InfraFleet, a startup providing eco-friendly equipment for infrastructure projects, has been backed by Octopus Group with a £10m investment.
InfraFleet aims to provide emission-free equipment for use in construction to work towards a net-zero economy. Its equipment is powered electrically as well as through hydrogen, reducing both the emissions and expense of diesel fuel-powered infrastructure equipment.
Launched only in 2022, InfraFleet has caught the eye of major UK investor Octopus, which has agreed to incubate the company with direct support in addition to the cash injection.
Octopus said this support will include providing InfraFleet access to infrastructure-oriented companies within its investment portfolio.
“The vast majority of construction equipment runs on diesel. The technology for the electrification of these assets is beginning to come through and customers want it,” said InfraFleet founder, Chris Medley.
“But the incumbents who are best placed to provide green assets aren’t yet incentivised to do so.”
Medley said that because InfraFleet is a “new entrant” that has “no diesel assets”, and it is in a strong position to acquire and distribute “green assets”.
Lukasz Michalak, investment director of sustainable infrastructure at Octopus, said: “We immediately saw the potential and how the entrepreneurial ecosystem here at Octopus could support the growth of the business and realise mutual synergies in the process.”
Michalak noted that the company is “too early-stage for our infrastructure investors”, which is why Octopus decided to “initially back InfraFleet using our own funds and incubate the company. When it’s mature enough we hope to bring the opportunity to investors who have a lower risk appetite”.