A further highly successful round of investment for Connected Energy has secured £15m from five new major investors, and will be welcome news to all those keen to see increased energy security, improved use of clean energy and extended lifetime use of electric vehicle batteries in energy storage systems (BESS).
Caterpillar Venture Capital Inc., the Hinduja Group, Mercuria, OurCrowd and Volvo Energy have joined existing investors Engie New Ventures, Macquarie, and the Low Carbon Innovation Fund 2 with a total investment of £15m, to back this world-leading venture on the energy storage landscape. The investment will enable Connected Energy to scale up its operations and move into utility scale project development.
Investor interest in Connected Energy is particularly high because it is one of only a handful of companies in the world to have proven that second life vehicle batteries can be used in commercial battery storage systems, with the huge environmental benefit this brings.
Connected Energy already has sixteen operational systems across Europe in Belgium, Germany, the Netherlands and the UK, with its largest at Cranfield University in Bedfordshire, England.
This next phase of investment will enable Connected Energy to scale up its technology and operations in response to a growing energy storage market and increasing international availability of second life batteries. It will also facilitate the in-house development of the company’s first large scale M-STOR system which is planned to be around 20MW and 40MWh, employing a contracted ‘flow’ of batteries from multiple OEMs to provide long term operational services to customers.
With an estimated 6.7 million pure EVs operational worldwide and 34.7 million predicted globally by 2030, the potential for battery reuse is vast, as is the need to ensure the resources in the batteries are used effectively. With this investment, Connected Energy aims to scale up its business to utilise a predicted ramp-up in 2nd life battery availability in 2024/25.
Rising fuel prices have caused many organisations to consider the use of energy storage to reduce costs, increase self-consumption and generate new revenue as well as solve problems such as supply constraints. As a consequence, Connected Energy has already booked more projects in the first three months of 2022 than in any previous year.
“In order to grow the second life battery industry, strong pan-value chain relationships will be critical to Connected Energy as it expands, and the company’s new investors will complement this effort,” says Connected Energy CEO Matthew Lumsden.
“This marks a key gateway for our business. Our group of investors now span battery supply through to project deployment and monetisation, and critically this will enable us to plan and manage technology and project development to maximise the volume of batteries that are redeployed in second life applications.”
Joachim Rosenberg, President Volvo Energy said: “There is a great deal of untapped potential in the second-life use of batteries. This forward-leaning investment aims to facilitate the scaling-up of second-life battery energy storage systems and further secure circular business opportunities for the forthcoming ramp-up in Volvo Group’s second-life battery returns.”
He continues: “Together with Connected Energy, we will minimize the environmental impact of the batteries that has powered Volvo Group applications. By repurposing the batteries, we obtain the full value from them – from a climate, environment and business perspective.”
Jihad Salahuddin, Caterpillar Senior Investment Manager, CVCI said: “Connected Energy’s technology to repurpose EV batteries has demonstrated strong promise in terms of its current performance and upside capabilities. We are excited about this investment and see it as an important element of our strategic roadmap in the battery circular economy and our long-standing Enterprise commitment to sustainability.”
“Amid the rapid electrification of the transport sector and the growing intermittent renewable sources of power supply, we are joining with Connected Energy to provide needed sustainable flexibility solutions in energy markets,” said Alexis Flandre, Managing Director of Energy Transition at Mercuria, “We look forward to working with Connected Energy and bringing our power trading and battery metals supply chain expertise.”
Turquoise International, UK’s leading ClimateTech merchant bank, acted as corporate finance adviser to Connected Energy in the fundraising.
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About Connected Energy
Connected Energy is a world leading innovator of energy storage systems that utilise second-life electric vehicle batteries. The company’s E-STOR and M-STOR units have a modular and scalable design that can be adapted to control any electric vehicle battery pack.
Its systems can elongate the life of an EV battery pack by up to an additional 10 years and provide grid service revenues, solar optimisation, EV charging support, import capacity avoidance, peak shaving and micro grid balancing services. Systems can provide a positive carbon benefit of 450tCO2e for every 1MWh installed compared with a first life BESS.
Optimal system performance is maintained through the Connected Energy Management Platform which provides customers with interactive management information. Connected Energy’s portfolio of projects in operation and development range from 90kWh to 40MWh across the UK and Europe.
For more information visit: www.c-e-int.com
Volvo Energy is a business area within the Volvo Group dedicated to provide essential support and infrastructure during the first-life, i.e. when batteries are mounted on vehicles, whilst subsequently securing reliable and sustainable second-life opportunities prior to battery recycling. Consequently, Volvo Energy supports to optimize first-life, creates and prolongs the second-life opportunities thereby expanding the value creation from a climate, environment and business perspective
Caterpillar is supporting customers during the energy transition to a reduced-carbon future through investments in new products, technologies and services. The company currently offers battery-powered equipment for the mining, construction, energy and transportation industries and recently announced seven sustainability goals to achieve by 2030, including that 100% of Caterpillar’s new products through 2030 will be more sustainable than the previous generation.
The Hinduja Group is one of India’s premier diversified and transnational conglomerates, employing about 200,000 employees across 38 countries and owns businesses in automotive, information technology, media, entertainment, and communications, banking and financial services, infrastructure project development, cybersecurity, oil and specialty chemicals, power, real estate, trading, and healthcare. Founded over a hundred years ago by Shri PD Hinduja whose credo was “My duty (dharma) is to work so that I can give”, it supports charitable and philanthropic activities across the world through the Hinduja Foundation.