Berlin-based Zero44, a software company that aims to provide the maritime industry with digital solutions to reach carbon zero, announced on Thursday, May 24, that it has secured €2.5M in a seed round of funding.
The round was led by early-stage investor Atlantic Labs. Starthub Ventures, Bernhard Schulte Innoport, and several business Angels from the logistics and shipping industry also invested in the round.
Atlantic Labs is a pan-European pre-Seed VC fund. It backs mission-driven founders in sectors such as climate tech, digital health, the future of work, AI & data, mobility & logistics, industrial automation, finance, and proptech.
Digital solutions to reach carbon zero in shipping
According to Zero44, for companies in the marine sector, managing emissions has become a top priority. The EU’s decision to include shipping in the Emissions Trading System (EU ETS) beginning in January 2024 will have a significant impact on the sector.
The sector still has difficulties with the Carbon Intensity Indicator (CII) rules, even though they have been in effect since 2023.
Future solutions will rely on new kinds of ships and sustainable fuels, but they are both expensive and not accessible in the short term. Because of this, deploying technological solutions immediately will play a crucial role in cutting emissions.
And this is where Zero44 looks to make a difference.
Founded in 2022 by Friederike Hesse and Nils Obermann, the startup aims to provide the maritime industry with digital solutions to reach carbon zero.
It assists the maritime sector (shipping firms, charterers, and ship managers) to develop practical CO2 strategies as well as reduce CO2 significantly and quickly.
Friederike Hesse says, “The shipping industry needs to quickly become sustainable and reduce emissions. The pressure from politics and legislation has increased massively, and for many companies, this is a huge challenge.”
“We offer them an answer and can help them to quickly become sustainable and reduce emissions.”
“The fact that we were also able to convince Atlantic Labs of this vision and win them over as an investor is an important sign – for us and the entire market – especially in times when VC money is being awarded much more sparsely than before.”
In 2024, EU emissions trading will bring challenges and expenses to the maritime sector. The Zero44 solution provides shipping firms with a complete and daily updated overview of their CO2 emissions, the required EU certifications, and the accompanying cash flow.
Furthermore, customers can buy certificates through the portal and transfer them to contractual partners.
Capital utilisation
According to Nils Obermann, the funds and Atlantic Labs’ expertise and network will help the company to further develop and optimise its software, expand its workforce, and acquire new customers.
“In addition, time is pressing to prepare as many companies in the shipping industry as possible in time for the EU Emissions Trading System. We need resources for this as well – through this financing round, we have them,” says Obermann.
Since its inception in 2022, Zero44 claims to have gained well-known clients and partners, including MPC Container Ships as a development partner and MariApps Marine Solutions as a distribution partner.
Christophe M. Maire, Founder and Managing Partner of Atlantic Labs, adds, “Decarbonisation in shipping is an extremely important, promising field in which we want to invest more. And zero44 has convinced us: the team is doing great work and the timing is perfect.”
“The entire market is urgently looking for the best options to reduce emissions and make the transition to the EU Emissions Trading System as smooth as possible. With zero44, they are finding that solution.”