H2CHP, a cleantech spinout from Durham University, has secured £1.5 million in new funding to support the development of its next-generation distributed power generation technology. The investment round includes £300,000 from the Northeast Spinout Inspire Fund managed by Northstar Ventures, £500,000 from Blackfinch Ventures and £700,000 in Innovate UK grant funding through its investor partnership program.

The company is developing fuel-flexible electric generators designed for use in data centers, ports, construction sites, backup power systems and microgrids. Its technology can operate using hydrogen, ammonia, biofuels and e-fuels, offering lower-emission alternatives to conventional generators while reducing supply chain risks associated with permanent magnets and rare-earth materials.

A key focus of the latest funding round is the development of a linear electric motor that eliminates the need for rare-earth materials, addressing growing concerns around supply chain security and sustainability.

H2CHP has gained momentum through several recent achievements, including acceptance into the Hydrogen Innovation Initiative led by Connected Places Catapult and selection for Tech Nation’s 2026 Climate Program, which recognizes leading UK climate technology startups. The company has also secured more than £1.1 million in Innovate UK funding for its Clean Maritime Demonstrator project.

The technology behind H2CHP is based on more than a decade of research led by Professor Tony Roskilly, Professor of Energy Systems at Durham University and Co-Director of the Durham Energy Institute. CEO Stephen Hampson joined the company through the Northern Accelerator’s Executives into Business program and brings experience in engineering and venture capital.

The Northeast Spinout Inspire Fund, valued at £22.5 million, is backed by five North East universities and the Northeast Combined Authority to help commercialize regional research and innovation.

Investors believe H2CHP is well positioned to capitalize on increasing demand for resilient, low-carbon power systems, particularly as sectors such as maritime transport, microgrids and AI-driven data centers seek cleaner and more reliable energy solutions.