretary's pledge to unlock £9bn investment needed to make hydrogen a cornerstone of the UK's greener future".
"Our investment commitment for the UK market is strategic to serve both UK and the rest of Europe. We expect to service a truck and bus market size upwards of US $15 Billion over the next 2 to 3 years, and our UK facility is established as the localized support center for these vehicles", he added.
Ben Nyland further claimed that UK will grow in lock-step with the growth of his company's local OEM customers. "Our investment strategy will align with the timing and volume of our ecosystem partners as the industry ramps up supply to this market. We also believe that the UK's strong pool of manufacturing and design talent will help take Loop to the next level in its growth story".
Loop Energy has raised about $100 million CAD so far, and is targeting the commercial vehicle segment including buses and heavy goods vehicles (HGVs) across the global markets.
For instance, the company has recently entered the Australian bus market as a supplier of fuel cell modules to Aluminium Revolutionary Chassis Company (ARCC). Loop Energy claims that its order books has grown substantially with 52 purchase orders in the six months to the end of June, up from 13 over the same period last year.