Hydrogen truck maker pivots to licensing to pull back from ‘brink of collapse’

UK-based HVS will focus on licensing its hydrogen propulsion systems rather than making trucks, as its returning founder blames the firm’s former leadership for taking it to the “brink of collapse.”

Abdul Waheed, the company’s founder and now CEO, said the dramatic shift was a “direct consequence” of the previous leadership’s strategy of concentrating on capital-heavy hydrogen truck manufacturing.

Launched in 2017, HVS distinguished itself from other hydrogen truck players by not relying on existing truck chassis, which it said allowed it to streamline the design of its hydrogen powertrain.

Describing the approach as “financially untenable and unsustainable,” the company stated that it is urgently seeking £0.7m ($0.87m) to avoid “immediate legal action” after it accrued £7m ($8.7m) in supply chain debt and a £1.4m ($1.7m) creditor demand.

That’s despite early investor EG Group, forgiving £25m ($31.1m) of debt.

HVS also confirmed to H2 View that with four trucks in its inventory, the restructuring costs will reach £10m ($12.45m) – although its immediate focus is clearing the £7m debt.

The company said that recent measures, such as a £1m ($1.2m) “bridge fund” investment from Qatar’s Excelledia Ventures Group, were “reactive measures” to “counteract earlier strategic neglect.”

HVS claims its former leadership team ignored external warnings from a Barclay’s hydrogen investment expert, who said the sole truck manufacturing focus without cashing in on licensable technology was an “unsustainable strategy destined to fail.”

Waheed stepped in as a Director, Board Member and CEO on November 1 and immediately fired external advisers.

The Glasgow-based company will now focus on licensing its powertrain designs to existing truck manufacturers. This includes fuel cells, batteries, axles, cooling and chassis design.

“Last year, Tevva, Hyzon, Quantron and Arrival went bust,” Waheed said in a statement. “So, why are we still standing? Our vehicle control software and propulsion technology are the result of £50m ($62.3m) in investment to date, allowing us to shift from a capital-intensive manufacturing model to a lean, low-risk technology licensing model.”

Waheed told H2 View that HVS was in the “advanced stages” of finalising a term sheet with a Spanish truck OEM to use HVS’ hydrogen system designs.

“This mirrors the €226m ($234m) grant awarded to Daimler in 2024 for hydrogen truck development, and the Spanish manufacturer is seeking similar co-investment to bring HVS’s designs to market, generating valuable licensing revenue for HVS,” he added.

In addition to its powertrain, HVS says it will look to supply its patented AI emissions reduction technology to diesel truck OEMs. It claims the AI-SEMSA™ product can cut carbon emissions by five tonnes per truck per year.

Taking advantage of “India’s minimal road safety regulations” which “allow for rapid deployment,” the new CEO told H2 View that it would target sales within six months.

The company now plans to engage with Barclay’s Climate Ventures’ £500m ($623m) fund, the £1bn ($1.24bn) Qatar-UK Climate Tech Fund, and the €1.8 trillion ($1.86 trillion) European Green Fund.