Reel secures €5 million seed funding to accelerate Europe’s renewable energy transition
- Lead investor, Transition, and existing shareholders, including UVC Partners and The Footprint Firm, deploy €5 million in latest seed funding round.
- Investment will be used to scale operations and accelerate international expansion of unique, tech-driven B2B electricity supply model that ties companies’ electricity purchase to the construction of new solar and wind parks.
- Reel is building Europe’s leading B2B electricity supplier, matching electricity supply and demand to finance the build-out of renewable energy.
Copenhagen, 18th January 2024 - Next-generation electricity supplier Reel announces €5 million investment led by Transition with participation from existing shareholders. The Copenhagen-based energy tech company will use the investment to scale its transformative model for B2B renewable electricity supply across Europe.
The seed round is led by Transition, a venture capital fund investing exclusively in companies accelerating the climate transition, with participation from existing investors UVC Partners, The Footprint Firm, and a group of energy specialists and successful founders including the Chief Project Development Officer of Climeworks, Daniel Nathan, and the Co-founder of Netlify, Christian Bach.
Reel unlocks impactful electricity for companies
Reel believes that changing the way electricity is bought, used, and reported by companies needs to be front and center in the fight against climate change. Electricity is one of the main sources of CO₂ emissions globally1, with the commercial and industrial sectors accounting for two-thirds of total global electricity consumption2.
Reel’s solution is an important alternative to the conventional way companies purchase renewable energy: i.e., Guarantees of Origin or Renewable Energy Certificates. These certificates are criticized for not leading to actual CO₂ reductions3, despite companies using them to claim that they are consuming carbon-free electricity. Jon Sigvert, CEO and Co-founder of Reel, notes that: "The pervasiveness of flawed renewable energy certificates means that corporate CO₂ reduction efforts are greatly overestimated, further accentuating our risk of falling short of the Paris Agreement. In addition, conventional contracts are commercially unattractive as companies pay extra for the certificates. Reel’s technology solves for all of these issues, and allows all companies - big and small - to help accelerate the renewable energy transition."
Reel’s unique technology transforms traditional Power Purchase Agreements (a type of electricity contract) into an accessible model that allows all companies to achieve carbon-free energy consumption every hour of every day, an approach already being used by larger players like Google4 and Microsoft5.
Disrupting a legacy industry to accelerate the energy transition
Reel is disrupting a legacy industry that has seen little innovation in recent decades. Reel’s innovative PPAs mean that every company’s electricity contract helps build a new solar or wind park. As Europe plans for a tripling of renewable energy capacity by 20306, Reel’s technology aims to catalyse the corporate sector’s contribution to this goal. According to Jon Sigvert, companies’ renewable energy intentions are already present but need to be turned into actual CO₂ reductions: "Companies are increasingly aware of their carbon footprint7 and are implementing measures to take responsibility for their impact on the climate and the electricity they consume. This is a promising development, but to effectively solve the climate crisis in time, these intentions need to be converted into actual CO₂ reductions. And that is exactly what we help companies accomplish."
As noted by Peter Pallishøj, CEO of Baettr and a customer of Reel, the company enables ambitious corporate action on climate change by combining climate impact with financial benefits: "Signing a PPA with Reel means that we can actually reduce our emissions and positively impact the climate. Besides driving the uptake of renewable energy, we now have a strategy to deal with the volatility in electricity prices. Our PPA with Reel gives us an effective and long-term fixed-price solution that allows us to manage this risk effectively, while addressing our sustainability goals. We literally could not get this win-win scenario anywhere else than with Reel."
Mona Alsubaei, Partner at Transition and board member at Reel adds: "The need for solutions that accelerate the energy transition while ensuring financial certainty for companies has never been more urgent. Reel changes the way companies purchase electricity. We are excited to partner with Reel to support the transition to truly green and renewable energy. We are impressed by the team's ability, execution to date, and customer traction. With this significant funding round, Reel will be in a prime position to conquer and expand to the European PPA market and beyond."
Alexander Kiltz, Principal at UVC Partners and board member at Reel says: "Since leading Reel's pre-seed round, we have witnessed the team demonstrating its ability to execute an elaborate business model deeply embedded into the electricity value chain. Reel launched as a certified electricity provider and signed multiple PPAs by winning some of Denmark's leading companies as customers and working with multiple renewable energy developers in Denmark and beyond. We look forward to the next steps in Reel's journey by launching additional products and expanding into further geographies."
A successful year transforming electricity procurement in Denmark
With new renewable energy projects already slated for 2024, Reel is allowing all companies, regardless of size, to drive the energy transition forward and access fixed-cost electricity.
David Helgason, Co-founder & Partner at Transition notes: "Reel combines climate impact and direct cost savings and predictability. Reel’s solution is a breath of fresh air as it offers an avenue for companies to spearhead the energy transition in an easy, genuine, and financially attractive way."
Now, Reel will kick off a comprehensive growth plan aimed at expanding its product offering and introducing its unique electricity procurement model to carbon-intensive energy markets across Europe. This will include growing its team, seeking out exceptional talent worldwide in the fields of tech, energy, and commercial & operations.
About Reel
Reel is the next-generation electricity supplier, creating a new way for companies to buy electricity that accelerates the renewable energy transition.
With Reel, all companies can enter into Power Purchase Agreements (PPAs). These electricity contracts not only offer fixed-price electricity for greater financial stability but also actively reduce CO₂ emissions by adding new renewable energy to the grid. Backed by Europe's leading venture and climate-focused investors, industry experts, and successful founders who share our vision of a world powered by renewables, Reel is poised for international impact.
Our dedicated team of energy experts, climate scientists, and business strategists is committed to enabling companies to create new renewable energy, decrease their emissions, and contribute to the decarbonization of electricity grids. Together, we are creating a world that runs 100% on renewables.
About Transition
Transition is a London-based Seed and Series A venture capital firm that invests in companies making the climate transition a reality. With companies like Watershed and Waterplan in their portfolio, Transition invests in companies at the helm of climate impact across sectors. Transition’s team combines category-defining founders, top-tier investors, proven climate leaders, trailblazing scientists, and policy shapers working towards a single mission: building an abundant and resilient society that can thrive within our finite planet.
About UVC Partners
UVC Partners is a Munich- and Berlin-based early-stage venture capital firm that invests in European B2B startups in the areas of enterprise software, industrial technologies, and mobility. The fund typically invests between €0.5M - 10M initially and up to €30M in total per company. Portfolio companies benefit from the extensive investment and exit experience of the management team as well as from the close cooperation with UnternehmerTUM, Europe’s leading innovation, and business creation center. With over 300 employees and more than 100 industry partners, UnternehmerTUM can draw from many years of experience in establishing young companies. This cooperation enables UVC Partners to offer startups unique access to talent, industry customers, and other financial partners.
About The Footprint Firm
The Footprint Firm is an advisory and investment company with a sole focus on sustainability. They work together with clients for climate-positive innovations and sustainable solutions and make connections between companies, science, academia, government institutions, start-ups and capital. The Footprint Firm invests 100% of its profits in sustainable start-ups, working closely with its investments to help them realise their impact potential.
Press contacts:
Reel: Jon Sigvert / CEO and Co-founder / jon@reel.energy / +45 51 52 83 19
UVC Partners: Maria Poursaiadi / Head of PR / maria.poursaiadi@uvcpartners.com
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