Stem, a California-based energy storage company which develops artificial intelligence (AI)-based solutions, has secured C$200m ($152.2m) funding from Canada’s Ontario Teachers' Pension Plan.
Image: Ontario Teachers' commits to $152.2m funding in energy storage company Stem. Photo: courtesy of Fré Sonneveld on Unsplash.
The new funding secured by Stem will help it finance the acquisition of artificial intelligence-driven energy storage projects in the Ontario market.
The energy storage company also raised an additional $26m in its second close of Series D financing led by BNP Paribas, Magnesium Capital and other investors.
Overall, the company has taken its total Series D round to about $110m following the second close.
Through the expansion of corporate and project equity, Ontario Teachers’ will help Stem in delivering fully-financed energy storage systems for its customers in Ontario to reduce their energy bills and cut down on their Global Adjustment, or peak-demand costs.
Stem and its partners expect the funds to be fully used within the next 12 months.
Stem CEO John Carrington said: “Our project financing partnership with Ontario Teachers’ enables us to further invest in Ontario and present customers with a stable, long-term offer to drive down energy consumption costs.
“Moreover, Stem continues to attract top-tier international asset management interest in our ability to transform electricity grids with vast energy storage networks and our superior artificial intelligence platform.”
It was in January that Stem forayed into the Canadian market through its Global Adjustment offering which has been particularly designed for Ontario. The energy storage company also claimed that its Global Adjustment offering is well-suited for large manufacturing plants and other industrial operations striving for improved control over energy costs.
Ontario Teachers senior managing director Dale Burgess said: “Stem represents a proven first mover in the storage sector with an innovative solution that drives value for its customers.
“Ontario Teachers’ believes there is significant value in providing a firm and competitive financing solution for industrial customers in Ontario.”
Stem’s AI-based energy storage solution Athena carries out real-time energy optimization that decreases onsite peak demand and allows customers to take part through the company’s networks to access additional services and value streams.