Elbow Beach Capital has led a £900k seed investment round into battery technology and energy storage pioneers, Allye.
Allye provides distributed energy storage at the grid edge working in partnership with electricity networks to accelerate decarbonisation while enabling end-users to lower energy costs by up to 50%.
Allye’s software-enabled hardware will initially target industrial and commercial customers, deploying self-learning battery systems at scale. Allye’s first solution, the Max, is the world’s first mobile energy storage system that repurposes healthy battery packs from electric vehicles. The Max is a 300kWh energy storage system which combines battery storage technology and intelligent software to bridge the gap between two separate markets: stationary battery energy storage systems (on-grid) and mobile temporary power solutions (off-grid). As a single product, the Max provides a dual purpose for both of these markets, acting as a smarter, mobile alternative to containerised BESS devices, and a cleaner, noiseless alternative to diesel generators.
The proceeds of this round will be used to support the manufacture and launch of the Max with first systems for industrial users expected in Q3 2023. Allye is targeting the installation of 10,000 Max units by 2030 providing an installed capacity of 3GWh. From 2030 onwards, Allye will look to install 5,000 units per year.
In parallel to the Max, Allye is developing further intelligent battery systems for commercial and residential markets to ensure that all businesses and households will be able to benefit from its intelligent distributed energy storage technologies. If the company’s sales targets and international expansion plans are met, Allye expects to generate £8.5million in revenue next year and £45m in 2025.
Nick Charman, Chairman of Elbow Beach commented: “Allye’s innovative technology and the exceptional team behind the company align perfectly with our investment thesis. We are excited to support Allye on their journey as they tackle multiple pain points simultaneously and unlock the vast potential of energy storage solutions.”
Jonathan Carrier, CEO of Allye commented: “Elbow Beach Capital and Alpha Future Funds share a commitment beyond the financial. They believe smart energy storage can accelerate the decarbonisation of the electricity grid and help businesses and households access cleaner, cheaper energy. This investment will provide us with the platform for future success.”