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 said:
“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.”
Matthew Booth, Senior Managing Director in Macquarie’s Commodities and Global Markets group said:
“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.”