Today, next-generation electricity supplier Reel announced a €5M Seed investment led by Transition, with participation from existing shareholders.
The startup offers an alternative to existing renewable energy certificates, which it asserts overestimate corporate CO2 reduction efforts.
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 Google and Microsoft.
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 to triple its renewable energy capacity by 20306, Reel's technology aims to catalyse the corporate sector's contribution to this goal.
According to Reel CEO and co-founder 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."
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.
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."
The Copenhagen-based energy tech company will use the investment to scale its transformative model for B2B renewable electricity supply across Europe.
Lead image: Reel. Photo: uncredited.