Aberdeen subsea energy storage company EC-OG is planning to create up to 40 new jobs in the coming year after securing £1.6 million backing.
The funding has been provided by an investment consortium led by Scottish venture capital firm Par Equity.
EC-OG, which is based at Aberdeen Innovation Park in Bridge of Don, said the cash injection would enable it to boost manufacturing capability for its Halo modular and scalable battery storage system.
Designed to operate in demanding subsea conditions, Halo removes the need for undersea cables to provide a reliable, uninterrupted power supply at what EC-OG says is a “fraction of the cost of alternatives”.
EC-OG, which was set up in Aberdeen in 2013, has spent more than three years working with prospective customers on the design and development of the system.
The firm’s managing director, Richard Knox, said: “This investment comes at a perfect time for EC-OG as we prepare for widespread commercialisation.
“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.”
The investment in the Aberdeen firm is the first Par Equity has made since its recent partnership with the British Investment Bank.
Advisers on the deal included Harper Macleod, Simmons Energy, Stronachs, Philip Hare Associates, Burness Paull, Macroberts and Johnston Carmichael.
The funds for the deal to back EC-OG’s growth plans were allocated as part of the Regional Angel Programme.
The £75 million scheme supports technology firms across Scotland, the north of England and Northern Ireland.
It is designed to provide early stage capital to smaller businesses with high growth potential.
Par Equity, which specialises in investing in innovative technology companies, was joined by existing investors Orchard Venture Capital and the 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.
Par Equity managing partner Paul Nunn said: “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.”
Par Equity’s portfolio includes Current Health, an Edinburgh-based remote patient monitoring platform; BrainwaveBank, of Belfast, which has created a headset device for EEG brain scanning that measures mechanisms underpinning neurological disorders and Middlesbrough cleantech company NPT.
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