Mitsubishi has announced the acquisition of 20% stake in UK-based greentech Company OVO that will enable the latter to further strengthen its electric vehicle charging and energy storage technology.
OVO is expected to use the proceeds from Mitsubishi’s strategic investment to accelerate the development of its intelligent energy technologies unit, Kaluza and expand its business into new markets across Europe and Asia Pacific.
Dynamic charging and other integration technologies are essential to support the energy market’s expected transition from fossil fuels to renewable energy by 2050, according to Bloomberg NEF, New Energy Outlook 2018.
OVO’s new division develops and manages software and hardware to support the integration of electric vehicles and dynamic battery storage onto the grid.
OVO was established in 2009 by its founder CEO Stephen Fitzpatrick, to disrupt the UK energy market with a new proposition – cheaper, greener and simpler energy. The company has grown rapidly since the past decade to become one of the largest UK independent energy suppliers with over 1.5million customers.
Fitzpatrick said: “Transitioning away from fossil fuels is the biggest challenge we face in the 21st Century. The costs of EVs, battery storage and wind and solar power have fallen dramatically in recent years, but it’s becoming increasingly complex to integrate them onto the grid.
“To succeed, we will need to develop new technology and redesign the energy system around the customer. We want to be at the forefront of that global, tech-enabled transition to a zero carbon energy system. This investment from Mitsubishi Corporation will help us get there.”
OVO’s stake acquisition is said to be a strategic investment for Mitsubishi, which has approximately 6,200MW of energy assets under management and operation worldwide.
Mitsubishi executive vice president, Katsuya Nakanishi said: “OVO’s business model, long-term vision for the energy sector and culture align well with our own. They are precisely the sort of technology driven and innovative firm we have been looking for in order to strengthen the downstream business in the energy sector.
“We have been very impressed with Stephen and his team’s plans for the business. Given our global presence and experience in the energy sector, we feel we are uniquely well placed to help OVO to enhance not only their own business in Europe, but their international expansion plans and broaden their technology offering.”
Greentech Capital Advisors served as the exclusive financial advisor to OVO for the transaction.