Reel secures 5 million euros

The energy start-up announces a financing round of 5 million euros. The company plans to expand into carbon-intensive energy markets across Europe with the aim of revolutionizing conventional electricity procurement

Munich, January 22, 2024 - Danish energy startup Reel announced today that it has successfully closed a €5 million seed financing round. The financing was led by venture capital fund Transition, which specializes in climate startups. Existing investors such as UVC Partners and The Footprint Firm also participated, as well as a group of energy specialists and founders, including Daniel Nathan, Chief Project Development Officer of Climeworks, and Christian Bach, co-founder of Netlify.

The background to this investment is the desire to increase the impact on climate change by reshaping the way companies source and use electricity. Globally, CO2 emissions from electricity contribute significantly to the climate challenge (IPCC 2022), with commercial and industrial consumption accounting for around two-thirds of global electricity consumption.

These certificates lead to companies' CO2 reduction efforts being greatly overestimated. Accordingly, the risk of failing to meet the Paris Agreement is further increased.

Anders Engtoft Meldgaard, CCO and co-founder of Reel

Reel provides companies with an alternative to the traditional purchase of renewable energy, especially with regard to Guarantees of Origin. Traditional certificates are often criticized for contributing little to actual CO2 reduction. The startup enables companies to enter into Power Purchase Agreements (PPAs) that offer fixed electricity prices while reducing CO2 emissions by feeding renewable energy into the grid.

Since leading Reel's pre-seed round, we have watched the team successfully integrate its business model into the electricity value chain.

Alexander Kiltz, Principal at UVC Partners and member of Reel's advisory board

Reel plans to use the funding to expand its product offering and introduce its power procurement model to carbon-intensive energy markets across Europe. This includes expanding the team, particularly in the areas of development, sales and operations.