Norsepower, a Finnish provider of mechanical sails for large ships, has successfully secured €28m in its latest Series C fundraising round, with French asset manager Mirova, an affiliate of Natixis Investment Management dedicated to sustainable investment, leading the fundraising through its impact private equity Mirova Environment Acceleration Capital fund.
Additional participants in the round included The Finnish Climate Fund (Ilmastorahasto), OGCI Climate Investments, Nefco – The Nordic Green Bank, Tesi, and Power Fund III. With a focus on impact, these organisations have joined forces to enable Norsepower to scale up production and expand the reach of its fuel-saving and emissions-reducing technology.
On a mission to decarbonise the shipping industry, Norsepower is committed to harnessing the power of the wind for large ships. According to Norsepower, there are currently 30,000 vessels on the water today that can benefit from Norsepower Rotor Sails, which highlights the opportunity to reduce CO2 emissions across the global fleet by 80 megatons on an annual basis.
The Norsepower Rotor Sail is a modernised version of the Flettner rotor. It uses a minimal amount of the ship’s electric power to rotate cylinder-shaped rotors on the ship’s deck. Rotation together with wind generates powerful thrust – saving fuel and reducing emissions. The product has already been used by customers for over eight years and has 250,000 operating hours of verified performance data acquired from well-known shipping companies and charterers. This performance data includes installations in collaboration with customers including Bore, Sea-Cargo, Scandlines, Vale, CLdN, Nippon Marine, and Socatra who have selected Norsepower Rotor Sails for improving fuel efficiency and reducing the emissions of their shipping operations. The data – which shows fuel consumption savings 5%-25%, or more – has been measured and analysed independently by Lloyd’s Register, as well as ABB, NAPA, Chalmers University of Technology and VTT.
Provided as a combination of equity financing and loans, the breadth and scale of the investment round, combined with the increased participation of existing investors, signals a clear vote of confidence in Norsepower’s ability to deliver on its objectives. The new funding will help accelerate Norsepower’s scale of production and help to meet increasing global demand. It will also strengthen Norsepower’s product research and development, marketing, recruitment, and sizeable intellectual property portfolio.
Tuomas Riski, CEO, Norsepower, said: “Our goal is simple – to cut the emissions of large ships by saving fuel with our proven Norsepower Rotor Sails. We are going to bring a modern spin to wind propulsion technology. We empower the industry to use our product alongside other technologies to achieve zero-carbon, cost effective sailing. With over 30,000 vessels globally that can benefit from our product, our scale-up ambitions are bold but realistic. It’s a win-win for everyone, including the planet. The additional funding from one of the world’s leading sustainability investors is a massive leap in the right direction and a clear vote of confidence in our brilliant team, innovative technology, and the overall trajectory of our business.”
Youssef Belatar, Investment Director, Mirova, said: “With this first investment outside of France, the Mirova Environment Acceleration Capital Fund goes one step further to accelerate the scaling of innovative environmental solutions with positive impact. We are thrilled to support Norsepower in their journey to empower the shipping industry towards reaching the goal of zero carbon emissions, and together play an active role in the environmental transition.”
