(Oslo/Hamburg/London, 12 April 2021)
EnergyNest, the global market leader in Thermal Batteries, today announces it has signed an investment agreement with Infracapital, the infrastructure equity investment arm of the FTSE 100 listed M&G plc. The agreement comprises a €110 million investment into EnergyNest to enable further international growth providing financed turnkey energy storage solutions for industrial clients. Infracapital will be the largest shareholder in the business.
Following significant growth and international expansion of the Norwegian technology company, Infracapital has taken the opportunity to invest in the ThermalBattery™ leader in what has been evaluated to be a €300+ billion market. EnergyNest is one of the first thermal storage companies globally with a market ready Battery and projects in execution, including for Norwegian chemical giant Yara, and Italian energy company Eni where installation is expected to take place in Q2 this year. The additional funding will enable the scaling of the deployment of EnergyNest’s Thermal Batteries, that are designed to store energy in the form of heat and help decarbonize industrial heat processes.
With the EU’s target to reduce CO2 emissions by at least 55% by 2030, and bullish international targets to reach net zero and ‘Build Back Better’, decarbonizing hard-to-abate sectors will be a major challenge in the coming years. The investment from Infracapital will allow EnergyNest to offer long term, financed energy storage solutions to customers with substantial energy and carbon cost savings.
Christian Thiel, EnergyNest CEO, said:
“Together with Infracapital we can deliver CO2 and energy cost savings to even more customers from day one. With our fully-financed turnkey solutions we make it easier for industry players to adapt our climate friendly technology at zero upfront investment costs. Infracapital are the ideal partner for us to grow EnergyNest internationally, with their invaluable experience and network.”
Andy Matthews, Head of Greenfield at Infracapital, said:
“We are excited to announce this partnership with EnergyNest. Its technology is providing innovative environmental and economic benefits. With Governments around the world putting in place ambitious carbon reduction targets, we see great potential for growth. We are delighted to play a role in providing a solution to store and decarbonise energy whilst creating long-term value for our investors.”
This investment is the latest milestone following the most successful year since EnergyNest’s inception. EnergyNest has seen a rapid uptake in interest in its technology in 2020, including a partnership with Siemens Energy involving a first joint project for a leading Japanese energy company as well as new client relationships. Further, EnergyNest has delivered its first commercial project to Italian utility Eni and started the execution phase of further projects, one of them being awarded and funded by Innovation Norway. EnergyNest itself grew internationally in 2020, opening a new subsidiary in Hamburg, Germany and hiring senior executives from Denmark’s Orsted.
NOTES TO EDITORS
Decarbonising industrial processes which generate excess heat remains one of the major challenges in the global fight against climate change. The electrification of industrial heat is emerging as a significant decarbonization opportunity. EnergyNest has developed and implemented a cost-effective technology that allows either the use of industrial waste heat as primary energy or the use of renewable power in industrial heat processes – a market that is estimated to be worth around EUR 300 billion by 2030.
EnergyNest has a proven track record and has several commercial projects in the pipeline, including a ThermalBattery™ for a solar energy plant of Italian energy company Eni , and a “steamon-demand” project with Norwegian chemical company Yara. EnergyNest was advised in this transaction by Augusta & Co, led by Charlie Hodges.
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EnergyNest is a Norwegian technology company founded in 2011. The company has developed a highly flexible Thermal Batteries, which enable customers along the entire energy system to maximize the value of their energy. It is the first company that developed Thermal Batteries on a market-ready level. EnergyNest has already several commercial projects under development with the first one to be finalised in the first half of 2021. EnergyNest’s technological solutions have
been recently recognised with the following awards: Mission Innovation TOP 100 Global Innovations; Nordic Cleantech winner; Horizon2020 SME-I Award; WWF Climate Solver Award.
Infracapital invests in, builds and manages a diverse range of essential infrastructure to meet the changing needs of society and support long-term economic growth. We take an active role in all of our investments, whether nascent or large, to fulfil their potential and ensure they are adaptable and resilient. Our approach creates value for our investors, as we target investments with the scope for stable and sustainable growth. Our portfolio companies work closely with the
communities where they are based, to the benefit of all stakeholders. Infracapital is well positioned to deliver the significant investment required to help build the future. The founder-led team of experienced specialists has worked with more than 50 companies around Europe and has raised and manages over £6.5 billion of client capital across six funds.
Infracapital is part of M&G Plc, a leading European savings and investments business. M&G manages the long-term savings of more than 5 million people and is a major investor in the UK and in the global economy. Total assets under management and administration are £367 billion (as at 31 December 2020).
As of March 29, 2019 EnergyNest and AC Boilers have signed a Memorandum of Understanding for the future collaboration. Our joint efforts are focusing on the implementation of the Thermal Battery technology in steam power plants (e.g. biomass, combined cycle and waste-to-energy) as well as industrial steam grids.
Steam based Thermal Batteries will boost flexibility of steam power plants – an aspect that not only will enable these power plants to balance high shares of renewables on the grid but will also increase profitability. Industrial steam grids will benefit largely from increased energy efficiencies as well as the replacement of fossil fuels with renewable energy via Thermal Batteries.
With over 150 years of experience in steam generation and burner technology and a track record of 1000 units exceeding 80,000 MW installed worldwide, AC BOILERS SpA, formerly Ansaldo Caldaie, is the largest Italian original technology Boiler Manufacturer, providing the full range of steam generator technologies (https://www.acboilers.com/en/).
EnergyNest has been awarded a SME-I phase 2 project grant by the EU Horizon 2020 program. The SME Instrument is part of the European Innovation Council (EIC) pilot that supports top class innovators, entrepreneurs and small companies with funding opportunities and acceleration services. For the first round in 2019, the application success rate was < 4%. The objective of the respective project is to demonstrate EnergyNest’s Thermal Battery system at a commercially operated power plant, where waste-heat will be recovered, stored and dispatched at the time of highest value to improve the plant’s energy efficiency and reduce its CO2 footprint. The demonstration plant will familiarize our customers with the Thermal Battery technology, establishing trust in its performance, benefits and our capabilities to execute commercial projects.
EnergyNest has developed a breakthrough Thermal Battery solution that addresses three of the EU 2020 Energy goals, namely reducing greenhouse gas emissions by at least 20%, increase the share of renewable energy to at least 20% of consumption, and achieve energy savings of 20% or more. By storing energy in the form of heat rather than electricity our technology unlocks a vast new market that has so far been largely overlooked: the Heat-2-Value opportunity. Energy-intensive industries and many thermal power plants waste large quantities of high-temperature heat. The Thermal Battery recovers, stores and discharges this heat upon demand to produce electricity, process steam/heat, district heating and even cooling. Our customers make money with the Thermal Battery by reducing their consumption of fuel and emission of greenhouse gases. Even with a conservative market uptake we can save more than 500 million tons of CO2 from 2020 to 2040.
Ultimately, coal will be replaced by renewable energy. This is fantastic! Already now coal power plants are being converted to burn biomass: Denmark’s largest power station has replaced coal with wood chips and straw.
EnergyNest offers a solution not just during the transition to fully renewable electricity but will also remain an integral part of future sustainable power systems: ultra-low cost and directly integrated into the steam cycle. Only plants with the ability to rapidly adjust power output to follow variable renewable energy will matter in the future. Due to their low marginal cost and zero emissions, wind- and solar energy are bringing conventional power plants out of their comfort zone – from traditional, rigid “baseload beasts” to peaker plants. This implies more frequent starts/stops, cycling and operation at minimum power output. It also implies more stringent requirements for ancillary services.
Thermal power plants such as concentrating solar power (CSP), biomass and electricity from waste (EfW) have an important role to play in the full transformation from fossil to renewable electricity. This is because very few alternatives can provide security of supply. Thermal power plants maintain grid stability and provide power when the wind is not blowing and the sun is not shining, ensuring that the lights are always on.