ESFORIN successfully closes Series B led by SEB Greentech Venture Capital with a €7.5m capital increase to accelerate growth in Europe and tackle climate change
ESSEN/STOCKHOLM May 2023
ESFORIN, Europe's leading provider of automated algo-trading of flexibility on the short-term electricity markets, has received EUR 7.5 million in Series B financing led by SEB Greentech VC. Existing investors ERAME, SET Ventures, Christoph Ostermann (Green Fortress) and the founding holding company of ESFORIN participated in the financing round. The capital will be used to accelerate ESFORIN's European expansion into additional markets.
ESFORIN is the market leader for the fully automated trading of controllable electricity flexibilities on the short-term electricity markets. The company operates hundreds of customer plants in Germany, the Netherlands, Austria and the UK, and has recently started operating in France and Belgium. With more than 1.5 GW of flexibility from actively optimized plants, such as industrial processes, batteries for industry and households, boilers, gas turbines, heating systems, etc., the Essen and Berlin-based company has more than tripled its turnover profitably and generated a turnover of 644 million euros in 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 automated algo-trading of electricity flexibilities on the short-term markets by offering its customers flexibility marketing as a transparent service that enables profit from day one without additional investment. The volatility of energy prices continues to increase as more and more renewable energy is fed into the grid. With the progressive shutdown of large controllable 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 with what ESFORIN has achieved and how much value they provide to clients as an integral part of their day-to-day business without disrupting their processes. Successful algo-trading of over 20 asset types requires in-depth expertise from various disciplines and is unique to the ESFORIN team," says Markus Hökfelt, Investment Director, SEB Greentech VC. Hökfelt also emphasizes: "With our team's background in the energy sector and SEB's long-standing relationship with financing large industrial companies, we see energy flexibility as the key to a green energy transition. In terms of our portfolio, ESFORIN builds on one of our key investment themes, 'electrification'. We are excited about this opportunity to work together and the confidence of the founders and co-investors to accompany ESFORIN on its journey to build a new energy system based on renewables.
ESFORIN's success underlines 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 to a greener, more sustainable energy future.
About ESFORIN
ESFORIN (Energy Services for Industry) is the leading digital provider of flexibility marketing in the short-term electricity markets. Founded by experienced energy entrepreneurs, the company currently employs more than 40 people, has 1.5 GW of flexibility under active management and generated a profitable turnover of EUR 644 million in 2022. ESFORIN operates a highly developed automated trading infrastructure for flexibility optimization for leading industrial and energy-intensive customers, energy suppliers and municipal utilities as well as for renewable energies and batteries. ESFORIN has offices in Essen and Berlin and is active in Germany, Austria, the Netherlands, the UK, Belgium and France with controllable flexibility as the key to a sustainable energy transition. The company enables the further integration of volatile renewable energies, which corresponds to a CO2 reduction of 363,267 tons in 2022.
About SEB GREENTECH VC
SEB Greentech Venture Capital invests in green technologies, focusing on transformative ideas that promise to have a significant impact on reducing greenhouse gas emissions or avoiding overshooting planetary boundaries. We invest in hardware, software and technology platforms in areas such as renewable energy, energy storage, water and agricultural technology, circular business models and waste management. In particular, we look for teams that are relentlessly dedicated to their mission and ready to scale their business internationally. Our portfolio companies gain access to a broad industry and investor network of leading global clients and partners. SEB Greentech VC is part of SEB, a leading Northern European financial services group. As of March 31, 2023, the Group's total assets amounted to SEK 3,802 billion and assets under management to SEK 2,221 billion. For more information about SEB, please visit sebgroup.com.
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Press Contact
Theodora Trah | theodora.trah@esforin.com
