New Investment Opportunity: Connected Energy
Advanced energy storage solutions
- World-leading proprietary AI technology recycles used EV batteries into renewable energy storage for utility companies
- Provides up to 10 years of power storage, significantly reduces CO2 emissions
- Projects with OEMs including Bentley, BMW, Jaguar, Land Rover, Nissan, Renault
- Initial revenue $1.4M in 2021, projecting $8M in 2022, $39M in 2023
- $20M round led by Caterpillar, investors include ENGIE, Macquarie, Sumitomo
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Dear Josb,
Shifting the world to cleaner energy sources needs better solutions for durable, longer-term electricity storage. Electric vehicles (EVs) play a big role in the move to cleaner energy, but retired EV batteries are becoming a huge waste problem.
OurCrowd is investing in Connected Energy, a British company that addresses both of these problems at once with technology that gives exhausted EV batteries a second life as fixed systems for renewable energy producers. The details in this email are based on information received from, and verified solely by, the company.
The problem
To shift the electric grid off fossil fuels to renewable sources requires improved battery storage to even out the volatile nature of renewable energy. Solar systems only operate when there is daylight, and wind systems need wind. EVs that can be powered by clean energy are an important component of fighting climate change, but after 10 years of use EV batteries do not have enough range for use in vehicles, even though they retain 75-80% of their original capacity. The number of discarded EV batteries is already a major environmental waste problem and will grow exponentially in the future.
The solution
Connected Energy solves both these problems simultaneously. It aggregates together thousands of individual retired EV batteries into a single, optimized battery energy storage system called E-STOR, which extends the useful life of the batteries by up to 10 years, putting them to work as crucial storage capacity for renewable energy systems.
The system also facilitates decarbonization. A study by Lancaster University estimates that every MWh provided by Connected Energy's storage system prevents the release of the equivalent of 1,100 tons of CO2 - equivalent to planting 50 trees.
The company's proprietary Power Control Module software balances the varying loads drawn from each battery, controls the number of inverters required to deliver specific levels of power and can isolate and power down single batteries that are overheating and endangering nearby cells, or that need to be replaced.
Connected Energy is also developing a larger scale infrastructure product called M-STOR that stacks multiple E-STOR modules into a higher capacity system.
Traction
The company partners with EV OEMs. The company's technology can work with any battery, although it does require cooperation from the OEM to connect to their battery management system. The company has contracts in place with Bentley, BMW, Jaguar, Land Rover, Nissan, Renault and other major carmakers.
CE also has paid contracts with city grid operators, EV charging operators, micro-grid control companies and battery recycling companies. Its technology is deployed in 17 locations in Europe and the company has a pipeline of over 100 MWh.
The company's scaled up infrastructure product, M-STOR, is being developed in partnership with ENGIE, Sumitomo Corp., and Duke Energy, with an Innovate UK grant.
Connected Energy had initial revenue of $1.4M in 2021. It projects $8M revenue in 2022, and $39M in 2023.
The round
This $20M Series B round is led by Caterpillar with participation from ENGIE, Macquarie, and Sumitomo. Funds from this round will be used to expand sales of the existing E-STOR product and to further the development of infrastructure scale M-STOR product.
Meet the CEO
We're hosting a webinar/conference call on Monday, March 14th, at 7PM Israel / 12 Noon New York / 9AM San Francisco for investors to meet CEO Matthew Lumsden and learn more about Connected Energy.
Can't make the webinar? Register and we will send you a recording of the call.
The Connected Energy Solution
Connected Energy has two different business models. In the first, the company purchases batteries from the OEMs and deploys E-STOR systems with energy companies. In the second model, the OEMs retain ownership of the batteries, and Connected Energy provides an asset management service.
The system provides renewables optimization, power quality management, and peak shaving, managing the peak demand to prevent grid overload and to flatten the demand curve. Peak shaving also refers to charging batteries when electricity prices are low, such as when the sun is shining, and discharging during the most expensive hours of day to reduce costs.
M-STOR will operate on the second model, and deliver systems with substantial capacity, 40 MWh.
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