Electrochaea

Electrochaea closes €36M financing round

Electrochaea's Series D is completed with an additional € 14.9M investment from the EIC Fund

Munich, 07 January 2022

Power-to-gas company Electrochaea announced today a € 14.9M equity investment from the European Innovation Council (EIC) Fund. This investment completes the €36 million Series D round, led by the energy technology company Baker Hughes and existing partners MVP, Storengy (an ENGIE subsidiary), btov, KfW, Energie 360°, Caliza, and Focus First. The purpose of this investment round is to accelerate the scale up and commercialization of Electrochaea’s technology that produces a replacement for fossil natural gas while storing renewable energy and reusing CO2.

The equity funds permit Electrochaea to catalyze the construction of a commercial European project, through direct investment of funds, and to realize the engineering work completed under the €2.5 million award that Electrochaea received in August 2020 from the “EIC Accelerator” program, a part of the EU research and innovation program “Horizon 2020”. The EIC equity investments are made to scale-up game-changing innovative technologies that promote Europe’s goal to reach net-zero greenhouse gas emissions by 2050.

Electrochaea’s power-to-gas biomethanation technology produces grid-quality renewable methane using CO2 and renewable hydrogen. Renewable methane can replace any use of fossil natural gas, thereby significantly reducing greenhouse gas (GHG) emissions, utilizing investment in existing gas distribution and storage infrastructure, and contributing to the transition to a clean energy economy.

“Equity support from the EIC Fund will have a significant impact on Electrochaea’s ability to deliver renewable gas to customers throughout Europe and the world,” said Mich Hein, CEO of Electrochaea. “Technologies that can deliver on net-zero greenhouse emission goals need to be scaled up and brought to the market without delay. Electrochaea´s biomethanation technology, which has been proven in two demonstration plants, one in Denmark and one in Switzerland, is an ideal solution to replace fossil gas with fully renewable gas and to participate in the energy transition.”

“Electrochaea is a great example of how the EIC Fund is supporting the climate tech innovators to bring their technologies to the market and help achieving the Green deal objectives,” added Martin Bruncko, member of the EIC Fund Investment Committee. “This equity financing will support Electrochaea to successfully produce at industrial scale renewable methane that replaces natural gas and can be stored and transported in the existing gas grid.”

About Electrochaea | www.electrochaea.com

Electrochaea delivers a technology to produce renewable methane, a fuel that replaces natural gas, and can be stored and transported in the existing gas grid. Electrochaea’s patented process combats climate change by utilizing CO2, producing a renewable fuel, and providing a solution for long-term storage of intermittent renewable energy. The company is planning to deploy its technology with partners to produce more than 15 billion cubic feet per year of renewable bio-synthetic natural gas by 2025. Industrial-scale pilot plants have operated in the U.S., Switzerland, and Denmark. Electrochaea is headquartered in Munich, Germany, with subsidiaries in Denmark and the U.S.


Kebony

Kebony raises €30M in funding

Kebony raises EUR 30 million in funding round led by Jolt Capital and Lightrock

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  • Kebony’s patented wood modification technology enhances the qualities of sustainable softwood, giving it the characteristics and usability of premium hardwood
  • Kebony enables the production of sustainable and environmentally friendly wood at low cost, which has the potential to transform the construction industry
  • Kebony has demonstrated strong year-on-year growth, and will use the funding to expand and scale across the European and US markets

Oslo, 27 October 2021

Kebony, the leading environmentally friendly wood modification technology company, today announces a successful EUR 30 million funding round led by Jolt Capital and Lightrock. Kebony’s vision is to reduce CO2 emissions and tropical deforestation using its patented wood modification techniques, which produce superior wood in an environmentally friendly way.

The key disruptive trends in the construction industry are expressed by the need for greener, safer and better products, as the standard construction materials concrete and steel are large emitters of CO2 globally. In addition, the current large market for tropical wood is set to be replaced by enhanced wood to protect bio-diversity and reduce tropical deforestation.

The Kebony® technology permanently transforms sustainable wood species such as pine into Kebony wood with features that are comparable, and in some cases superior, to those of precious tropical hardwoods. This unique environmentally friendly process is also a superior alternative to traditional wood treatment based on impregnation with wood preservatives.

Kebony’s EUR 30 million financing round is led by Jolt Capital and Lightrock, who will join longstanding Kebony shareholders such as Goran, MVP, FPIM, PMV and Investinor, of which the latter two will remain represented on the Board of Directors. The capital injection will expand and accelerate Kebony’s growth initiatives in core markets in Europe and the US. The funding will enable Kebony to further penetrate a EUR 3 billion market, and leverage the underlying megatrends of producing sustainable materials for the residential and non-residential construction industries.

“Kebony produces the most beautiful and ecological wood on the market, with a superior quality that is both environmentally friendly and cost-effective. To further leverage opportunities within the enhanced wood technology industry, we are proud to announce Jolt Capital and Lightrock as new investors in Kebony,“ says Norman Willemsen, Chief Executive Officer of Kebony.

“At Jolt Capital we have a strong interest in material science companies which leverage their patented technologies to offer sustainable products. With over 20 years of R&D in woodtech and a well-proven process that gives cultivated soft woods the desirable properties of hard tropical ones, Kebony is one of them. We are thrilled to finance the expansion of their European production facilities to both support the strong market growth and offer an alternative to rainforests deforestation,” says Antoine Trannoy, Managing Partner at Jolt Capital.

“Kebony is perfectly positioned in the race for a decarbonized world with an ambition to be the leader within wood modification technologies. We look forward to supporting the company to implement its growth strategy and to leverage the significant operational scalability and continue the profitable growth journey,” says Kevin Bone, Partner at Lightrock.

“The new management team has conducted a successful transformation of the company, and with backing of our new high-quality investors providing improved financial flexibility, Kebony can accelerate growth, enhance its technology development roadmap, and explore potential acquisitions. The addition of Didier Roux and Rebekah Braswell to the Board of Directors will strengthen Kebony’s expansion and scalability. Coupled with the company’s unique selling proposition and backed by double-digit growth, we believe Kebony is ideally positioned to unlock the full potential of sustainable and enhanced wood.” says Cornelius Walter, newly appointed Chairman of the Board of Directors.

“Kebony reported a revenue growth of 23% in the first half of 2021, compared to the same period in 2020, with a strong positive EBITDA. The revenues in 2020 had already increased by 26% year-over- year, with a significant EBITDA improvement, driven by the company’s geographical growth strategy in key markets. The finalization of the private placement significantly strengthens Kebony’s financial flexibility and supports the accelerated growth strategy,” says Thomas Vanholme, Chief Financial Officer of Kebony.

“As early investors in Kebony, we were impressed by the technology and the market opportunity that lay in substituting tropical hardwood with a sustainable alternative. We have seen the company through its transition from an early pioneer in the modified wood market to being a market leader in the segment, with demonstrated international growth potential. We are delighted to have Lightrock and Jolt Capital bring momentum to scaling Kebony in the years to come. What better way to make a massive impact on sustainability than stopping logging of precious tropical hardwoods, whilst still providing a long-lasting wood alternative to concrete, plastic and steel?” added Thomas Hoegh, Founder and CEO of Arts Alliance Ventures.

Carnegie AS and Pareto Securities AS have acted as financial advisors to the company.

About Kebony | www.kebony.com

Kebony is a Norwegian company which aims to be the leading wood brand and technology company. Underpinned by proven wood modification technologies, it produces an enhanced wood of a superior quality that is both environmentally friendly and cost-effective.

The company’s headquarters is based in Oslo, while production, research and development and other administrative functions are located in the Skien municipality, south of Oslo. In addition, the Group has a production facility in Antwerp, Belgium. Kebony has subsidiaries in Norway, Denmark and Sweden, sales representatives in Germany, France, UK and the US and a wide distribution network internationally. Shareholders are leading the venture with private equity investors from Belgium, Germany, France, Norway and UK. The company has received numerous awards for its environmentally friendly technology and innovation, including its naming as a World Economic Forum Technology Pioneer.

The Kebony® technology permanently transforms sustainable wood species such as pine into Kebony wood with features that are comparable, and in some cases superior, to those of precious tropical hardwoods. This unique environmentally friendly process is also a superior alternative to traditional wood treatment based on impregnation with biocides (wood preservatives). The company’s patent- protected production processes yield products that deliver major improvements in durability and dimensional stability, at the same time as being highly attractive. The Kebony products are suitable for a multitude of applications and designs – encompassing both indoor and outdoor applications.

Kebony’s purpose and mission is through active innovation, quality thinking and understanding of commercial possibilities; give the world beautiful, long lasting and environmentally friendly wood products. The company will show social responsibility and contribute to improvements of the environment in a way that builds a better future.


EU Innovation Council invests €17.5 Million in Electrochaea’s Power-to-Methane technology

Electrochaea ́s power-to-gas technology receives funding from the European Innovation Council (EIC), confirming that their market-ready innovations make an important contribution to the goals of the European Green Deal and the UN agenda for sustainable development.
Based on biocatalysis, Electrochaea offers a multiple nationally and internationally patented key power-to-gas technology, which cost-effectively recycles CO2 and at the same time produces CO2-neutral methane from excess electrical energy that can be stored and used as required.

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In total, more than 2,000 European companies applied for the “EIC Accelerator” pilot program. Electrochaea is one of only 64 selected start-ups and medium-sized companies supported bythe Councilwith their projects. The EIC Accelerator program is part of the EU research and innovation program”Horizon2020″. It is aimed at entrepreneurs and SMEs that can apply for grants or mixed financing from grants and equity support. Since this year, around €300 million are available for submissions that promote the European Green Deal. Electrochaea fulfils this requirement in three ways: the long-term storage of renewable energy, production of biomethane, and reduction of the carbon footprint by using CO2 emitted by various industrial sources.

“We are proud to be one of the few selected funding recipients of the EIC. For us, this funding commitment is also a crucial strategic statement,” explains Dr. Doris Hafenbradl, CTO of Electrochaea. “In its rationale, the European Innovation Council confirms for the first time and in all clarity that Europe needs sustainable storage solutions for renewable energy sources and that green gas is indispensable for a sustainable, reliable and comprehensive energy supply”.

The EU funds will be used for the so-called scale-up, the development of the technology from existing pilot plants to commercially scaled plants. With the equity investment, Electrochaea will construct a fully operational 10 to 20 MW plant. The outcome is that customers will benefit: by scaling up and building a sample plant, the risk for commercial projects will be minimized and Electrochaea will be able to offer reliable and highly efficient standardized plants. “The additional financial resources will help us to apply the potential of biological methanation even faster on a commercial scale,” says Hafenbradl. “The European Innovation Council explicitly recognizes the expertise, diversity and motivation of our team as important factors in our success story in constructing industrial pilot plants and forming strategic partnerships with key players”.

Harald Beschid (COO), Doris Hafenbradl (CTO and Managing Director) and Birgit Lewandowski (Director Development) of Electrochaea are pleased about the investment of the European Innovation Council and consider it as a strong political signal. (© Electrochaea GmbH, 2020)


GreenCom secures investment by Centrica

Home Energy IoT provider Greencom Networks closes

fundraising round with Centrica Innovations

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GreenCom Networks has successfully closed a significant fundraising round led by international energy and service company Centrica. The current shareholders SET Ventures, Munich Venture Partners and Cosmos were also participating in this round. The funding will be used to finance a further international expansion of GreenCom’s Energy Internet of Things (IoT) platform in the European market.

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