The company, known for its expertise in hydrogen commercial vehicle conversion, drives demand for clean fuel in transport and construction applications. The capital raised will accelerate ULEMCo’s development in hydrogen dual fuel, fuel cell, and zero-carbon emission combustion.

Mercia Ventures led the round, investing from its own funds and the Northern Powerhouse Investment Fund (NPIF), joined by existing investors Equity Gap, Scottish Enterprise, and the North West Fund.

The new funding will enable ULEMCo to grow rapidly, expanding its capability and building a highly skilled team for upgrading, upcycling, and future-proofing machinery, equipment, and vehicle assets in commercial applications. The demand for cost-effective routes to decarbonising heavy-duty vehicles, non-road machinery, and specialist services is increasing due to global plans for scaled production of clean hydrogen.

In recent months, ULEMCo focused on offering commercially viable solutions for companies, operators, and the public sector to use hydrogen fuel in their fleets. It standardised its innovative dual fuel solution (H2CED) across various vehicles, machines, and equipment, including refuse trucks, road sweepers, and other specialist applications.

The funding coincides with ULEMCo’s ten-year anniversary. The company grew through sales of its dual-fuel conversion service, with a strong presence in Scotland. Aberdeen alone has 55 hydrogen-enabled vehicles. ULEMCo’s first “Fleetwide Conversion Contract” with the City Council supports the development of a local hub, creating potential demand for over 50 tonnes of hydrogen per annum. These vehicles are now on city roads, contributing to cleaner air and net zero ambitions.

Amanda Lyne, Founder and Managing Director of ULEMCo, said: “These investments are a strong endorsement of our technology, capabilities and vision. The time is right for hydrogen to take an even more important role in the move to clean mobility and net zero.”

“We are excited to increase our support for ULEMCo and its management team”, said Fraser Lusty, Director of Equity Gap. “Hydrogen is an important part of achieving net zero, and ULEMCo is showing itself well placed to drive implementation of this clean fuel with immediate benefits.”

Debbie Sorby, Senior Manager, British Business Bank, said: “Innovative businesses like ULEMCo are a key component to achieving the UK’s net zero goals. ULEMCo is ahead of the trend, providing a solution in sustainable fuels for heavy duty vehicles. The forward-looking business answers an unmet demand for hydrogen-based fuels paving the way towards a more sustainable future. We look forward to supporting ULEMCo in its growth journey throughout Scotland and across the UK.”

The NPIF investment was from the first Northern Powerhouse Investment Fund, which has now closed. The new Northern Powerhouse Investment Fund II was launched in March 2024 and is now open for applications. 

The Northern Powerhouse Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank. 

ULEMCo has a range of hydrogen approaches that it deploys including hydrogen dual-fuel, fuel cells and hydrogen combustion engines.