Sunswap, a UK-based clean-tech startup dedicated to revolutionizing cold chain logistics, has successfully raised over €20 million in a funding round led by BGF. This significant investment will accelerate the deployment of Sunswap’s zero-emission transport refrigeration technology across the UK and Europe, marking a major step forward in the decarbonisation of the logistics industry.
Sunswap has developed a pioneering combined solar and battery technology that is installed on the trailer units of articulated lorries, which transport chilled consumer goods across the European road network. This innovative solution offers a low-carbon alternative to traditional diesel-powered refrigeration units, thereby addressing the urgent need for sustainable practices in the logistics sector.
The raised amount was secured from a consortium of investors, including BGF, Shell Ventures, Dutch venture capital fund Move Energy, and existing backers Barclays and the Clean Growth Fund. This capital injection will be instrumental in advancing the development and production of Sunswap’s zero-emission Transport Refrigeration Units (TRUs).
At the heart of Sunswap’s offering is the “Endurance” TRU, a fully electric solution that eliminates tailpipe carbon emissions while providing a cost-effective alternative to diesel units. Endurance combines advanced battery technology, solar power, and rapid charging capabilities, enabling fleet operators to transition smoothly to zero-emission refrigeration without compromising performance.
The Endurance units are equipped with solar panels on the trailer roof and a cloud-based telematics system, which allows operators to monitor and control the units in real time. This technology not only ensures high performance but also delivers significant operational savings, making it an attractive option for fleet operators.
Sunswap’s technology has already proven its value in commercial trials with industry giants such as Tesco and Müller, where it demonstrated superior performance and a lower total cost of ownership compared to traditional diesel units. The company’s growing customer base includes notable names such as equipment services provider TIP Group and shipping and logistics giant DFDS.
The newly secured funding will be used to scale up production to meet increasing customer demand, expand Sunswap’s nationwide service network, and further advance technological development. With this investment, Sunswap is well-positioned to capitalize on the significant market opportunities in the UK and Europe for cleaner, more sustainable transport solutions.
Michael Lowe, co-founder and CEO of Sunswap, expressed his enthusiasm for the future: “We are thrilled to have BGF and Shell Ventures’ support in our mission to decarbonise cold chain logistics. Their investment, along with the continued backing of our existing investors, is a real validation of Sunswap’s journey to date. This funding will be instrumental in accelerating our growth and expanding our presence in the UK and European markets. It will enable us to ramp up production, support further customer trials, and invest in the development of our zero-emission technology. Together, we will work towards a cleaner, greener future for cold chain logistics, helping businesses meet their sustainability targets.”
Rowan Bird, Investor at BGF, emphasized the importance of Sunswap’s technology in the evolving logistics industry: “As the logistics industry moves towards more sustainable practices, Sunswap’s TRU technology stands out as a leading solution for fleet operators seeking to reduce their carbon footprint and operational costs. BGF is excited to support Sunswap in continuing to develop its technology, expand manufacturing capabilities, and strengthen its portfolio as a leader in the field of climate tech. This is a groundbreaking business with significant near-term market potential, and we look forward to being part of the company’s growth journey.”
Stephen Price, Investment Director at Clean Growth Fund, highlighted the technical and commercial progress Sunswap has made since its initial investment in March 2022: “The Company has made outstanding technical and commercial progress since we first invested. Sunswap is poised to accelerate the decarbonisation of cold chain logistics and rapidly transition the industry away from highly polluting legacy technology.”
James Ferrier, Director of Principal Investments at Barclays Sustainable Impact Capital, added: “Sunswap’s latest acceleration towards a fully electric, zero-emission alternative to diesel-powered Transport Refrigeration Units demonstrates a step forward in the logistics industry. As an industry that generates annual revenues of £1.3 trillion and contributes £185 billion to the UK’s economy, it makes both financial and environmental sense to adopt clean tech to support its growth. Marking Barclays’ continued support for Sunswap, we are proud to help scale technology essential to decarbonisation.”
With this significant investment, Sunswap aims to lead the charge in transforming the logistics industry, providing a cleaner, greener solution for cold chain logistics that aligns with global sustainability goals.
Read the orginal article: https://www.eu-startups.com/2024/08/london-based-sunswap-secures-over-e20-million-aiming-to-decarbonise-cold-chain-logistics/
