2020 marked the first year in the UK’s history that electricity came predominantly from renewable energy. While this ongoing shift towards the National Grid’s 2050 net-zero target is encouraging, it requires a significant increase in battery storage capacity to regulate energy supply and demand.
Allye, a battery technology and energy storage business that aims to provide grid resiliency while helping businesses overcome rising energy bills by providing cheaper, greener and more accessible energy, has announced it has raised €1 million funding round led by the decarbonisation, sustainability and social impact investor Elbow Beach Capital. Also participated Alpha Future Funds.
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.”
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 a mobile energy storage system providing distributed energy storage at the grid edge. One system has 300kWh capacity, enough to power a typical factory for two days or 40 homes for a day, this capacity can also be increased by connecting several units together.
The Max aims to bridge the gap between two separate markets: on-grid Battery Energy Storage Systems (BESS) which are bulky, expensive to install and difficult to transport; and off-grid mobile power solutions, such as diesel generators. 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 the 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.
“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,” commented Nick Charman, Chairman of Elbow Beach Capital. Allye is Elbow Beach Capital’s third investment in the battery technology and electric vehicle space following previous investments in Munro Vehicles and Anaphite.
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.
