Connected Energy, an innovator of site-integrated energy storage solutions, today announced it had secured over £5 million investment from Sumitomo Corporation, ENGIE, Macquarie Group and others.
The investment provides Connected Energy with a platform to realise its next phase of ambitious international growth plans. Connected Energy has developed the world’s only commercially available stationary energy storage system that uses electric vehicle battery packs after they have completed their useful lives on-board vehicles.
In the context of rapidly increasing global electric vehicle sales, reusing electric vehicle batteries by giving them a second life in energy storage systems is a compelling circular economy innovation. Doubling the working life of batteries, this enables greater exploitation of the resources embedded during the manufacturing process, adding to the sustainability credentials of electric vehicles as well as the electricity system. Using second life batteries also reduces system costs - making energy storage systems financially viable for a wider range of end users.
The increasing penetration of distributed and intermittent renewable energy generation creates challenges for the electricity system. A resilient electrical network to accommodate these diversified energy resources will become increasingly important and energy storage systems are expected to be critical parts of the system.
Connected Energy’s solution (called E-STOR) is a British designed technology that helps a range of commercial customers to mitigate their network and supply costs and enjoy improved energy resilience. E-STOR provides the same performance as first life batteries, but with a reduced cost and environmental impact.Connected Energy has 11 E-STOR systems deployed in the UK, Belgium, Germany and the Netherlands.
Connected Energy, based in Newcastle upon Tyne with a technical centre near Norwich, has developed strategic relationships with Renault and other electric vehicle manufacturers and has a growing pipeline of blue-chip clients and projects ranging from 60kW to 20MW.
Turquoise International, the merchant bank specialising in finance for energy and environment, was the exclusive financial adviser to Connected Energy for the fundraising, and also participated in the funding round.
Matthew Lumsden, CEO of Connected Energy said:
“We’re very pleased with this result, Sumitomo already have experience of working with 2nd life batteries and our relationship with Engie has gone from strength to strength since their first investment in 2017.The time is now right for us to scale up the business and this investment will enable us to do so.We have some exciting times and projects ahead of us and look forward to further capturing the benefits of the circular economy.”
Shingo Hosotani, Department General Manager, Business Development Department No.1, Sumitomo Corporation Europe.
“Sumitomo Corporation Group has focused on the broad value chain of electric vehicles and a key focus is the secondary use of electric vehicle batteries. By collaborating with CE, we expect to create the new business between mobility sector and energy sector. Going forward, we intend to continue identifying changes in the needs of society and contributing to the development of industry across the globe by investing in companies with innovative technology.”
Hendrik Van Asbroeck, MD Engie New Ventures comments:
“Engie offers innovative and effective energy solutions as-a-service to overcome the challenges of the transition to clean energy for our customers. Connected Energy is one of the cornerstones for success with its leading and environmentally friendly energy storage solutions. Their specific know how on second life batteries enables ENGIE access new types of storage projects. This investment is a further confirmation of the exciting opportunity to develop new business opportunities together.”
“With demand for renewable energy capacity rising globally, we see significant opportunity in partnering with industry to bring new and evolving technologies to market. Our expertise in energy markets means that we are uniquely positioned to help Connected Energy realise its potential - helping energy companies and EV manufacturers alike capture the value in 2nd life EV batteries, and delivering sustainable low-cost energy storage.”
FOR MORE INFORMATION PLEASE CONTACT:
Matthew Lumsden - CEO
T: 0191 4957321/ 07909 681334
About Connected Energy
Connected Energy is an engineering led innovator in energy storage. Its technologies that utilise second life electric vehicle batteries are rapidly changing the way intensive energy users can access the benefits of low-cost, on-site solutions. The E-STOR system is modular and scalable as well as straight forward to install and operate for energy intensive clients to flexibly control and reduce their energy costs, and develop new revenue streams. .
The company provides a range of solutions from system feasibility assessments and system design, through to standard and bespoke system supply, equipment installation, maintenance and operation. A team of specialists provide end-to-end expert support to help clients realise value: storing excess energy to release it when needed; drawing on stored energy to optimise energy strategies; using the stored energy at times of peak demand or when tariffs are high.
Connected Energy, operating in the UK and Europe, is wholly owned by Future Transport Systems Limited a UK systems integrator and developer of e-mobility and energy storage hardware and software.
Connected Energy is a partner SmartHub SLES, one of the recently announced Localised Energy System demonstration projects funded through the £102.5 million Prospering from the Energy Revolution Challenge, part of the UK Government’s Industrial Strategy Challenge.Through this project Connected Energy aims to install a multi-megawatt E-STOR system using a range of second life electric vehicle batteries in West Sussex.
About Macquarie Group
Macquarie Group Limited (Macquarie) is a diversified financial group providing clients with asset management and finance, banking, advisory and risk and capital solutions across debt, equity and commodities. Founded in 1969, Macquarie employs 15,715 people in 30 markets. At 31 March 2019, Macquarie had assets under management of £305.8 billion. For further information, visit www.macquarie.com
About ENGIE New Ventures
ENGIE New Ventures (engieventures.com) is the corporate venture arm of ENGIE, the global energy and services provider. ENGIE is committed to leading the energy revolution, moving towards a more decarbonized, decentralized and digitized world. ENV is a €170 million fund focused on taking minority stakes in high-performing startups. ENV has deployed €75 million of capital across 21 investments. Portfolio companies include: Kiwi Power, Advanced Microgrid Solutions, Gogoro, Heliatek, StreetLight Data, Sigfox, and HomeBiogas. Offices are located in Paris and it has scouting activity in San Francisco, Singapore and Tel-Aviv.
We are a global energy and services group, focused on three core activities: low-carbon power generation, mainly based on natural gas and renewable energy, global networks and customer solutions. Driven by our ambition to contribute to a harmonious progress, we take up major global challenges such as the fight against global warming, access to energy to all, or mobility, and offer our residential customers, businesses and communities energy production solutions and services that reconcile individual and collective interests. Our integrated - low-carbon, high-performing and sustainable - offers are based on digital technologies. Beyond energy, they facilitate the development of new uses and promote new ways of living and working. Our ambition is conveyed by each of our 150,000 employees in 70 countries. Together with our customers and partners, we form a community of imaginative builders who invent and build today solutions for tomorrow. Its 2018 turnover: 61 billion Euros.
About Sumitomo Corporation
Sumitomo Corporation (“SC”) is a leading Fortune 500 global trading and business investment company with 110 locations in 66 countries, regions and 22 locations in Japan. The entire SC Group consists of more than 900 companies. SC conducts commodity transactions in all industries utilizing worldwide networks, provides related customers with various financing, serves as an organizer and a coordinator for various projects, and invests in companies to promote greater growth potential. SC’s core business areas include Metal Products, Transportation and Construction Systems, Infrastructure, Media and Digital, Living Related and Real Estate, Mineral Resources, Energy, and Chemical and Electronics.
From left to right - Ali Naini - Turquoise Capital, Matthew Lumsden – Connected Energy, Arnout Dijkhuizen – Engie New Ventures, Shingo Hosotani – Sumitomo Corporation, Matt Booth – Macquarie Bank
About us: Connected Energy’s British designed battery storage systems and energy optimisation expertise are rapidly changing the way industrial and commercial energy users can capitalise on load flexibility. Our mission is to catalyse smarter, sustainable approaches to energy use.