Hydrogen Hope Hits a Snag: EG Group Withdraws Support for HVS
London, Friday, 7 March 2025.
EG Group’s decision to end financial support leaves Scottish hydrogen truck maker HVS teetering on the edge. With urgent investor search, can HVS pivot and survive the turmoil?
Financial Fallout
I’ve been tracking the seismic shifts in the hydrogen vehicle sector, and today’s development is significant. EG Group has fully written off its US$33 million investment in HVS, where it held a 31% stake [1]. The investment journey began with a £5m equity investment in 2021, followed by a substantial £25m convertible loan in 2022 [1]. What particularly catches my attention is how this represents yet another tremor in the hydrogen vehicle market.
Industry Context
The hydrogen vehicle sector has been experiencing what I’d call a domino effect of setbacks. Several major players including Nikolai, Proterra, Renault’s Hyvia, and Hyzon have already filed for Chapter 11 or faced liquidation [1]. As someone who’s witnessed the evolution of alternative fuel technologies, I find it particularly telling that HVS’s new CEO Abdul Waheed points to previous leadership decisions as the root cause of their current crisis [1].
Survival Strategy
I’m observing a fascinating pivot in HVS’s business strategy. Rather than continuing with truck manufacturing - now acknowledged as ‘financially untenable and unsustainable’ by the company - they’re seeking to transition to a licensing model [1]. The immediate challenge? They need £700,000 to fend off legal action, and their ambitious plans include seeking £9 million for developing an AI-powered cruise-control system for non-hydrogen trucks [1].
Race Against Time
The clock is ticking loudly for HVS. The company’s Chief Scientific Officer David Telford has made a bold move with an open letter to potential investors, particularly targeting Barclays Climate Ventures. They’ve calculated that £1 million could buy crucial time with creditors [1]. While Barclays manages a £500m climate technology fund, they’ve maintained silence on potential investment [1]. The company warns it’s just ‘weeks away from winding up’ if new funding doesn’t materialize [2].