Scottish hydrogen truck start-up HVS next to risk going under

Hydrogen Vehicle Systems (HVS), a Scottish start-up founded in 2017 to develop a hydrogen-electric heavy truck, is changing course to avoid bankruptcy. The company faces over €10 million in debt and will now focus on retrofit conversions and selling its technology to cut costs.

HVS was founded in Glasgow in 2017 by Abdul Waheed with the goal of designing a new hydrogen-electric heavy truck from the ground up to meet the UK’s goal of a zero-emission new truck fleet by 2040. The company garnered some attention and awards, which was enough to secure over 75 million British pounds (90 million euros) in investments and subsidies.

Big plans, but not enough money

The company got as far as building an HGV (heavy goods vehicle) technology demonstrator and an engineering prototype in 2023, with plans to build a hydrogen racecar in 2024. However, the challenges in the dwindling hydrogen market proved too strong for a company this size, especially with the high costs associated with developing a new vehicle from scratch.

Abdul Waheed has retaken the reins and is changing course to save his company. HVS no longer has the ambition to build its own vehicles but will focus on retrofitting existing diesel-powered models with hydrogen drivetrains. It will also sell licenses for its patented technologies to other companies.

“It’s the previous management’s fault.”

According to Waheed, the company’s troubles came from the previous management ignoring the advice from hydrogen investment experts at banking company Barclays. They were warned that developing hydrogen trucks would lead to failure. Now, by cutting costs and tapping into new revenue sources, Waheed hopes to repay HVS’s debts of 8.4 million pounds (around 10 million euros), of which 1.4 million pounds (1.7 million euros) comes from creditors and suppliers.

Hydrogen is still in the hole

It is the latest chapter in the history of hydrogen vehicle companies facing bankruptcy, with Hyzon preparing to close the curtain, Quantron entering insolvency late last year, and Renault’s hydrogen company Hyvia also remaining under administration in the search for investors.

Nikola, once one of the most promising zero-emission truck companies, is reportedly also considering Chapter 11 bankruptcy to reorganize itself. This follows a run of misleading promotion videos, CEOs leaving the company one after the other, and big-name partners cutting ties.