Element 2, the company developing a network of hydrogen refuelling stations in the UK, has partnered with fuel card provider Radius and its UK Fuels network. The collaboration will make it possible for more than 100,000 commercial fleet customers to access a supply of fuel cell grade hydrogen across the UK and make payments with their existing UK Fuels cards.
Element 2 recently entered into a deal with UK-listed cash shell Pineapple Power [LON: PNPL] for a reverse takeover that will allow Element 2 to rapidly expand its network of refuelling stations. The acquisition was announced at a critical time, with the UK government increasing its focus on decarbonisation and clean energy. In the UK, heavy duty road transport will have a critical role to play in national decarbonisation objectives.
Hydrogen production is a national priority
The UK hydrogen supply and production network is currently in its early stage, but the government’s 2021 Hydrogen Strategy has made the production of this energy source a priority. Hydrogen can be produced using wind, solar or biomass energy sources and as such fits into the UK’s net zero transition plans as a good alternative to fossil fuels.
The war in Ukraine further compounded the appeal of hydrogen as it highlighted the need for the UK to have access to “home grown” fuels, independent of outside suppliers. The government is currently funding a wide range of projects not only producing hydrogen but also building a distribution and supply chain.
- Invinity launches next-gen battery pack
- Nano One receives C$18m from Québec Government
- eVISO SpA: One of the best small-cap bets in Europe?
Element 2 is one of the key components of this development as the private-equity backed firm is building a large network of fuelling stations, starting with Scotland. Led by two experts, a former European Space Agency engineer and fuel cells and hydrogen expert, Element 2 is aiming to cover the whole of the UK with its network by 2027. Of that, Scotland will have 250 of its own refuelling stations in place over the next few years. The company will offer a combination of mobile and permanent hydrogen refuelling solutions.
Hydrogen needs to be compressed and liquified for storage and then expanded back into gas when being used. Because of its volume it may not be ideally suited for passenger cars. However, it works well for vehicles over 3.5 tonnes such as haulage trucks, buses, or coaches.
What role will Radius be playing?
Here is where card provider Radius comes into play. Radius is an expert in providing businesses with fuel cards which allow cashless purchases of fuel at discounted prices. It also has established relationships with large and SME businesses. Instead of paying with cash or credit and debit cards, employees of such businesses present their cards to the cashiers. The company is billed directly.
As the collaboration between the two companies gets underway more than 100,000 commercial fleet operators will have access to fuel cell grade hydrogen and Radius customers will be able to make payments using their existing UK Fuels card.
“This new relationship with Radius and the UK Fuels network will unlock existing fuel sites and will be a catalyst for Element 2 to build the UK’s hydrogen network faster. We target local fuel cell grade green hydrogen made from wind, waste, biomass and water treatment sources and supply all hydrogen vehicle types – trucks, vans, buses, refuse vehicles and cars,” said Dr Andrew Hagan, Chief Development Officer at Element 2.
Jonathan Haseler, Managing Director (UK, Ireland & SEA), Radius, added: “We know our customers are reviewing their fleets in order to meet green transport targets and we need to support this transition to decarbonise our roads.”
Hydrogen will play a major role in mitigating electricity grid constraints and complement the charging infrastructure in the UK.
