European countries are doubling down on their efforts for creating a sustainable and carbon-neutral economy. According to the EEA, “The European energy system is undergoing rapid changes to set the EU economy on a low-carbon and resource-efficient path. Renewable energy is instrumental to this transformation. EU efforts to double the share of renewable energy in its consumption have paid off, having reduced significantly the amount of fossil fuels used and their associated greenhouse gas emissions.”
A number of European startups are also playing their part in helping the EU achieve a sustainable future. UK-based battery storage and electric vehicle operator Zenobe Energy is one such example. It recently raised £150M (approx €167.6M) in a fresh round of funding from Infracapital, the infrastructure equity investment arm of investment manager M&G.
About Zenobe Energy
Founded in 2017 by Steven Meersman, James Basden, and Nicholas Beatty, Zenobe Energy provides intelligent flexible power solutions to commercial electric vehicles (EV) fleet operators, utility & infrastructure, and industrial & commercial businesses all the while maintaining the environmental benefits.
The company’s battery storage services help clients manage power more effectively so they can lower costs, improve resilience, and reduce their environmental impact.
Besides, the company also operates and owns its battery storage with 170MW (MegaWatt) of contracted storage assets, about 20% market share of the EV bus sector, its own proprietary software, and a large portfolio of projects still in process.
How will the fresh funds be utilised?
Combined with debt facilities, Zenobe estimates that this will allow it to deploy around £450M (approx €502.6M) in these sectors, further accelerating the use of batteries to support renewable power generation and electrification of vehicle fleets in the UK and overseas.
With this fresh investment Zenobe aims to help the transport and energy sectors to address key challenges associated with climate change. The raised capital will also help support the growth of Zenobe’s grid-scale battery services and electric vehicle, as well as charging infrastructure services.
Moreover, the funding will enable Zenobe to support customers with at least 500 MWh of additional grid-connected batteries, and up to a further 1,000 electric buses or vehicles and associated infrastructure software systems over the next 18 to 24 months.
Focus on innovation and development
The proprietary software and hardware systems help Zenobe to integrate different assets and operating models to provide lower costs and enhanced resilience to its customers. Also, the company claims to improve returns for customers who own their own generation assets.
The company has 170MW of grid-scale batteries in operation or construction across the UK, including the largest BYD and Tesla installations in the UK. It also owns batteries providing flexible power solutions to bus operators and have a pipeline of projects in the UK and abroad.
Nicholas Beatty, the founder of Zenobe Energy, says, “By driving the adoption of batteries across the transport, infrastructure and utility sectors, we will help accelerate the uptake of renewable energy, ultimately enabling the transition to a green energy system, both in the UK and internationally.”
As per the company, in the transport sector, it supports over 100 electric buses and is in talks with operators to support another 250 EVs by summer 2021.
The company also claims to provide end-to-end services to the EV fleet operators including the design, installation, financing, and operation of electric charging infrastructure in the depot. Besides, it also offers the financing and optional replacement of the battery in the EV, as well as of its non-battery components.
Zenobe’s previous fundings
To support its EV fleet business, the company has previously raised investment from:
- NatWest Group (£20M – approx €22.3M) in June 2020
- From JERA Storage BV, £25M (approx €27.9M) – first non-recourse debt facility in 2019
- From Santander Group, £25M (approx €27.9M) – first non-recourse debt facility in 2019
- £40M (approx €44.6M) of equity from private investors and infrastructure investor Tiger Infrastructure Partners LP in 2017
Image Credit: Zenobe Energy