ESFORIN raises €7.5m in Series B to accelerate growth in Europe and combat climate change – led by SEB Greentech Venture Capital
ESSEN/STOCKHOLM May 2023
Europe´s leading provider of automated flexibility algo-trading in short-term power markets, ESFORIN raised €7.5m in Series B funding led by SEB Greentech VC. The round was closed with participation from existing investors – ERAME, SET Ventures, Christoph Ostermann (Green Fortress) and ESFORIN’s founder holding. The capital will be used to accelerate ESFORIN´s European expansion into further markets.
ESFORIN is a trusted service provider of fully automated asset-backed trading of controllable power flexibili-ties on the short-term power markets. The company operates hundreds of customer assets in Germany, Netherlands, Austria, U.K. and has recently started operations in France and Belgium. With more than 1.5 GW of flexibility under active management from assets such as batteries for industry and households, boil-ers, gas turbines, heaters etc., the Essen and Berlin based company more than tripled its turnover to €644 million operating profitable during 2022.
ESFORIN’s innovative approach to power flexibility has already achieved significant success with the com-pany´s advanced algorithms helping customers to optimise their assets on intraday power markets. Their client’s physical flexibility to ramp energy up or down considerably reduces carbon emissions by enabling more renewables into the grid. TÜV Rheinland has certified that the flexibility trading saved 363,267 tons of CO2 in 2022.
ESFORIN has become the market leader in the automated algo-trading of power flexibilities in the short-term markets by providing customers with flexibility-as-a-service that delivers returns from day one without any investments. The volatility of energy prices keeps increasing as more intermittent renewables enter the grid. With the progressive shutdown of conventional large-scale power plants, ESFORIN´s scalable service is well-positioned for extensive growth in Europe.
”Flexibility is the missing link within the energy transition puzzle”, emphasizes Christian Hövelhaus, CEO and founder of ESFORIN. ”Our service ensures grid stability, lowers energy costs, and increases the use of renewables. Furthermore, our customers benefit from a lower carbon footprint. Today, flexibility doesn’t get the attention it deserves, either in business or politics. Thanks to our new partner SEB we have the financial means to expand our flexibility services even faster in Europe and are joining forces to drive what we see as an essential transformation in building a climate-neutral energy future.”
“We are very impressed by what ESFORIN has accomplished and how much value they bring to clients as an integral part of the daily business without any interruption to their processes. Successful algo-trading of over 20 types of assets requires deep know-how from multiple disciplines and something that is unique for the ESFORIN team”, says Markus Hökfelt, Investment Director, SEB Greentech VC. Furthermore, Hökfelt points out: “With our team´s background in energy, and SEB´s long term relationship of financing large industrial players, we view energy flexibility as being the key enabler of a green energy transition. Looking at our portfolio, ESFORIN builds further to one of our core investment themes, ‘the Electrification of Every-thing’. We are thrilled for the opportunity and trust from founders and co-investors to join ESFORIN on the journey to build a new energy system based on renewables”.
ESFORIN´s success highlights the growing demand for innovative and sustainable energy solutions across Europe. As the company continues to expand its reach, it will play a crucial role in accelerating the transition towards a greener, more sustainable energy future.
ESFORIN (Energy Services for Industry) is the leading digital provider of flexibility marketing in power short-term markets. Founded by experienced energy entrepreneurs, the company currently employs over 40 people, has 1.5 GW flexibility under active management and generated profitable revenues of €644 million in 2022. ESFORIN operates a sophisticated automated trading infrastructure for flexibility optimization serving leading industrial and energy-intensive customers, municipal utilities as well as renewable energy and bat-teries. ESFORIN is located in Essen and Berlin and active in Germany, Austria, the Netherlands, the UK, Belgium and France with controllable flexibility as key for the sustainable energy transition. Therefore, the company allows further integration of volatile renewable energies corresponding to 363,267 tons of CO2 reductions in 2022.
About SEB GREENTECH VC
SEB Greentech Venture Capital invests in green technology, focusing on transformative ideas that promise substantial impact in reducing greenhouse gas emissions or in preventing transgression of the planetary boundaries. We invest in hardware, software and technology platform solutions, in sectors ranging from renewable energy, energy storage, water and agricultural technology, circular business models, to waste management. We are particularly searching for teams with a relentless dedication to their mission, and who are ready to scale their business internationally. Our portfolio companies get access to a broad industry and investor network from global leading clients and partners. SEB Greentech VC is part of SEB, a leading northern European financial services group. On 31 March 2023, the Group's total assets amounted to SEK 3,802bn while assets under management totaled SEK 2,221bn. For more information about SEB, visit sebgroup.com.