Oxto Energy has secured a £300,000 loan from the Enterprise M3 Short Term Loan Scheme to cover upfront costs for an overseas contract.
The finance will enable the company, which is headquartered in Guildford, to cover the advance payments for materials and sub-contractors that are required to fulfil its latest project to install 10 flywheel batteries in Kenya.
Oxto has developed a new generation flywheel energy storage technology that can deliver safe, scalable energy storage at a competitive cost. The flywheel battery works alongside any renewable energy source, from large wind turbines to smaller electrical vehicle charging stations, stabilising and storing the electricity from these sources. This provides Oxto’s customers with reduced energy costs while helping them to achieve their sustainability goals.
George Prassinos, Founder and CEO of Oxto Energy commented: "The upfront costs associated with large contracts can be prohibitive to small businesses like ours. This finance gives us the capacity to take on the opportunities available and further the growth of the business. The FSE Group analysed our current pipeline and the companies we partner with and was able to provide the support needed for us to deliver this latest project."
There has been a large growth in demand for cleantech power solutions globally, including in energy storage, which has traditionally been fuelled by diesel. Oxto Energy is constantly researching ways to design and manufacture comprehensive solutions that can meet the varied requirements of global companies and diverse electricity markets.
James Edwards, Investment Manager at The FSE Group which manages the EM3 Short Term Loan Scheme on behalf of Enterprise M3 Local Enterprise Partnership, added: "Oxto’s highly experienced and well-connected management team has successfully developed an innovative, market-leading technology that is gaining traction across the globe. With five contracts secured and a further 30 in the pipeline, they are well on course to reach their growth ambitions and we look forward to working with George and the team to see this delivered."
Kathy Slack OBE, Director Enterprise M3 LEP, said: "Enterprise M3 LEP has put the global goal of Net Zero at the very heart of our economic recovery plan, so I am delighted that we’ve been able to help fund OXTO Energy to further develop its flywheel energy storage technology through a project in Kenya. This demonstrates the many opportunities available to businesses within the cleantech industry and I look forward to seeing more investments like this in the future."
The EM3 Short Term Loan Scheme is part of the Enterprise M3 Funding Escalator, £10 million initiative funded by Enterprise M3 LEP. The escalator, which also includes an expansion loan scheme and an equity growth fund, provides eligible companies with loans and equity funding between £50,000 and £300,000 for activities that will deliver high-growth and employment opportunities across the EM3 area.
About OXTO Energy
OXTO Energy is a global energy storage and technology provider. Its proprietary hardware technology is focused on a completely new generation of flywheel batteries which have the potential to change energy storage for industries like manufacturing, transportation, real estate and many more by stabilising electricity from renewable intermittent sources of energy and reducing the cost of power consumption.