Next-generation electricity supplier Reel has secured €5 million in funding to disrupt Europe’s electricity market. The investment was led by Transition, a venture capital fund focused on companies accelerating the climate transition. Existing investors, including UVC Partners and The Footprint Firm, also participated in the funding round, along with a group of energy specialists and successful founders such as Daniel Nathan, Chief Project Development Officer of Climeworks, and Christian Bach, Co-founder of Netlify.
Reel, a Copenhagen-based energy tech company, plans to utilize the investment to expand its transformative B2B renewable electricity supply model across Europe. Over the past year, Reel has experienced significant customer growth, including large industry-leading companies. With new renewable energy projects in the pipeline for 2024, Reel aims to enable companies of all sizes to contribute to the energy transition and access fixed-cost electricity.
The conventional method for businesses to purchase renewable energy involves using Guarantees of Origin or Renewable Energy Certificates, which have faced criticism for not translating into actual CO₂ reductions. Despite companies utilizing these certificates to claim carbon-free electricity consumption, the credibility of this approach has been called into question.
Jon Sigvert, CEO and Co-founder of Reel, highlighted the negative impact of flawed renewable energy certificates, emphasizing how they overestimate corporate CO₂ reduction efforts and increase the risk of falling short of the Paris Agreement. Sigvert also noted that conventional contracts are financially unattractive due to additional costs associated with the certificates. Reel’s technology aims to address these issues and enable companies, regardless of their size, to play a significant role in accelerating the renewable energy transition.
David Helgason, Co-founder & Partner at Transition, praised Reel’s solution for its ability to combine climate impact with cost savings and predictability. He described Reel’s offering as a refreshing avenue for companies to lead the energy transition in an easy, genuine, and financially attractive manner.
Established in 2020, Reel plans to embark on an extensive growth plan, expanding its product portfolio and introducing its unique electricity procurement model to carbon-intensive energy markets across Europe. As part of their strategy, Reel will focus on growing their team and attracting exceptional talent globally, specifically in the areas of technology, energy, commercial, and operations.
By securing €5 million in investment, Reel is set to disrupt the European electricity market with its innovative approach to B2B renewable electricity supply. With a clear determination to address the limitations of conventional renewable energy certificates, Reel’s transformative model aims to empower companies of all sizes to actively contribute to the renewable energy transition while also accessing fixed-cost electricity. This funding milestone marks a significant step forward in Reel’s mission to drive sustainable change and make a positive impact on Europe’s electricity market.
