Ground-breaking renewable company secures €26.5m for growth plans to drive down cost of energy
Dutch renewable energy company 2-B Energy has secured an investment package of €26.5 million to help commercialise its cutting-edge offshore wind technology in a bid to significantly drive down the cost of offshore wind.
The funding consortium comprises a unique collaborative group of multi-national private and public sector partners, including 2-B’s current majority shareholder and lead investor Truffle Capital; and minority partners PPM Oost, Shell, Rabobank, AgentschapNL, the UK Government’s Department of Energy and Climate Change and Scottish Enterprise via the Scottish Investment Bank’s Renewable Energy Investment Fund.
The funding package will allow the company to grow its business plan both in the Netherlands where a single onshore unit will be constructed and tested by 2015, and accelerate the company’s growth in Scotland, where two full scale units will be tested just off the coast of Methil in Fife.
Scottish Energy Minister, Fergus Ewing welcomed the company’s commitment to drive forward its business plan in Scotland. He said: "This announcement is testimony to Scotland being at the forefront of offshore wind research and development, with 2B Energy aiming to join Siemens and Samsung in the coming years and test their prototype in the Firth of Forth.
“With facilities such as the Offshore Renewable Energy Catapult in Glasgow, the test facilities at Hunterston, Methil and the EOWDC, Scotland offers the facilities and expertise as the industry plots a pathway to reducing the cost of offshore wind and developing this exciting new industry which can deliver jobs and investment, help reduce the carbon emissions from the energy sector, and help keep the lights on across the UK at a time of a tightening gap between electricity supply and demand.
“The support of £2.75 million from the Scottish Investment Bank’s Renewable Energy Investment Fund to 2-B Energy is a key part of helping take forward this development.
“This added to economic benefit and job creation opportunity across the country is a positive sign of successful collaborative approach.”
Focused on lowering risk and the cost of energy (COE), the revolutionary new technology platform is tailored and adapted specifically for offshore application and provides a new outlook for greater COE savings as well as providing better risk profile for its owners. The simplified design builds a new lifetime approach by reducing the number of components which paves the way for significantly lower operation and maintenance costs.
The 2-B wind plant size complements the state-of-the-art 6 MW turbine class and has a rotor diameter of 140 metres, but distinguishes itself from other turbines with its two bladed downwind rotor on its full lattice structure that anchors to the seabed. The design also introduces full helicopter landing access for the first time.
Mikael Jakobsson, chief operating officer for 2-B Energy, said: "There is clearly a need for greater COE reduction if offshore wind is to become sustainable. Our state-of-the-art design has potential to be a significant contributor in reaching this goal and with this new injection of funding we will be able to really drive forward our ambitious business plans both in the Netherlands and in Scotland.
“We’ve received fantastic support from the public sector in the Netherlands, UK and Scotland through UKTI in the Hague and Scottish Enterprise – this support, coupled with the backing of major financial and industrial institutions is vital in helping us drive forward our exciting venture. “
Jean-François FOURT, General Partner, Truffle Capital, said:“As a historical shareholder in 2B, we are very excited with this new phase in the company’s development with such a multinational group of shareholders. We are looking forward to working with our existing and new partners and management on building this innovative demonstrator that will surely disrupt the offshore wind market.”
Lena Wilson, chief executive of Scottish Enterprise, which is supporting the venture with £2.75 million from its Scottish Investment Bank’s Renewable Energy Investment Fund, said: “We’ve worked closely with 2-B Energy in recent years to support the development of this exciting next generation offshore wind technology. This latest investment of Renewable Energy Infrastructure Funding through our Scottish Investment Bank will help 2-B reach a key step of full scale test and demonstration of its device which has the potential to play an important part in Scotland's renewable future and create a possible step-change in future reduction of power generation cost."
Sir Geoffrey Adams, British Ambassador to the Netherlands said, “We congratulate 2-B Energy on today’s announcement and, in particular, on their success in raising capital from the UK’s Department of Energy & Climate Change and from the Renewable Energy Investment Fund managed by the Scottish Investment Bank. Recognising the pioneering work of the company’s founders, the British Embassy in The Hague first engaged with 2-B Energy almost 4 years ago. Since then the UK Government has been pleased to provide sustained support to help the company leverage the massive opportunities for the development and deployment of this cutting edge technology in the world’s largest offshore wind market”.
Michael Boyd, Head of Investment at UK Trade and Investment, said, “I am delighted to welcome this important investment by 2-B Energy into Scotland and that UKTI has been able to help to make this happen. The company’s decision to choose the UK to invest in is indicative of the strength of the UK renewables industry and helps to keep the UK at the cutting edge of developing innovative and cheaper ways to generate clean energy."
About 2-B Energy - 2-B Energy was formed in 2007 by its founders Herbert Peels and Mikael Jakobsson. The team consists of experienced individuals from the wind industry comprising engineering, project development, supply chain management and commercial management. 2-B Energy is based in Hengelo, The Netherlands with subsidiaries in UK and Germany. www.2-benergy.com/
About Truffle Capital – Truffle Capital is an independent venture capital firm investing in Europe. Established in 2001 and with over €550 million under management and advisory as of the 31st of December 2012, Truffle Capital is an important and independent European private equity firm, specialized in investments in spin-offs from companies active in the Energy, Information Technology and Life Sciences sectors. www.truffle.com/
About Scottish Enterprise/Renewable Energy Investment Fund (REIF) – REIF was launched in October 2012 to promote the use of energy from specific renewable sources and drive further investment into key areas of Scotland’s renewables industry. £103 million of ring fenced funding is available to provide commercially priced loans, equity investments and guarantees, REIF will consider projects that support the delivery of energy from a renewable source or represent an innovative renewable energy technology. REIF is delivered by the Scottish Investment Bank – the investment arm of Scottish Enterprise – on behalf of the Scottish Government and its Enterprise Agencies. www.scottish-enterprise.com/
About DECC - The Department of Energy and Climate Change works to make sure the UK has secure, clean, affordable energy supplies and promote international action to mitigate climate change. DECC is supporting 2-B Energy with grant funding from its Offshore Component Technologies Development and Demonstration Scheme. The aim of this Scheme is to enable and promote the development of innovative technologies that can reduce the cost of offshore wind energy and support economic growth.
About Shell – We are a global group of energy and petrochemicals companies with around 92,000 employees in more than 70 countries and territories. We use advanced technologies and take an innovative approach to help build a sustainable energy future. www.shell.com/
About Rabobank – The Rabobank Group is one of the world’s most leading, sound and sustainable financial institutions. With our roots in the Netherlands, the Rabobank Group has grown in recent decades into an international financial services provider that has activities in the field of banking, asset management, leasing, insurance and real estate. www.rabobank.com/en/group/index.html
About AgentschapNL – From 2014 ‘Agentschap NL’, became the Netherlands Enterprise Agency (RVO.nl). Netherlands Enterprise Agency is part of the Ministry of Economic Affairs and is the result of a merger between Agency NL and the Dienst Regelingen. Netherlands Enterprise Agency encourages entrepreneurs in sustainable, agrarian, innovative and international business. It helps with grants, finding business partners, know-how and compliance with laws and regulations. The aim is to improve opportunities for entrepreneurs and strengthen their position. The Agency works at the instigation of ministries and the European Union. http://english.rvo.nl/
About PPM Oost - Participatiemaatschappij Oost Nederland NV (PPM Oost) invests government funds in promising companies that profile themselves as trendsetters or leaders of the regional economy, especially in Life Sciences & Health, Agro-Food, Manufacturing Industry, High-Tech Systems & Materials, and Energy & Environmental Technology. PPM Oost has invested in over 160 companies with a total fund size of more than € 239 million under management. http://www.ppmoost.nl/page/ppm-oost-english
About the British Embassy in The Hague - The Embassy is responsible for achieving the UK government’s policy goals in the Netherlands, as well as services that support the British economy. Our UKTI team helps British companies increase their competitiveness through trade in the Netherlands. The team also offers professional and personalised assistance to help companies in the Netherlands locate and expand in the UK.
About UK TI’s Global Entrepreneur Programme (GEP) - Funded by UK Trade and Investment, GEP helps exceptional entrepreneurs and early stage technology companies from all over the world to globalise their businesses from a UK hub. It does this by harnessing the skills, experience and networks of its team of internationally successful entrepreneurs who deliver both strategic and practical “in-your-shoes” insights and support. The GEP has helped more than 300 entrepreneurs and early-stage technology companies to establish in the UK, with over 200 of these landing since 2009.