Hydrogen fuel cell manufacturer Loop Energy is expanding into the UK this month as demand for hydrogen fuelled commercial vehicles grows.

The company is opening a facility at Grays, Essex, close to the HQ of its client Tevva Motors, which manufacturers hydrogen and electric trucks, and is currently recruiting production support, customer support and inventory staff.

The announcement comes just one month after Loop Energy signed a multi-year fuel cell supply agreement with Tevva, which includes delivery commitments in excess of US$12m (£9.8m) through 2023.

Loop Energy, which is listed on the Toronto Stock Exchange, and has raised $100m so far, is targeting the commercial vehicle sector, including buses and HGVs.

Diesel and petrol HGVs made up 18% of all road emissions in 2019, amounting to 19.5 metric tons carbon dioxide equivalent (MtCO2e), according to UK government data.

Loop Energy president and chief executive, 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 decarbonising commercial vehicles.

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“We were pleased to see the UK government’s recent commitment to the hydrogen sector, with the Business Secretary’s pledge to unlock the £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 the UK and the rest of Europe. We expect to service a truck and bus market size upwards of US$15bn over the next two to three 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 said: “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.”