Matthew Lumsden, Connected Energy CEO
The Newcastle-based energy storage solutions specialist will use the funding to expand across the continent.
Connected Energy, which is based at Newcastle’s Science Central, has secured a £3m investment from Macquarie Group and ENGIE.
The investment will help the company realise its ambitious growth plans as it looks to expand further across the UK and into Europe.
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.
The reuse of electric vehicle batteries is a compelling circular economy innovation. Second life enables greater exploitation of the carbon and energy embedded in the manufacturing of the batteries, 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.
Connected Energy’s solution (called E-STOR) is a British designed technology that helps industrial and commercial customers to mitigate their network costs and achieve uninterrupted power.
E-STOR provides the same performance as first life batteries, but at a lower cost and in an environmentally friendly manner.
The company has already developed strategic relationships with Renault and other electric vehicle manufacturers and has a promising pipeline of blue-chip clients and projects where it expects to deploy the E-STOR system.
Matthew Lumsden, Connected Energy CEO, said: “We are delighted that Macquarie and ENGIE have provided this significant financial and management value for our phase of aggressive market growth. We have a tremendous pipeline of demand for battery-based storage systems.
“Our E-STOR system is proven, with very positive feedback from customers appreciating its full service offering as well as our low costs and exceptional sustainability credentials.
"In this uncertain energy landscape we look forward to capitalising on the burgeoning need for grid balancing schemes through energy storage, as well as adding to the sustainability of electric vehicles.”
Matthew Booth, senior managing director in Macquarie’s commodities and global markets group, said: “The provision of energy storage to support grid stability and create a charging network for electric vehicles will be a major theme in power infrastructure over the coming years.
"We are pleased to have invested in this innovative company which has developed an environmentally friendly and low cost solution to help meet this need.”