Subsea clean energy company EC-OG has said it has received £1.6 million from an investment consortium led by Par Equity. The company plans to use the cash to commercialize 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," EC-OG said.
Halo is a modular and scalable battery storage system that operates in a demanding subsea environment.
"By removing the need for undersea power cables, [the battery storage system] provides a reliable, uninterrupted power supply, located at the point of use. Halo provides a temporary, permanent or back-up deep sea electrical power solution at a fraction of the cost of alternatives," EC-OG said.
The investment in EC-OG is the first that Par Equity has made since its recent partnership with the British Business Bank. The funds were allocated as part of the Regional Angel Programme.
The £75m program supports some of the fastest growing technology companies across the North of England, Scotland and Northern Ireland and is designed to provide early stage capital to smaller businesses with high growth potential.
Cost-cutting - A Key Selling Point
Richard Knox, Managing Director of EC-OG commented: "This investment comes at a perfect time for EC-OG as we prepare for widespread commercialization. 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 specializes 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 an exclusive corporate finance adviser to EC-OG throughout the investment process and will continue to support it with future corporate activity.
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.”
Martin Bell, Managing Director of Orchard Venture Capital added: "Orchard Venture Capital are delighted to be part of this investment in ECOG and we look forward to the business developing the battery technology for the new clean energy market.”