Hydrogen vehicle firm Riversimple has launched a £150m funding raising as it seeks to ramp up to mass production with initial plans for two factories each employing up to 220 staff.
The Abergavenny-based firm has appointed corporate advisory firm Gambit to drive the funding raising as it looks to move to manufacturing 25,000 green vehicles a year based on its hydrogen fuel cell powered Rasa car which it begun developing 20 years ago.
It is aiming for a two-seater Rasa car factory becoming operational in 2023, with a light commercial van production line coming on stream in 2024. It then aims to have a larger family car in production in 2026 and in the following year a string of five factories producing collectively 25,000 vehicles per annum, as well as having a research and development facility.
By 2032 Riversimple projects having a fleet of 180,000 vehicles leased to customers, which will only emit water.
It recently secured equity backing from the Ƶ Government’s Future Fund, having also secured the required match funding from the private sector.
The first tranche(£5m) from a successful funding would be used complete the production of 20 beta test vehicles, in addition to further engineering recruitment, general business costs and initial set-up costs.
The remainder of the funding will provide the capital needed to develop the vehicles and facilities for mass production, With the production and cost of hydrogen reducing Riversimple, along with the electric battery vehicle sector, believes it is well place to benefit as the Ƶ first moves to banning diesel vehicles while encouraging more consumers to switch from petrol.
The business model is based on leasing vehicles for between one to five years to customers. For a single monthly fee plus a mileage rate, customers receive the vehicle, maintenance, insurance, tyres and fuel.
Based on a lifespan of 20 years, each vehicle would generate revenues of £74,000, but with provided services, like maintenance and free fuel, the profit margin would be significantly less.
Each vehicle will have enough power to travel 300 miles with a refilling time of just three minutes.
Gambit is exploring a number of funding routes including backing from the Ƶ’s Government multi-billion pound automotive transformation fund, institutional investors and corporates,including potentially oil and gas firms which could also be suppliers of hydrogen.
Riversimple is looking at potential factory sites in Mid and South Wales and is in conversations with both Ƶ and Welsh governments about its manufacturing plans.
Founder of Riversimple Hugo Spowers said: “Hydrogen’s potential to contribute to a clean energy future is widely recognised around the world, by governments and the private sector. With the ban on combustion engine vehicles looming, now is the time to focus on clean and efficient alternatives.
" We’re focused on delivering convenient and commercially viable hydrogen fuel cell vehicles (FCEVs), as well as seeing a new era of automotive manufacturing in the heart of Wales.”
“FCEVs are the only zero carbon solution that offers customers the convenience that they have come to expect, with just three minutes to refuel and a decent range. They represent a once-in-a lifetime opportunity for the Ƶ to take a leading role in the future of the auto sector, harnessing the unrivalled skill base that we have in automotive technology. “
“In our view, electricity and hydrogen are complementary energy vectors and the availability of both Fuel cell electric vehicles and battery electric vehicles (BEVs) will decarbonise the transport sector much faster.”
Public interest in hydrogen fuel cell cars as an alternative to battery electric cars continues to grow – over 4,000 people have already expressed an interest in being a future customer of Riversimple.
Frank Holmes, partner at Cardiff Bay based Gambit Corporate Finance, said: “With desirable vehicles and an innovative business model, we see Riversimple as a catalyst for the hydrogen economy, driving the net zero agenda in Wales where the fuel cell was invented, and beyond.”
Riversimple is also involved in the Milford Haven Energy Kingdom project to build a hydrogen cluster in Pembrokeshire.
