The UK government has granted a £400m loan to chemical and sustainable energy tech company Johnson Matthey, with the goal of supporting the green industrial revolution ten-point plan published in 2020.
The London-headquartered multinational company specialises in the research and development of sustainable technologies, including hydrogen power, a key area of interest in the government’s green tech plans.
The £400m loan is the largest single investment for a UK company researching hydrogen-based energy and reusable technology.
The financing is being provided by HSBC, Sumitomo Mitsui Banking Corporation and Bank of America, with the government backing it via UK Export Finance.
As well as furthering research into sustainable technology, the more than 200-year-old company is expected to create hundreds of new jobs across the country with the latest cash injection.
“Investments in hydrogen technologies will blast domestic energy production higher than ever – securing the future supply of cleaner energy at home and helping us to export abroad,” said International Trade Secretary Anne-Marie Trevelyan.
“This will make for a healthier, wealthier future for the UK while protecting the planet.”
Johnson Matthey has committed to developing sustainable technologies, stating that 95% of its sales and R&D spending will contribute to sustainable projects by 2030.
The company has also agreed to reduce its own carbon emissions as part of the deal, with the progress of this monitored by a third party.
Stephen Oxley, Johnson Matthey CFO, said: “The announcement today demonstrates the strength of JM’s commitment to sustainability goals and targets announced last year.
“The loans will help support the significant investment we are making to help create a cleaner, healthier world.”
Government support is crucial for the development of energy tech. Recent data shows the difficulty many UK startups working in energy have in securing long-term late-stage funding, with investors often opting for ‘safer’ bets such as fintech.