EC-OG Set to Accelerate Subsea Clean Energy Growth with Investment from Par Equity
Subsea clean energy specialists EC-OG have received £1.6m from an investment consortium led by Par Equity.
EC-OG will use the funds to support its growth plans, which focus on the exploitation of its innovative 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 demanding subsea environment. By removing the need for undersea power cables, it provides a reliable, uninterrupted power supply, located at the point of use. Halo provides a temporary, permanent or back-up deep sea electrical power solution at a fraction of the cost of alternatives.
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. The £75m programme supports some of the fastest growing technology companies across the North of England, Scotland and Northern Ireland and is designed to provide early stage capital to smaller businesses with high growth potential.
Richard Knox, Managing Director of EC-OG commented:
“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.”
Par Equity, a venture capital firm based in Edinburgh that specialises 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.
Paul Munn, Managing Partner of Par Equity 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.”
EC-OG joins Par’s portfolio of nearly 40 companies, which includes emerging stars such as Current Health, a leading Edinburgh-based remote-patient monitoring platform; BrainwaveBank, the Belfast-based creator of a wearable headset device for EEG brain scanning that measures the mechanisms underpinning neurological disorders and therapies; and NPT, a Middlesbrough-based cleantech company with a patented process to convert non-food plant residue into biofuels and chemicals.
Martin Bell, Managing Director of Orchard Venture Capital added:
“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.”
Advisers on the deal include Harper Macleod, Simmons Energy, Stronachs, Philip Hare Associates, Burness Paull, Macroberts and Johnston Carmichael.
Nick Dalgarno, Managing Director of Simmons Energy, summarised:
“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.”
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About Par Equity
Par Equity is an award-winning venture capital firm, based in Edinburgh, investing in innovative technology companies with high growth potential.
Founded on the principle of equality, fund investors and professional business angels share the same terms and the same rewards across a broad range of opportunities. This investment strategy, fusing the best elements of angel investing with the professionalism and rigour of a traditional venture capital fund, is what Par describes as its Network Effect – a large and engaged investor network with a track record founding, growing and selling companies, who can add value throughout the investment life cycle.
The firm’s evergreen Par EIS fund is available to retail investors who want a hands off exposure to venture capital and EIS, providing them with a diversified portfolio of six to eight software and hardware technology companies, with the potential for significant capital gains.
Par Equity won a hat-trick of awards recognising the firm’s exit from online educator ICS Learn – ‘Best EIS Investment Exit’ at the EIS Association Awards 2019, ‘Exit of the Year’ at the Growth Investor Awards 2018 and ‘Best Exit of the Year’ at Investment Week’s Tax Efficiency Awards 2018. The firm was also a finalist for the Best EIS Investment Manager award at the 2019 Growth Investor Awards.
EC-OG are innovators in subsea, clean energy technologies. Specialising in energy storage and remote power generation, EC-OG provide alternative power delivery systems for offshore applications without reliance on umbilical cables.
Founded in 2013, EC-OG has already received a strong reputation for innovation in the subsea industry. We aim to enable our clients to decarbonise offshore operations by helping to shape the way the industry thinks about the energy transition and clean energy integration into oil & gas infrastructure.
Current industry practice requires expensive umbilical cables for power transmission to remote subsea assets. Our Halo technology offers modular and scalable battery storage, capable of integrating with marine renewable energy systems to create a zero-emission power system at a fraction of the cost of traditional methods of power delivery.
With significant multi-disciplinary expertise in the offshore oil & gas and renewable energy industries, EC-OG are ideally placed to offer our clients independent, specialist advice on clean energy systems for offshore applications.