Next-generation electricity supplier Reel announced a €5 million investment 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.
The Copenhagen-based energy tech company will use the investment to scale its transformative model for B2B renewable electricity supply across Europe. In the past year, Reel has experienced rapid customer growth, consisting of large, industry leading customers. With new renewable energy projects already slated for 2024, Reel is allowing all companies, regardless of size, to drive the energy transition forward and access fixed-cost electricity.
Reel’s solution is an important alternative to the conventional way companies purchase renewable energy: i.e., Guarantees of Origin or Renewable Energy Certificates. These certificates are criticized for not leading to actual CO₂ reductions3, despite companies using them to claim that they are consuming carbon-free electricity.
Jon Sigvert, CEO and Co-founder of Reel, added: “The pervasiveness of flawed renewable energy certificates means that corporate CO₂ reduction efforts are greatly overestimated, further accentuating our risk of falling short of the Paris Agreement. In addition, conventional contracts are commercially unattractive as companies pay extra for the certificates. Reel’s technology solves for all of these issues, and allows all companies – big and small – to help accelerate the renewable energy transition.”
David Helgason, Co-founder & Partner at Transition, said: “Reel combines climate impact and direct cost savings and predictability. Reel’s solution is a breath of fresh air as it offers an avenue for companies to spearhead the energy transition in an easy, genuine, and financially attractive way.”
Founded in 2020, Reel will kick off a comprehensive growth plan aimed at expanding its product offering and introducing its unique electricity procurement model to carbon-intensive energy markets across Europe. This will include growing its team, seeking out exceptional talent worldwide in the fields of tech, energy, and commercial & operations.
Alexander Kiltz, Principal at UVC Partners and board member at Reel, commented: “Since leading Reel’s pre-seed round, we have witnessed the team demonstrating its ability to execute an elaborate business model deeply embedded into the electricity value chain. Reel launched as a certified electricity provider and signed multiple PPAs by winning some of Denmark’s leading companies as customers and working with multiple renewable energy developers in Denmark and beyond. We look forward to the next steps in Reel’s journey by launching additional products and expanding into further geographies.”