Hydrogen fuel specialist ITM Power (LON:ITM) has signed a fuel supply contract with Commercial Group, one of the UK’s pioneers in the commercial use of hydrogen-fuelled vehicles.
The contract will see ITM Power supply Commercial’s fleet with hydrogen at £10/kg from its network of refuelling stations.
Graham Cooley, ITM Power’s chief executive, said: "We are building a portfolio of fuel customers and following the first contract - to supply Toyota - we are very pleased to be working with Commercial.”
Set up in 1991, Commercial Group is a £42mln delivery business that operates in London and the south east and along the M4 corridor.
Helped by funding from Innovate UK, the government-fund innovation agency, it has operated a fleet of hydrogen hybrid delivery vans since 2013.
Simone Hindmarch-Bye, Commercial's co-founder and sales director, said that through the contract with ITM it would be able to extend the range of low-carbon hydrogen delivery services to more customers nationwide.
“The use of hydrogen continues to demonstrate Commercial's commitment to reducing the carbon footprint of our operations and exploring new and innovative technologies to reduce the UK's dependency on fossil fuels."
Carbon emissions from hydrogen-fuelled vans are much lower than traditional comparable diesel vehicles and the government wants 65 refuelling stations in and around London and the south east by 2020 to help ease air pollution in the capital.
ITM plans to open four new refuelling stations along the M25 this year supported by the UK government, European Union and major car manufacturers.