Green fuel expert on track to create 100 jobs after £5m funding round
Liverpool-based ULEMCo has raised more than £5m in a funding round led by Mercia Ventures, which is expected to create around 100 jobs across the UK over the next three to five years.
Mercia was investing its own funds and the first Northern Powerhouse Investment Fund (NPIF), and backed by existing investors, Equity Gap, the North West Fund and Scottish Enterprise.
ULEMCo converts heavy duty vehicles to hydrogen and the new funding enables it to expand its conversion team and develop new products in hydrogen dual fuel, fuel cell and zero-carbon emission combustion.
The company’s ‘dual fuel solution’ (H2CED) enables heavy duty vehicles to run off hydrogen but continue to use diesel where necessary.
It allows operators to switch to cleaner fuel and significantly reduce their carbon emissions without having to replace their existing fleet. The technology is suitable for different makes and types of vehicles including refuse trucks, road sweepers and other machines and equipment.
ULEMCo, which is currently celebrating its 10th anniversary, was founded by Amanda Lyne, a cleantech expert and serial entrepreneur who had previously co-founded hydrogen fuel cell specialist ACAL.
The company has seen demand from businesses and local authorities, particularly in Scotland. Aberdeen alone now has 55 hydrogen-enabled vehicles as a result of the company’s first ‘fleetwide conversion contract’ with the city council.
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, said: “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.”
Fraser Lusty, Director of Equity Gap said: “We are excited to increase our support for ULEMCo and its management team. 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.”
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.
