Fouriertransform is to invest SEK 40 M in Effpower AB through a rights issue. The investment is conditional upon other shareholders investing a corresponding amount. Effpower was founded in 1999 to commercialize an invention within bipolar battery engineering. Current owners include Volvo Technology Transfer AB and Industrifonden AB.
“The focus on environmental investments in the automotive industry is a key strategic path and car manufacturers will be introducing more and more car models with environmentally friendly technological solutions, such as the start/stop function to reduce fuel consumption. VW, for example, has promised that 100 per cent of its cars will include this function in a few years. This trend is perfectly suited to Effpower's batteries and steering systems. Consequently, we view the company's chances of success with its products as very positive and in line with the times,” says Per Nordberg, CEO of Fouriertransform.
Effpower develops a bipolar lead/acid battery that can deliver high effect, is recoverable and has a long service life, at approximately one third of the cost of current batteries (nickel hydride) used by hybrid cars. This makes the battery suitable for start/stop functions and micro/mild hybrid solutions. The company developed the battery in collaboration with the automotive industry and prototypes have been tested by several car manufacturers with very positive results. The company intends to commence serial production in 2011. In parallel, a system for monitoring and steering of batteries has been developed, which can also be used to steer other battery systems.
“The range of micro/mild hybrids will also increase strongly. Batteries with corresponding monitoring and steering systems that we developed will be very competitive, based on performance and costs," says Per Svantesson, CEO of Effpower.
Technical description
The Start/stop function in a vehicle stops the combustion engine when the vehicle is in idling mode, for example, when it stops at a red light or during traffic congestion and thus saves fuel and reduces emissions. The engine restarts directly when needed. The technology places demand on the vehicle's start battery, which is why the development of stronger, lighter and more efficient batteries is important.
Micro hybrid is a vehicle with only a fossil fuel engine, but with such functions as start/stop function, recharging of battery during braking and other energy savings functions.
Mild hybrid is a vehicle with a small electric engine in parallel with a full-scale combustion engine, whereby the electric engine recharges the batteries during braking and supports the combustion engine during acceleration.
Full hybrid is a vehicle equipped with a larger electric engine, a larger battery package and a reduced combustion engine. The vehicle can operate on pure electricity for a limited period.
Fouriertransform AB (FTAB) is a venture capital company founded and owned by the Swedish state for the purpose of investing in companies in the automotive industry. FTAB has a commercial focus and its investments are expected to generate a long-term market-based return.
Volvo Technology Transfer AB is a wholly owned subsidiary of AB Volvo. Volvo Technology Transfer develops and supports new businesses that are relevant to the Volvo Group. Part of the work is to invest in companies and projects that are strategically, technologically and commercially interesting.
Industrifonden is an independent foundation formed by the Swedish government in 1979 to offer venture capital, competence and a network of contacts to small and medium-sized companies that want to grow. The fund's focus is on creating value in its portfolio companies. All investments are made on commercial terms together with entrepreneurs and co-investors.
For further information, please contact:
Per Nordberg, CEO of FTAB, Tel +46 8 506 503 50
Lars-Olof Gustavsson, Chairman of FTAB, Tel +46 8 14 54 20
Per Svantesson, CEO of Effpower AB, Tel +46 31 55 90 92
Last updated
2010-06-03