Northern Powerhouse Investment Fund has completed a £400,000 investment in CRESS Systems, an energy storage provider for industrial energy efficiency.
The deal marks the first equity investment in the Tees Valley region from NPIF – Enterprise Ventures Equity Finance. This investment is part of a £523,000 funding round from NPIF and business angel investors.
CRESS Systems, which designs and manufactures energy storage systems, is focusing its attention on the container ports market.
This investment will be used to take the CRESS product into production and enable the company’s first sales to leading shipping port customers.
The funding will also provide a boost to employment in the North East with CRESS opening new premises in Darlington, and it plans to hire several engineering staff and award contracts to engineering businesses in the region.
Richard Bradshaw, CEO at Cress Systems, said: “The Tees region provides us with access to highly qualified engineering staff and a range of suppliers with world class expertise in high speed rotating machinery and composite materials. Several of our existing suppliers are based in the region and this investment is allowing us to move some overseas suppliers back onshore. This investment led by Enterprise Ventures is helping us grow the company into a leading provider of energy storage solutions to the worldwide market.”
Tees Valley Mayor, Ben Houchen said: “This investment is great news for a growing Teesside business. They have chosen our area because we have the skills and the engineering supply chain to meet their needs. The fact the first equity investment in our area from the Northern Powerhouse Investment Fund is in a technical company working to improve energy efficiency in international trade not only speaks volumes about the economic strengths of Tees Valley, but also highlights the global opportunities that will define our future economic success.”
Simon Crabtree, investment manager at Enterprise Ventures, part of Mercia Technologies, said: “CRESS is the first of many high technology firms that we are looking to fund in the Tees Valley region via NPIF – Enterprise Ventures Equity Finance, allowing us to leverage the area’s world class access to engineering and manufacturing support.
Operating from the British Business Bank’s Sheffield head office, the Northern Powerhouse Investment Fund provides a mix of debt and equity funding (£25,000 to £2m). It is supported financially by the European Union using funding from the European Regional Development Fund (ERDF).