Saturday, February 24, 2024
HomeFunding Norway-based Scatec Secures USD102m Capital Round Funding

[Funding alert] Norway-based Scatec Secures USD102m Capital Round Funding

Norway-based Scatec secures USD102m capital round funding. CFM is a leading climate-centric blended finance fund manager backed by FMO, the Dutch Development Bank, and Sanlam Infraworks, part of the Sanlam Group of South Africa.

Norway-based Scatec secures USD102m capital round funding. CFM is a leading climate-centric blended finance fund manager backed by FMO, the Dutch Development Bank, and Sanlam Infraworks, part of the Sanlam Group of South Africa.

The company invested in Release via its Climate Investor One (CIO) fund; a blended finance vehicle focused on renewable energy infrastructure in emerging markets. As previously communicated, CFM will contribute USD 55 million in equity for a 32% stake in Release.

Read also – UK-based Globacap Secures $21Million Series B Round Funding

Scatec will retain the majority shareholding of 68%. CFM will also provide shareholder loans totalling USD 47 million, part of which will be on concessional terms.

Scatec CEO, Terje Pilskog said, “We welcome Climate Fund Managers as a strategic partner to fuel the solid growth journey of the Release platform. With this collaboration, we are not only raising funds; we are sharing the future of renewable energy solutions. Release is offering a unique solution in a rapidly growing market segment that requires a different business model than Scatec’s larger scale project business,“We are excited to reach this key strategic milestone for Release. It is testimony to Release’s unique business model and Scatec’s ability to attract top climate-oriented fund managers on a mission to invest in value accretive projects in emerging economies.”

Release represents Scatec’s innovative approach to distributed generation solar PV and Battery Energy Storage Systems (BESS) for projects beginning from 5MWp blocks, matching a need for delivering simple and on-demand renewable energy solutions. This modular solution comprises pre-assembled and containerised movable trackers and storage units.

Read also –  Amsterdam-based Climate Tech Startup Overstory Secures $14M Series A Round Funding

Release is experiencing good traction in the market, particularly towards African utilities. It has projects in operation and under construction in Cameroon, South-Africa, Mexico, and South-Sudan with a total capacity of 47 MW solar PV and 20 MWh of battery storage and has additional contracts for 35 MW solar PV and 20 MWh of storage in Chad.

In addition to maturing its advanced pipeline. Release intends to replicate its rapid deployment model to address shortfalls in local grid power supplies throughout the region.

Climate Fund Manager’s Darron Johnson, Head of Africa Investments said,“Our blended finance model facilitated the integration of impact finance into the deal structure, which Release will be able to leverage to improve its cost structure for its battery and grid connection solutions, allowing Release to offer even more competitive pricing and better value to its clients. We are delighted to support the Release team as they roll-out their critical climate technology across Africa, helping significantly reduce the emissions of the mining and utility sectors,”.

About Scatec

As a leading manufacturer of renewable energy solutions, Scatec is hastening emerging markets’ access to clean, inexpensive electricity. As a long-term participant, we develop, build, own, and run renewable energy facilities, currently developing and building 4.6 GW of power across four continents.

Read also – Madrid-based Galeneo Health Secures €1 million in Funding

Driven by a shared vision of “Improving our Future,” our 700 passionate staff and partners are dedicated to helping us expand our capacity for renewable energy.

- Advertisement -
RELATED ARTICLES
- Advertisment -

Most Popular