Ulemco is to collaborate with Spanish hydrogen producer H2B2 to accelerate the commercialisation of hydrogen-fuelled vehicles, both in Spain and the UK.

The companies have signed a Memorandum of Understanding that sees them partnering to make hydrogen as a fuel more economically viable through scaled production.

Liverpool-based Ulemco will continue to develop and commercialise the technology for converting commercial fleets to run on dual fuel (hydrogen/diesel), and is working with several fleet operators to demonstrate the practicality of hydrogen as a low-carbon fuel.

This work will be complemented by H2B2, which is focused on the economic green production of hydrogen and the integration of large-scale (1MW plus) hydrogen electrolysers in industrial applications, mobility and energy storage solutions.

Ulemco’s technology, deployed in HGV and heavy-duty engines, will provide H2B2 and end customers with a market for high volumes of hydrogen. This larger scale of hydrogen production is intended to make the fuel a more cost-attractive option for fleet operators.

Both Spain and the UK are looking to develop the business case for hydrogen as a cleaner alternative to diesel to help tackle poor air quality in major cities.

The UK this week proposed tougher city regulations for diesel vehicles across the country, with London consulting on the acceleration of plans for an Ultra Low Emission Zone by 2019, while Spain has announced its intention to ban diesel and older vehicles from Madrid and Barcelona.

“We are seeing a renewed wave of optimism and investment in the Spanish market,” said Ulemco CEO Amanda Lyne. “Now and post-Brexit, we want to be able to address the Spanish market with an affordable alternative to diesel fuel as demand for greener alternatives grows.”

Javier Brey, CEO of H2B2, added: ““Ulemco is making great progress in deploying hydrogen dual-fuel vehicles in the UK. We see enormous opportunity for the technology in this market, as well as to achieve even greater penetration in the Spanish speaking markets.”

Ulemco is also leading a collaborative project to demonstrate the emissions reductions and practical benefits to operators of larger fleet vehicles running on hydrogen dual-fuel as part of the DfT's £20m Low Emission Freight and Logistics Trial.