EC-OG has received £1.6 million from an investment consortium led by Par Equity for the exploitation of its Halo battery storage system designed for subsea applications.
The investment will create up to 40 jobs in Aberdeen over the next 12 months.
Halo is a modular and scalable battery storage system that operates in the subsea environment. By removing the need for undersea power cables, it provides a reliable, uninterrupted power supply, located at the point of use.
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.
“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.”Richard Knox, managing director of EC-OG.
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 exclusive corporate finance adviser to EC-OG throughout the investment process and will continue to support it with future corporate activity.
“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.”Paul Munn, managing partner of Par Equity.
“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.”Martin Bell, managing director of Orchard Venture Capital.
Advisers on the deal include Harper Macleod, Simmons Energy, Stronachs, Philip Hare Associates, Burness Paull, Macroberts and Johnston Carmichael.
“We were pleased to support EC-OG through this round of funding and are delighted to have completed the deal with Par, Orchard and SIB. We believe that the company’s subsea power technologies have an exciting future, particularly through enabling oil and gas operators to address the prevalent industry challenges of clean energy transition, improved cost efficiency and asset life extension. We’re looking forward to continuing to work with EC-OG and its investors as they grow the business.”Nick Dalgarno, managing director of Simmons Energy.