ITM Power (LON:ITM), which produces hydrogen fuel for vehicles, has increased its portfolio of customers - striking a deal with Arcola Energy, which supports fleet operators.
ITM will supply hydrogen at £10/kg - the lowest priced hydrogen in the UK.
It follows Arcola's deal with Symbio FCell to provide an integrated package of zero emission commercial vehicles, on-site fuel and after-sales support for UK commercial fleet operators.
Carbon emissions from hydrogen-fuelled vans are much lower than traditional diesel vehicles and the UK government wants 65 refuelling stations in and around London and the south east by 2020 to help ease air pollution.
ITM plans to open four new refuelling stations along the M25 this year supported by the UK government, European Union and major car manufacturers.
The Renault Kangoo ZE-H2 electric van with fuel cell range extender from Symbio FCell is now in production and offers a range of over 200 miles, more than double the range of the electric-only van.
Arcola provides sales, deployment support, maintenance and engineering support for these vans in the UK.
ITM's chief executive Dr Graham Cooley told investors: "This agreement with Arcola, the exclusive importer of the Symbio FCell range-extended Renault Kangoo ZE van, is another step in building a portfolio of fuel customers.
"Following on from the contracts with Toyota and Commercial Group, we are very pleased to be working with Arcola and to be supporting their fleet customers at our hydrogen refuelling stations."
Dr Ben Todd, chief executive and founder of Arcola, added: "We are delighted that we can now offer our commercial fleet operators a contract for hydrogen fuel.
"The price of £10 per kg for green hydrogen proves out many of our customers' business models and is the lowest priced hydrogen in the UK.
"Key to commercial deployment of hydrogen for fleet operators is a secure contracted price for the fuel and so we are delighted to have signed this agreement which can be passed through to our customers."
It's been a busy week for ITM. On Tuesday, it inked a fuel supply contract with Commercial Group, one of the UK’s pioneers in the commercial use of hydrogen-fuelled vehicles - also for hydrogen at £10/kg from its network of refuelling stations.