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BGF leads £17.3m investment in Sunswap to accelerate decarbonisation in cold chain logistics

August 26, 2024

Sunswap, a pioneering UK clean-tech startup focused on decarbonising cold chain logistics, has secured £17.3 million in a funding round led by investment company BGF.

The investment will accelerate the deployment of Sunswap’s innovative zero-emission transport refrigeration technology across the UK and Europe, marking a significant step forward in the effort to reduce carbon emissions in the logistics industry.

Sunswap’s cutting-edge “Endurance” Transport Refrigeration Unit (TRU) is a fully electric solution designed to replace traditional diesel-powered units, offering a cleaner, more sustainable alternative for the transportation of chilled goods. The Endurance TRU combines advanced battery technology, solar power, and rapid charging capabilities, allowing fleet operators to transition to zero-emission refrigeration without sacrificing performance or cost-effectiveness.

The £17.3 million investment includes contributions from Shell Ventures, Dutch venture capital firm Move Energy, and existing backers Barclays and the Clean Growth Fund. This funding will support the further development and production of Sunswap’s TRUs, which have already demonstrated superior performance and a lower total cost of ownership during commercial trials with major industry players like Tesco and Müller.

Sunswap’s technology is distinguished by its integration of solar panels on trailer roofs and a cloud-based telematics system, enabling operators to monitor and control refrigeration units remotely. This not only enhances performance but also delivers significant operational savings for logistics companies.

The company’s growing customer base includes prominent names such as equipment services provider TIP Group, shipping and logistics giant DFDS, and leading UK fleet operators. With this new investment, Sunswap plans to expand production to meet increasing customer demand, broaden its nationwide service network, and continue advancing its technological innovations.

Michael Lowe, co-founder and CEO of Sunswap, expressed his excitement about the partnership with BGF and other investors: “We are thrilled to have BGF and Shell Ventures support in our mission to decarbonise cold chain logistics. This funding will be instrumental in accelerating our growth and expanding our presence in the UK and European markets. Together, we will work towards a cleaner, greener future for cold chain logistics, helping businesses meet their sustainability targets.”

BGF investor Rowan Bird highlighted the significance of Sunswap’s technology: “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. We are excited to support Sunswap in continuing to develop its technology and expand its manufacturing capabilities.”

Stephen Price, Investment Director at the Clean Growth Fund, added: “With this further investment, 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, also emphasized the importance of Sunswap’s advancements: “Sunswap’s latest acceleration towards a fully electric, zero-emission alternative to diesel-powered TRUs represents a major step forward for the logistics industry. We are proud to help scale this essential clean tech solution.”

As Sunswap continues to drive innovation in cold chain logistics, this latest investment round will play a crucial role in supporting the company’s ambitious plans to transform the industry and contribute to a more sustainable future.