Arcola Energy, which specialises in fuel cell technology integration, will be one of the first tenants at the Michelin Scotland Innovation Parc (MSIP) - a joint venture between Dundee City Council, Michelin and Scottish Enterprise on the former tyre factory site.
The London-based company has confirmed plans to set up a major engineering and manufacturing plant at MSIP after winning a £1.5 million grant from Scotland’s enterprise agency.
The new Dundee base will support Arcola’s work in adapting heavy-duty vehicles to zero-emissions and cutting-edge projects such Scotland’s hydrogen-powered train.
The move will see up to 135 jobs created over a three-year period, according to the firm.
The first phase will bring in around 20 employees to support the train project and product development for hydrogen-powered vehicles, with the remainder being recruited over the following years as production at the site is expanded.
Arcola also has a rail engineering facility at Bo’ness and Kinneil Railway and plans to establish a service centre in Glasgow.
Arcola chief executive Dr Ben Todd said: “We were attracted by MSIP’s ambition to become a leading hub supporting the decarbonisation of Scotland’s transport system and infrastructure, and in particular by the hydrogen production and fuelling facility that MSIP is building to support development and deployment of zero-emission vehicles.
“We are very pleased to be an early part of it.
“This new facility will be Arcola’s main manufacturing base, supporting our growing business needs as we expand our range of heavy-duty fuel cell vehicles.”
MSIP chief executive Greig Coull added: “When MSIP was established, jobs creation was the priority and that is still the case.
“Our ambition is to have 850 jobs located at the Innovation Parc by 2028. Today’s announcement is a big step towards achieving that.”
Andy McDonald, head of Low Carbon Transition at Scottish Enterprise, hailed the move as “great news” for the company, the people of Dundee and the green transport industry.
“The creation of MSIP has been a huge step in supporting the growth of this sector and Arcola will be a really exciting addition to the facility, as well as a real boost to the efforts towards establishing Scotland as a world leader in sustainable mobility,” he said
Economy secretary Fiona Hyslop added: “This announcement is another positive step forward for MSIP and Dundee as a hub for the green jobs that will be vital to our post-pandemic recovery.”