B.C. hydrogen fuel cell maker Loop Energy (TSX:LPEN) is getting a $9.7 million loan from the federal government to help it increase its manufacturing capacity.
The funding comes from the Pacific Economic Development Canada’s Jobs and Growth Fund. Loop Energy will receive the funding over three years, from 2022 to 2025, in the form of an interest-free loan. Loop Energy will begin repaying the loan in 2025.
“The Jobs and Growth Fund investment will help Loop Energy scale our production capacities over the coming years,” said Loop Energy CFO Damian Towns.
“Loop Energy appreciates the Government of Canada’s contribution and sees this as an indicator of the commitment to transition to clean technologies, including hydrogen, to support the global clean energy transition.”
Loop Energy developed the eFlow fuel cell, which built on fuel cell technology with improved efficiencies, lower size and weight, and increased power. Loop makes fuel cell stacks and range extenders, which can be used in battery electric vehicles to improve their ranges without having to recharge.
The formerly private company went public last year in a $100 million initial public offering.
“Investments in companies like Loop Energy show that B.C. is building a new green climate industry, while creating well-paying middle class jobs in our communities," International Development Minister Harjit Sajjan said in a press release. "I look forward to seeing Loop Energy scale up to meet the rising global demand for hydrogen fuel cell technology, and build a cleaner and greener future for all.”