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

Sunswap, a pioneering UK cleantech startup focused on decarbonising cold chain logistics, has secured £17.3 million in a funding round led by investment firm 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 efforts to reduce carbon emissions in the logistics sector.

Sunswap’s advanced “Endurance” Transport Refrigeration Unit (TRU) is an all-electric solution designed to replace traditional diesel-powered units and provide a cleaner, more sustainable alternative to the transportation of refrigerated goods. The Endurance TRU combines advanced battery technology, solar energy and fast charging capabilities, allowing fleet operators to transition to zero-emission cooling 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 lower total cost of ownership in commercial trials with major industry players such as Tesco and Müller.

Sunswap’s technology is distinguished by the integration of solar panels on trailer roofs and a cloud-based telematics system, allowing operators to monitor and control refrigeration units remotely. This not only improves 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 further advance its technological innovations.

Michael Lowe, co-founder and CEO of Sunswap, expressed his excitement about working with BGF and other investors: “We are pleased to have the support of BGF and Shell Ventures in our mission to decarbonize cold chain logistics. This funding will play an important role 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 companies achieve their sustainability goals.”

BGF investor Rowan Bird highlighted the importance 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 looking to reduce their carbon footprint and operational costs. We are excited to support Sunswap as it further develops its technology and expands 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 highlighted the importance of Sunswap’s progress: “Sunswap’s latest acceleration towards a fully electric, zero-emission alternative to diesel-powered TRUs represents a major step forward for the logistics sector. We are proud to help scale this essential clean technology solution.”

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