Loop Energy president and CEO Ben Nyland

Canadian company Loop Energy, a designer and manufacturer of hydrogen fuel cells for commercial transport, will extend its presence in Europe later this month by expanding into the UK.

Loop Energy’s newest facility will be based in Grays, Essex, next to a growing group of manufacturers helping decarbonise road transport, including current customer Tevva Motors, the hydrogen and electric truck OEM based in Tilbury.

Loop Energy said the move was in reaction to growing customer demand for its fuel cells in continental Europe and the UK.

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

Loop Energy president and CEO 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.

“We were pleased to see the UK government’s recent commitment to the hydrogen sector, with the business secretary’s pledge to unlock £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 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 local support centre for these vehicles. Our investments in 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.”