The investment provides Connected Energy with working capital to realise ambitious growth plans in the UK and Europe. Connected Energy has developed the world’s only commercially available stationary energy storage system that uses electric vehicle battery packs after they have completed their useful lives on-board vehicles.

The reuse of electric vehicle batteries is a compelling circular economy innovation. Second life enables greater exploitation of the carbon and energy embedded in the manufacturing of the batteries, adding to the sustainability credentials of electric vehicles as well as the electricity system. Using second life batteries also reduces system costs – making energy storage systems financially viable for a wider range of end users.

Connected Energy’s solution (called E-STOR) is a British designed technology that helps industrial and commercial customers to mitigate their network costs and achieve uninterrupted power. E-STOR provides the same performance as first life batteries, but at a lower cost and in an environmentally friendly manner.

Connected Energy, based in Newcastle upon Tyne with a technical centre near Norwich, has developed strategic relationships with Renault and other electric vehicle manufacturers and has a promising pipeline of blue-chip clients and projects where it expects to deploy the E-STOR system.

Connected Energy CEO Matthew Lumsden said: “We are delighted that Macquarie and ENGIE have provided this significant financial and management value for our phase of aggressive market growth. We have a tremendous pipeline of demand for battery-based storage systems.

"Our E-STOR system is proven, with very positive feedback from customers appreciating its full service offering as well as our low costs and exceptional sustainability credentials. In this uncertain energy landscape we look forward to capitalising on the burgeoning need for grid balancing schemes through energy storage, as well as adding to the sustainability of electric vehicles.”

Macquarie’s Commodities and Global Markets group senior managing director Matthew Booth said: “The provision of energy storage to support grid stability and create a charging network for electric vehicles will be a major theme in power infrastructure over the coming years. We are pleased to have invested in this innovative company which has developed an environmentally friendly and low cost solution to help meet this need.”

Engie New Ventures managing director Hendrick Van Asbroeck said: "Engie is developing innovative and effective energy solutions to overcome the challenges of the transition to clean energy. This investment is an exciting opportunity to develop together with Connected Energy leading and environmentally friendly energy storage solutions for our customers.”