Loop Energy announces UK expansion
Loop Energy, designer, and manufacturer of hydrogen fuel cells for commercial mobility, has announced it will expand into the UK. Loop Energy's newest facility will be based in Grays, Essex, east of the centre of London and situated next to a group of manufacturers helping decarbonise road transport, including current customer Tevva Motors, the hydrogen and electric truck OEM, based in Tilbury. The company said the move is in reaction to growing customer demand for Loop Energy's fuel cells in continental Europe and the UK, where diesel and petrol vehicles will start to be banned from 2030.
Ben Nyland, president and chief executive officer (CEO) at Loop Energy, said: "We are excited to open a new facility in the UK, where both the private and public sector is quickly growing around decarbonising 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 GBP9bn 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 £15b over the next two to three years, and our UK facility is established as the localised support centre for these vehicles.
"Our investments to the UK will grow in lockstep 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." Loop Energy said it is targeting the commercial vehicle sector, including buses and heavy goods vehicles (HGVs).
The announcement comes after Loop Energy signed a multi-year fuel cell supply agreement with UK-based Tevva, which includes delivery commitments in excess of £12m through 2023. Lord Callanan, UK business minister, said: "Hydrogen is likely to be fundamental to cutting emissions across some of our largest forms of commercial transport - from buses to HGVs. 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."