Sunswap, a Surrey-based cleantech startup, has raised £17.3 million in a funding round led by BGF, with participation from Shell Ventures, Move Energy, Barclays, and the Clean Growth Fund.
The investment is another step forward in the company’s mission to provide a sustainable, cost-effective alternative to traditional diesel-powered refrigeration units used in the transportation of temperature-sensitive goods.
Sunswap’s innovative approach centers on its “Endurance” Transport Refrigeration Unit (TRU), a fully electric system that combines advanced battery technology with solar power, completely eliminating tailpipe emissions.
Unlike legacy diesel units that have long dominated the industry, Endurance TRUs harness solar energy through panels mounted on the roofs of trailers, while a cloud-based telematics system offers real-time monitoring and control.
This technology supports the decarbonization of cold chain logistics and offers significant operational savings and a lower total cost of ownership—a compelling proposition for fleet operators.
Michael Lowe, Sunswap’s CEO and co-founder, expressed his enthusiasm for the company’s future, stating,
“This funding will be instrumental in accelerating our growth and expanding our presence in the UK and European markets. It will enable us to ramp up production, support further customer trials, and invest in the development of our zero-emission technology. Together, we will work towards a cleaner, greener future for cold chain logistics, helping businesses meet their sustainability targets.”
Why decarbonizing the cold chain matters
To understand the importance of Sunswap’s mission, it’s crucial to consider the environmental impact of traditional cold chain logistics.
The cold chain refers to the temperature-controlled supply chain that transports perishable goods, including food, medicine, and other sensitive products.
Currently, this chain relies heavily on diesel-powered auxiliary engines to keep goods cold during transit.
However, these engines are significant polluters, emitting not only carbon dioxide, a primary greenhouse gas, but also nitrogen oxides and particulate matter that contribute to poor air quality, especially in urban areas.
A report by Cenex, a non-profit consultancy specializing in transport and energy, highlights the environmental consequences of relying on diesel-powered refrigeration.
The report, which accompanied Sunswap’s initial research and development phases, underscores the cold chain’s lagging position in the broader movement toward sustainable supply chains.
While the transport sector is gradually transitioning to lower-emission and electric vehicles, the auxiliary engines powering refrigeration units have continued to pollute, often escaping the scrutiny applied to the primary engines of transport vehicles.
Commercial success and industry impact
Sunswap has already demonstrated the viability of its technology through successful commercial trials with major industry players like Tesco and Müller.
These trials have shown that Sunswap’s Endurance units match and often exceed the performance of traditional diesel units, delivering superior cooling efficiency while slashing emissions.
The company’s growing customer base, including partnerships with the equipment services provider TIP Group and logistics giant DFDS, signals strong market confidence in Sunswap’s technology.
Rowan Bird, an investor at BGF, praised Sunswap’s potential to lead the charge in decarbonizing the logistics industry.
“As the logistics industry moves towards more sustainable practices, Sunswap’s TRU technology stands out as a leading solution for fleet operators seeking to reduce their carbon footprint and operational costs. BGF is excited to support Sunswap in continuing to develop its technology, expand manufacturing capabilities, and strengthen its portfolio as a leader in the field of climate tech.”
Accelerating growth and innovation
With the fresh infusion of £17.3 million, Sunswap is poised to accelerate the rollout of its Endurance units across the UK and Europe.
The company plans to expand its production capabilities to meet increasing customer demand, enhance its nationwide service network, and further advance the technological development of its zero-emission TRUs.
This growth is not just about scaling a business; it’s about driving a critical transformation in how cold chain logistics operate in a world increasingly focused on sustainability.
Stephen Price, Investment Director at the Clean Growth Fund, which has been backing Sunswap since March 2022, highlighted the company’s rapid progress.
“Sunswap is poised to accelerate the decarbonization of cold chain logistics and rapidly transition the industry away from highly polluting legacy technology.”
The road ahead: towards a sustainable future
Sunswap’s journey introduces a broader shift in the logistics industry toward sustainable solutions.
As James Ferrier, Director of Principal Investments at Barclays Sustainable Impact Capital, pointed out, the logistics sector generates annual revenues of £1.3 trillion and contributes £185 billion to the UK economy.
Given these figures, adopting clean technology like Sunswap’s makes both financial and environmental sense.
It appears that Sunswap will scale its operations, it will help businesses achieve their sustainability targets and contribute to a cleaner, healthier environment for all.
Climate change poses an existential threat, innovations like Sunswap’s Endurance TRU offer a glimpse into a future where essential industries can thrive without compromising the planet.