Loop Energy’s UK facility will be based in Grays, Essex, just east of the centre of London and next to a growing group of manufacturers helping decarbonize road transport, including current customer Tevva Motors.
The Toronto Stock Exchange listed company, which has raised $100 million CAD so far, has already started to recruit for the roles at the new facility.
The company adds that its move is a reaction to growing customer demand for fuel cells in continental Europe and the UK, where the sale of some diesel and petrol vehicles will be banned from 2030.
Loop Energy believes it is well positioned to provide its technology and expertise to help OEMs and others to decarbonize the transportation industry.
The company recently signed a multi-year fuel cell supply agreement with UK-based Tevva, which includes delivery commitments in excess of US$12 million through 2023.
Commenting on the expansion, Loop Energy President & 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. Our investments to the UK will grow in lock-step with the growth of our local OEM customers, and 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.”
UK Business Minister Lord Callanan added:
“Hydrogen is likely to be fundamental to cutting emissions across some of our largest forms of commercial transport – from buses to heavy goods vehicles. As the world shifts to cleaner transport it is critical we embed a UK supply chain that can capture the economic opportunities of hydrogen technology. Loop Energy’s expansion in Essex is fantastic news for the region, bringing green jobs and growth, while adding to the UK’s reputation as a leader in hydrogen and fuel cell research.”