Aalborg, Denmark-based Blue World Technologies, a developer and manufacturer of methanol fuel cells as an alternative to non-renewable fuels, announced on Tuesday that it has raised €37M in a Series B round of funding.
In December 2021, the company had raised €20M in funding from the Danish sovereign wealth fund, Vækstfonden, and the German engine manufacturer DEUTZ as main investors.
Investors supporting this round
The current round of funding came from Bill Gates-founded Breakthrough Energy Ventures (BEV), Vaekstfonden (The Sovereign Investment Fund of Denmark), DEUTZ AG, and existing investors from the December 2021 round.
With the investment from Breakthrough Energy Ventures, which was partially funded by Breakthrough Energy Ventures and Breakthrough Energy Ventures-Europe (BEV-E), Allegra Kowalewski-Ferreira will join the board of directors of Blue World Technologies.
Mariya Gabriel, European Commissioner for Innovation, Research, Culture, Education and Youth, says, “Maritime transport is considered one of the hard to abate sectors and represents 3-4 per cent of EU’s total CO2 emissions. This investment by Breakthrough Energy Ventures-Europe represents a significant step in realising the emission reduction potential and is fully in line with the EU’s policy of boosting marine renewable and low-carbon fuels.”
Capital utilisation
Blue World Technologies says that the funds will help the company to scale its fuel cell production as well as invest in the development of methanol-driven fuel cell applications for the maritime sector.
Carmichael Roberts of Breakthrough Energy Ventures says, “Maritime shipping is a critical component of our global economy, but it contributes 1 billion metric tons of carbon emissions each year. We see a real opportunity in bringing methanol fuel cells to the maritime sector as a very promising avenue for reaching net-zero CO2 emissions quickly. Blue World Technologies has found a unique way to offer marine transportation operators a climate-friendly solution with an attractive total cost of ownership.”
In 2021, Blue World Technologies started pre-series manufacturing and insourced all production of essential fuel cell components. The company will begin series production later this year, and with additional scaling, the business anticipates reaching a manufacturing capacity of 500 MW in a couple of years.
The next generation of high-efficient methanol fuel cell solutions
Founded in 2018 by Anders Korsgaard, Mads Bang, and Mads Friis Jensen, Blue World Technologies is on a mission to bring energy-efficient and cost-effective methanol fuel cell technology to the world. This technology acts as an alternative to fossil-based combustion engines.
The methanol fuel cell technology from Blue World Technologies may be used to replace combustion engines and diesel generators in a number of different applications. The company looks to industrialise its technology via research and development, and supply competitive and energy-efficient methanol fuel cells to industries all over the world.
Co-founder Anders Korsgaard says, “On the quest to reach net-zero CO2 emissions, one of our greatest contributions will be within the maritime sector, where our fuel cells can play a significant role. Initially as a replacement for fossil-based auxiliary power units, and in the longer term, also for driving the propulsion. From the very beginning, the maritime sector has been a central topic in our dialogue with Breakthrough Energy Ventures, which goes well in hand with the sector’s growing interest for methanol as a fuel, and therefore we also see a huge potential in entering the market.”
According to the company, the marine industry presents one of the biggest obstacles to achieving a net-zero future since direct electrification is not a possibility owing to operating needs. In 2050, there is a possible yearly CO2 reduction of 1.8 Gt, therefore new technologies and fuels are crucial.
The use of renewable methanol as a fuel for transportation has become a worldwide trend as methanol-powered ships, cruise ships, and massive ocean-going cargo ships are now being developed. With zero particle output, Blue World Technologies’ fuel cell devices offer environmentally friendly, CO2-neutral operation.
Depending on the ship type and user, the system can be utilised for propulsion, auxiliary power, smaller gensets, or bigger power units in the megawatt range.
Brief about Breakthrough Energy Ventures-Europe
Breakthrough Energy Ventures Europe (BEV-E), a new €100M investment fund, was established by the European Commission, the European Investment Bank and Breakthrough Energy Ventures during the Fourth Mission Innovation Ministerial meeting in Vancouver, Canada.
The fund helps develop “innovative” European companies to bring new clean energy technologies to the market. It supports Europe’s clean energy entrepreneurs whose solutions can deliver significant and lasting reductions in greenhouse gas emissions. The first of its kind, it caters to the capital intensity and long development horizons that energy technologies need.
Funding for BEV-E includes a €50M contribution from the European Investment Bank guaranteed by InnovFin, a financial instrument funded through the EU’s research and innovation programme, and a €50M contribution from Breakthrough Energy Ventures, an investor-led fund committed to supporting cutting-edge companies in the energy sector.
