Turquoise, the UK merchant bank specialising in energy, environment and efficiency, has announced a £350,000 investment in Connected Energy, the third deal for the Low Carbon Innovation Fund 2 (LCIF2) since it started investing in June.
Connected Energy specialises in reusing electric vehicle (EV) batteries, which typically become redundant after losing just 25% of their capacity, to build the grid-scale energy storage systems needed to smooth fluctuations in demand by large energy users, and in supply by solar and wind farms. Connected Energy systems currently range in size from 300kW behind the meter systems, to a 12MW system (currently in development) and modular multiples of those.
Ali Naini, managing director at Turquoise, commented: “Connected Energy helps reduce emissions in a number of innovative ways, such as reducing the cost of electric vehicles by increasing the value of their used batteries, reusing valuable materials in those batteries, and creating energy storage systems that help with the wider adoption of renewable energy. They also have many of the attributes necessary for creating strong investor returns. This makes the company a perfect fit to the remit of LCIF2.”
Matthew Lumsden, CEO and founder of Connected Energy, added: “We’re delighted to add LCIF2 to our growing roster of investors. The fund is an interesting hybrid, backed by and therefore strengthening our links with local and national government, but with a typical private fund’s focus on financial returns.”
LCIF2 is funded by European Regional Development Fund, with the UK Ministry of Housing, Communities and Local Government as the Managing Authority.
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. Its 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.
LCIF2 is managed by Turquoise and is a venture capital fund investing in eligible small to medium sized businesses based in England, particularly the areas covered by its local government backers, developing products and services which will have a beneficial environmental impact.
LCIF2 is funded by the European Regional Development Fund (ERDF), following a successful bid by Norfolk County Council and the University of East Anglia. ERDF is an investment programme part financed by the European Union. LCIF2 is part of the UK government’s portfolio of business support products.
LCIF2 has received £10.9m (for co-investment alongside private monies) from the European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme 2014-2020. The Ministry of Housing, Communities and Local Government is the Managing Authority for this funding. Established by the European Union, the ERDF helps local areas stimulate their economic development by investing in projects which will support innovation, businesses, create jobs and local community regenerations. For more information visit www.gov.uk /european-growth-funding.