Clean-tech start up Sunswap has secured £17.3m to accelerate the rollout of its zero-emission transport refrigeration technology across the UK and Europe.
The £17.3m was raised through a funding round led by investment company BGF and included Shell Ventures, Dutch venture capital fund, Move Energy, and existing backers Barclays and Clean Growth Fund.
The funding will accelerate the further development and production of Sunswap’s zero-emission Transport Refrigeration Units (TRUs).
The system features solar panels on the trailer roof and a cloud-based telematics system, which enables operators to monitor and control units.
Sunswap’s technology has undergone rigorous commercial trials with a range of companies, such as Tesco and Muller, which the company said has demonstrated superior performance and lower total cost of ownership compared to traditional diesel units.
The business has a growing customer book including equipment services provider TIP Group, shipping and logistics giant DFDS, as well as a number of UK operators.
Sunswap said the funding will be used to expand production to meet growing customer interest, increase a nationwide service network, and further advance its technological development as the business looks to capitalise on significant market opportunities in the UK and Europe for cleaner, more sustainable transport solutions.
Michael Lowe, co-founder and chief executive of Sunswap said: “We are thrilled to have BGF and Shell Ventures support in our mission to decarbonise cold chain logistics.
“Their investment, alongside the continued backing of our existing investors, is a real validation of Sunswap’s journey to date.
“This funding will be instrumental in accelerating our growth and expanding our presence in the UK and European markets.
“It will enable us to ramp up production, support further customer trials, and invest in the development of our zero-emission technology.
“Together, we will work towards a cleaner, greener future for cold chain logistics, helping businesses meet their sustainability targets.”
Rowan Bird, investor at BGF, said: “As the logistics industry moves towards more sustainable practices, Sunswap’s TRU technology stands out as a leading solution for fleet operators seeking to reduce their carbon footprint and operational costs.
“BGF is excited to support Sunwap in continuing to develop its technology, expand manufacturing capabilities, and strengthen its portfolio as a leader in the field of climate tech.
“This is a groundbreaking business with significant near-term market potential, and we look forward to being part of the company’s growth journey.”
Stephen Price, Clean Growth Fund investment director, added: “We are delighted to provide further investment to Sunswap as part of this round.
“The company has made outstanding technical and commercial progress since we first invested back in March 2022 and is the leading innovator in transport refrigeration.
“With this further investment Sunswap is poised to accelerate the decarbonisation of cold chain logistics and rapidly transition the industry away from highly polluting legacy technology.”
James Ferrier, principal investments director at Barclays Sustainable Impact Capital, said:“Sunswap’s latest acceleration towards a fully electric, zero-emission alternative to diesel-powered Transport Refrigeration Units demonstrates a step forward in the logistics industry.
“As an industry that generates annual revenues of £1.3trl and contributes £185bn to the UK’s economy, it makes both financial and environmental sense that we adopt clean tech to support its growth.
“Marking Barclays’ continued support for Sunswap, we are proud to help scale technology essential to decarbonisation.”
