Subsea clean energy specialists EC-OG have received £1.6m from an investment consortium led by Par Equity.
EC-OG will use the funds to support its growth plans, which focus on the exploitation of its innovative Halo battery storage system designed for subsea applications. The investment will create up to 40 jobs in Aberdeen over the next 12 months.
Halo is a modular and scalable Lithium-ion battery storage system designed specifically for the demanding subsea environment. By providing a reliable and uninterrupted power source located directly at the point of use, Halo can reduce reliance on subsea umbilical cables and offer a solution to a number of challenges encountered by subsea operators. Some of these applications include:
In preparation for the expected growth in the use of large-scale subsea energy storage technology, EC-OG has recently undertaken a significant upgrade of its battery manufacturing capabilities at its Aberdeen facility. CNC battery cell welding equipment and automated battery module test systems have been installed, enabling a significant reduction in the lead time of the Halo energy system whilst maintaining high levels of quality & reliability.
The investment deal between in EC-OG and Par Equity is the first that has made since Par Equity’s recent partnership with the British Business Bank.
The funds were allocated as part of the Regional Angel Programme, a £75m programme to support some of the fastest growing technology companies across the Scotland, Northern Ireland and the North of England and is designed to provide early stage capital to smaller businesses with high growth potential.
Richard Knox, Managing Director of EC-OG commented: “This investment comes at a perfect time for EC-OG as we prepare for widespread commercialisation. In particular, the sharp drop in the price of oil means our target customers are increasingly looking for new technology to cut costs, which is a key selling point for us.
“Par Equity has understood the capability of the EC-OG team, and the technology, to enable a transition to clean, cost competitive energy in the emerging subsea clean energy market.
The new funds will allow us to accelerate scale-up of our automated battery manufacturing capability, significantly reduce the time from order to deployment and ensure we maintain excellent service support as the business grows.”
Par Equity, a venture capital firm based in Edinburgh that specialises in investing in innovative technology companies, was joined by existing investors, Orchard Venture Capital and Scottish Investment Bank. Simmons Energy, a division of Piper Sandler, acted as exclusive corporate finance adviser to EC-OG throughout the investment process and will continue to support it with future corporate activity.
EC-OG joins Par’s portfolio of nearly 40 companies, which includes emerging stars such as Current Health, a leading Edinburgh-based remote-patient monitoring platform; BrainwaveBank, the Belfast-based creator of a wearable headset device for EEG brain scanning that measures the mechanisms underpinning neurological disorders and therapies; and NPT, a Middlesbrough-based cleantech company with a patented process to convert non-food plant residue into biofuels and chemicals.
Paul Munn, Managing Partner of Par Equity said: “We are delighted that EC-OG is our first investment as a fund manager in the Regional Angel Programme. Par Equity is committed to seeking out and supporting the very best in high-growth technology start-ups. Our recent tie-up with the British Business Bank and our wider access to funds through our EIS Fund, Private Investor Network and the Scottish Investment Bank, gives us a breadth of firepower for our portfolio.
EC-OG have invested more than three years into the design and capability of their Halo battery storage system, building it alongside their prospective customers. We’re confident that they will be successful in their growth ambitions and I am delighted that Par Equity can provide the capital they need to turn them into reality.”
Advisers on the deal include Harper Macleod, Simmons Energy, Stronachs, Philip Hare Associates, Burness Paull, Macroberts and Johnston Carmichael.
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