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Sunday, June 26, 2022

Swedish Smart Grid Hexaformer Closed 2nd Round

hexaformer_32956a1For a cleantech view in 2009/10, economic stimulus packages have moved to centre stage. USD 396 bln in stimulus funding is going to green investments announced by G20 countries, of this about 50 % of amount will be invested in 2009, according to Cleantech Group (an article). Interestingly, many areas formerly called “infrastructure” have been now rebranded as “green” (like for instance electric transmission lines, smart grid and metering, power system automation)!

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Swedish electric transformer company Hexaformer is an excellent case example for a company benefit from the ongoing “green” or electric infrastructure opportunities (when the old technology or ageing infrastructure in many countries, especially in the US, require updating). The company, founded in 2004, closed second round of EUR 3.3 million last week backed by Swedish cleantech investor Sustainable Technologies Fund and the first round investor, Innovations Kapital (which invested EUR 3,3 in May 2007) (a press release).

Hexaformers patented technology enables the manufacturing of closed symmetrical delta shaped transformer cores. Hexaformer claims, that conventional transformers are manufactured through time consuming cutting and stacking of electric steel into an E-shaped form (with larger waste material). Hexaformers transformer core creates value add to the energy utilities by increasing cross-margins with more effective transformers which decrease energy losses by 10 – 15 % compared to conventional E-types as well as lowering CAPEX costs by 25 – 30 % with less usage of raw material (2/3 of user price for transformers is based on raw material). By decreasing electric steel and copper need in manufacturing, we talk also about the environmental impacts, said CFO Mattias Klintemar last week on phone.

The company has now 10 – 15 % market share in Nordic countries. The company has in-house production in Västervik, Sweden.  Hexaformers has now sold more than 700 transformers through the distributor network to Nordic utilities like Fortum, Vattenfall, Eon and Banverket. In addition, Hexaformer is licensing the delta core to the US market with the subsidiary (50 %) MSECC LLC.

According to Mattias, it took less than one year to close the round. He said, that Hexaformers investment story is based on two leg strategy: scaling up the sales in North Europe and production volumes in Västervik and also a technology licensing agreement with a significant upfront fee with a still confidential customer in the US.

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