Next-generation electricity supplier Reel has announced a €5 million investment led by Transition, a venture capital fund that invests exclusively in companies accelerating the climate transition, with participation from existing investors UVC Partners and The Footprint Firm, as well as a group of energy experts and successful founders including Daniel Nathan, Chief Project Development Officer at Climeworks, and Christian Bach, co-founder of Netlify.
The Copenhagen-based energy technology company will use the investment to scale its transformational model of B2B renewable electricity supply across Europe. Over the past year, Reel has rapidly grown its clientele consisting of large, industry-leading customers. With new renewable energy projects scheduled for 2024, Reel enables all businesses, regardless of size, to drive the energy transition and access fixed-tariff electricity.
Reel’s solution is an important alternative to traditional ways for companies to purchase renewable energy – namely, guarantees of origin and renewable energy certificates, which are used by companies to claim they are consuming carbon-free electricity but have been criticized for not translating into actual CO2 reductions.
Jon Sigvert, CEO and co-founder of Reel, adds: “The prevalence of flawed renewable energy certificates causes companies to overestimate their CO2 reduction efforts, further increasing the risk of failing to meet the Paris Agreement. What’s more, traditional contracts make them commercially unattractive, as companies pay extra for certificates. Reel’s technology solves all of these problems, enabling all companies, big and small, to accelerate the transition to renewable energy.”
David Helgason, co-founder and partner at Transition, said: “Reel combines climate impact with direct cost savings and predictability. Reel’s solution is groundbreaking because it gives companies the means to lead the energy transition in a way that is simple, honest and economically attractive.”
Founded in 2020, Reel is embarking on a comprehensive growth plan aimed at expanding its product portfolio and introducing its unique power procurement model to carbon-intensive energy markets across Europe, including expanding its team and tapping top talent across technology, energy, commercial and operational sectors around the world.
Alexander Kiltz, Principal at UVC Partners and member of Reel’s Board of Directors, commented: “Since leading Reel’s pre-seed round, we have witnessed the team demonstrate its ability to execute on a sophisticated business model that is deeply embedded in the electricity value chain. Reel started as a certified electricity provider, gained major Danish companies as customers, and signed multiple PPAs with several renewable energy developers in Denmark and abroad. We look forward to watching Reel take its next steps as it launches further products and expands into additional geographies.”
