The Scottish National Investment Bank (Snib) has sunk £6.6 million into Verlume, the Aberdeen company focused on offshore battery storage technology.
Verlume chief executive Richard Knox hailed the investment as an “enormous step forward” for the firm.
An additional £600,000 has been raised via existing investors in the business, taking the total new cash injection to £7.2m.
Verlume’s flagship product Halo is a multi-use subsea battery storage system which reserves power generated from intermittent renewable energy sources like wind power.
The cutting-edge technology is said to significantly increase energy production efficiency by storing power and releasing it when required.
Verlume has identified offshore wind as a significant opportunity for growth.
As well as being able to increase overall energy output, Halo’s smart battery technology can also be used as a charging point for servicing vessels, sensor equipment and autonomous subsea vehicles.
Floating wind farm market potential
This means it can help reduce any carbon emissions associated with servicing and maintaining fixed and offshore floating wind farms.
Welcoming the bumper cash boost for the firm, Mr Knox said: “This is an enormous step forward as it will provide the funds necessary to execute significantly larger projects, which will in turn, grow the strength and diversity of our team.
“In the year that we are celebrating 10 years in business, the support from the Scottish National Investment Bank will allow us to continue to invest in our people, our technology and operational capabilities to deliver on our vision of being a global company at the forefront of the energy transition.”
Our latest investment of £6.6m for clean energy pioneers, @verlume_world will see them boost expansion plans, enabling them to grow, attract new talent and play a crucial role in the offshore wind supply chain.
— The Scottish National Investment Bank (@thebankscot) April 24, 2023
Snib investment director Robin Tayal said: “Verlume has been at the forefront of energy transition since the company’s inception in 2013.
“The bank’s backing will allow them to scale-up and further transfer its considerable skills within the subsea sector into marine renewable energy.”
Mr Tayal added: “The investment further demonstrates our belief the north-east of Scotland can become a global power house in energy transition.
“Verlume will now be able to grow, attract new talent and play a crucial role in the Scottish, UK and international offshore wind supply chain.”
Snib, wholly owned by the Scottish Government, was set up to invest in business and projects to deliver long term, patient debt or equity investment “where the private market is failing to provide the support businesses and projects require to grow”.
The £600,00- fundraising among investors was managed by Edinburgh-based venture capital firm Par Equity.
Verlume was founded by Mr Knox and former engineering director Rob Cowman in 2013 as EC-OG – which stood for East Coast Oil and Gas.
The company received £1.4m of Scottish Government/Scottish Enterprise funding during its start-up phase.