Estonian Cleantech Startup Efenco Secures €4.5 Million to Tackle Global CO2 Emissions
An Estonian technology company specialized in clean energy solutions secures €4.5 million in funding to develop low-emission industrial energy solutions.
Efenco, an Estonian startup specializing in clean technology, has announced the successful closure of a €4.5 million financing round. The funds will be used to engineer products that aim to reduce global carbon emissions.
The financing came from two primary sources: €1.3 million led by Ivo Remmelg for EstBAN Syndicate, and €3.2 million in grants from the EU's European Innovation Council and Estonia's Archimedes Foundation. The funds will primarily support product engineering, focusing on integrating advanced materials to ensure durability, functionality, and compliance.
In a statement, Efenco revealed that it has already achieved a 20% energy and carbon savings for a major utility firm in Tallinn, with eight more commercial pilot projects to follow. The company aims to help eliminate 77 million tons of global CO2 emissions by 2033—the equivalent of 416Twh of new clean energy, or 40% of the EU industrial heat sector's annual consumption.
With net-zero carbon emissions becoming an urgent priority, 140,000 TWh of energy are still generated from fossil fuels worldwide. Despite rapid advances in renewables, this constitutes nearly 80% of global energy production, presenting a significant challenge that Efenco aims to address.
The startup believes its solution can enhance the combustion efficiency of natural gas by up to 40% and hydrogen by up to 75%. Notably, unlike other plasma-assisted combustion technologies, Efenco's cold-plasma-assisted combustion technology does not require an external energy source. Instead, it uses waste heat generated by combustion to produce plasma and improve reaction efficiency. This EU-patented technology was validated by scientists from the University of Tartu in 2016 and 2022 with financial support from the EU's Horizon program.
Efenco's technology is designed to be inserted into otherwise unmodified combustion boilers, with conversion taking a few hours and applicable across various industries that require high-output energy generation. Besides steel and cement production, it also presents opportunities for electricity generation, pulp and paper manufacturing, and ceramics production. Smaller scale boilers, including domestic heat boilers, are also planned for future implementation.
The company, established in Tallinn, was co-founded by Kristjan Tiik, Aleksandr Nagornoy, and Aleksander Vlassov. To date, it has raised €4.5 million, including EU-funded research grants and an equity commitment from the European Investment Bank.
Efenco, the Estonian startup headquartered in Tallinn, is utilizing its advanced technology to tackle global CO2 emissions. The company's cold-plasma-assisted combustion technology, patented in the EU, aims to enhance the combustion efficiency of natural gas and hydrogen by up to 40% and 75% respectively, without requiring an external energy source.
