Low Carbon Innovation Fund 2 invests in Connected Energy

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.

For more information please visit www.c-e-int.com, www.LCIF.vc  and www.Turquoise.eu.

Notes:

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.

 

End date :

Turquoise advises on sale of Low Carbon Innovation Fund portfolio company GT Energy

Turquoise is pleased to announce completion of the sale of its corporate finance client and investment portfolio company GT Energy UK Limited (“GT Energy”) to IGas Energy PLC (“IGas”).

 

GT Energy  is a developer of deep geothermal heat projects in the UK. GT Energy’s principal project is a 14MW deep geothermal project in the Etruria Valley, Stoke-on-Trent.  The project is anticipated to supply zero-carbon heat to the city of Stoke-on-Trent through a council-owned district heating network, which is currently under construction. Under the current timetable it is anticipated that geothermal plant construction will commence in Q2/Q3 2021, with the plant scheduled to supply heat by March 2022.

IGas is a leading British energy company, currently producing oil and gas from over 100 sites across the country. IGas is committed to playing an important role in the UK’s energy transition and the acquisition of GT Energy represents a first step in this strategy. IGas is also seeking high-grade potential opportunities for other forms of energy, including electricity generation and storage.

Francis Wright, Managing Director at Turquoise, commented: “This transaction represents a significant step forward in the development of the low carbon heat market in the UK. Deep geothermal projects in cities such as Paris and Munich prove that this technology can deliver low- carbon heat at large scale. IGas’s understanding of geology, drilling, project management and operations will be invaluable in helping to establish this technology in the UK.

“Turquoise has been working with GT Energy since 2013 and we are delighted to see the Company embarking on the next stage in its growth with a supportive and capable new parent.”

Turquoise is a merchant bank specialising in Energy, Environment, Efficiency, covering both buy side (investment and fund management) and sell side (fundraising and M&A). In addition to its role as corporate finance adviser to GT Energy, Turquoise also acts as fund manager of the Low Carbon Innovation Fund 1 on behalf of the Low Carbon Group at the University of East Anglia and supported by the European Regional Development Fund (ERDF). Low Carbon Innovation Fund 1 is the second largest investor in GT Energy with a 17% shareholding.

Low Carbon Innovation Funds 1 and 2 (both of which are supported by ERDF) focus on investments that reduce CO2 emissions and originally supported GT Energy due to the very large emissions reductions that could potentially be achieved if deep geothermal technology is rolled out across the UK.

 

For more information please visit www.turquoise.eu and www.lcif.vc.

End date :

Turquoise announces Low Carbon Innovation Fund 2 investment in Spark EV Technology

Turquoise, the London-based merchant bank specialising in energy, environment and efficiency, has announced its latest investment through Low Carbon Innovation Fund 2 (LCIF2).

The investment, part of an ongoing £530,000 funding round for Spark EV Technology, will support the company’s growth into the automotive market supporting business development efforts into China and expanding reach to European and North American customers. Harnessing live data and machine learning, Spark’s AI-based software produces highly-accurate, personalised range predictions for electric vehicles.

With individual predictions typically ten times more accurate than existing OEM solutions, Spark aims to accelerate global EV adoption by eliminating customer range anxiety. The company’s sophisticated technology has undergone more than 38,000km of real-world trials, across a range of brands, terrains and driving styles, and is being evaluated by a number of OEMs and Tier-1 suppliers worldwide.

Ian Thomas, managing director at Turquoise International, commented: “Spark’s technology addresses an important barrier to EV adoption, for passenger cars as well as buses and trucks. With EVs likely to make up 30% of global car sales by 2025, accurate range prediction is essential. This investment is consistent with LCIF2’s remit to support innovative, low-carbon technologies in the UK.”

Justin Ott, CEO and founder of Spark EV Technology, added: “We’re delighted to receive this funding through LCIF2. The equity investment will enable us to develop our product for retail and commercial EV customers and invest in business development resource to attract the fast growing China market and significantly expand our global footprint.

Managed by Turquoise, LCIF2 intends to extend and improve on the original Low Carbon Innovation Fund programme, which invested £20.5m in 46 companies as part of funding rounds worth over £76m. LCIF2 will invest an additional £11m, with the expectation to lead or otherwise help complete funding rounds worth over £40m.

Notes:

LCIF2 is a venture capital fund making equity or convertible loan investments in eligible small to medium sized businesses (SMEs) across Norfolk, Suffolk, Cambridgeshire, Peterborough and Hertfordshire 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 (UEA). ERDF is an investment programme part financed by the European Union. LCIF2 is part of the UK government’s portfolio of business support products.

End date :