Swedish maritime battery system supplier Echandia has closed a new funding round at SEK 220 million (around $20.6 million), through which it expects to ‘strengthen’ its efforts in keeping pace with the global demand for sustainable maritime solutions.
As disclosed, the funding round will support Echandia’s efforts to scale up its operations in order to take on ‘more extensive’ projects while simultaneously increasing its manufacturing capacity.
Specifically, the capital raised is set to be allocated toward the Stockholm County-headquartered company’s expansion and production capabilities in both Sweden and the United States. As informed, expansion investments in the US include the recently unveiled production facility in the state of Washington.
According to Echandia, the round was led by Spanish financial services firm Alantra’s energy transition fund Klima—a 210M€ late-stage venture fund backing energy-tech companies in their early-growth phase—together with Swedish venture capital fund Industrifonden. Sweden’s SEB Greentech VC and Japanese venture capital firm EEI will reportedly also contribute to the financing.
“Decarbonizing hard-to-abate sectors like shipping, aviation, and heavy industry is critical to achieving our global climate goals. These sectors represent a significant portion of global emissions, accounting for about 30% of global GHG emissions and lack readily available solutions. Investing in these sectors isn’t just an environmental imperative, it’s an economic one,” Manuel Alamillo , Partner at Klima, highlighted.
It is understood that, since it was founded in 2018, Echandia has delivered nearly 70 systems for a range of electrification projects. Its maritime battery systems are said to ‘significantly’ cut down on both fossil fuel emissions and fuel costs. Per the company, the battery systems were engineered to meet customers’ requirements for a twenty-year lifespan.
To remind, in May 2024, an undisclosed Northern European ferry operator commissioned Echandia to convert two of its roll-on/roll-off passenger (RoPax) ferries to pure electric propulsion using its battery system. The order was described as “the biggest one yet” for the Swedish player.
Just two months later, Echandia clinched a contract to supply its solution for San Francisco Bay Ferry’s Rapid Electric Emission Free (REEF) ferry program. The first REEF vessel is hoped to enter service in 2026, with the initial battery systems slated for a handover in the second quarter of 2025.