Close

Jump to:

  • Navigation
  • Content
  • Footer
Achelous Energy hero image

Achelous Energy

Follow

Harnessing river power. Impact technology for Net Zero.

208%
 - 
Funded 8 Dec 2021
£230,005 target
£485,484 from 784 investors
More
Less

Business overview

Location Edenbridge, United Kingdom
Social media
Website www.achelous.co.uk
Sectors Energy Non-Digital B2B
Company number 10640223
Incorporation date 27 Feb 2017
More
Less

Investment summary

Type Equity
Valuation (pre-money) £7.5M
Equity offered 6.02%
Share price £5.1
UK tax relief

EIS

More
Less

Business highlights

  • Innovative cleantech using river flow to create constant power
  • Scalable to address small and large energy markets globally
  • Full-scale demonstrator unit ready for testing in Q1 2022
  • Planned extensions to potable water and hydrogen production
More
Less

Key features

  • Secondary Market
  • Nominee investment min. £10.20 +
  • Idea
  • Key Information
  • Team
  • Updates
  • Investors 784
  • Discussion
  • Documents

Idea

Introduction

The world must transition to renewable energy to halt the progress of climate change and achieve Net Zero. The renewable electricity marketplace is estimated to reach US$2.5 trillion by 2025 and to grow by up to 50% globally by 2050.

One of the main issues facing most existing renewable technologies is that the natural resources they draw on, such as wind or solar energy, are intermittent – this means power cannot be constantly created. Hydrokinetic, 'run-of-river' technology is different.

Achelous Energy’s innovative FITS technology uses the constant resource of flowing river water to power its vertical axis turbines. This enables it to produce continuous power without the need for large, energy storage facilities.

The potential for power generation from rivers is truly global.

Across the world and throughout history, human civilisations have settled near rivers, meaning FITS technology can be implemented close to where it is needed at a viable price point from start of life.

Substantial accomplishments to date

Achelous Energy was co-founded in 2017 by Tim Wood and James Diddams.

In 2019 the company was awarded over £1m GBP grant funding through Innovate UK’s Energy Catalyst 7 programme, to develop its innovative hydrokinectic power generation technology and is currently in the final stages of delivering this project to design, build and test a full-scale 200kW FITS power plant.

Achelous Energy secured a further innovation award in 2019, winning a full Intellectual Property audit and pathway assessment for its FITS technology through the UK IPO.

In August 2020 the company was featured in the Department of Industry and Trade’s UK-ASEAN Business Opportunities in Renewable Energy paper, specifically referencing FITS technology.

Fabrication of the full-sized FITS demonstrator unit is planned to complete before the end of the year in Yangon, Myanmar, and testing is scheduled for Q1 2022. These results will provide final confirmation of the unit's power outputs, already validated through scale model testing, undertaken earlier this year at QinetiQ's Marine Technology Park.

In October 2021, Achelous Energy announced the signing of a Memorandum of Understanding with the Nepal Energy Foundation (NEF) for the future development of a pilot project. This agreement puts in place the pathway to execute the company’s first commercial project, with NEF already undertaking initial community engagement and river resource survey assessment.

Monetisation strategy

Achelous Energy's primary revenue generation will be through the sale of FITS units to energy project developers. The company will generate additional recurring income streams through the provision of service and data monitoring contracts for its installed FITS units.

During initial commercialisation the company will target energy access projects with single FITS units, expanding to multi-unit array projects in utility-scale markets thereafter.

While establishing early market traction, Achelous may adopt a development role in initial energy projects. It will assist in the set-up, installation and operation of FITS projects, until they're sufficiently proven, at which point it will exit through sale.

The cost of FITS technology is highly competitive from the outset, with an LCOE of less than a third of local diesel generation. As design and production of FITS units is refined, costs will reduce further, facilitating Achelous' plan for commercial scale-up and entry into utility markets.

Use of proceeds

Funds raised will be used for three main purposes:

Achelous has already developed early relationships with commercial entities in key targeted energy access markets, including Nepal and Bangladesh. It's also working with the UK DIT in New Zealand to identify and progress commercial project opportunities. Funds from the Seedrs raise will be used to further advance these relationships and to secure one or more committed commercial projects for development, positioning the company for a series A raise in 2023.

The company will sell its full-scale demonstrator unit, either to a single commercial entity looking to develop clean energy or into one of two pilot projects. Completed sale of the FITS demonstrator is targeted within 2022.

There are significant pathways for FITS technology market expansion in clean water and hydrogen production. Achelous is also passionate about developing the use of recycled plastics as part of its construction, enabling FITS to make an even greater impact.

Key Information

Outstanding Debt

The company has the following loans:

1. A Business Bounceback Loan of £50,000 with an interest rate of 2.5% per annum. The loan is repaid in monthly instalments, with the final repayment due in March 2027.

2. An Investor Loan of £119,800 with 0% interest. It is payable back upon the company being profitable, and having “over and above what is needed to meet current liabilities and cover overhead costs of 6 months as determined by the Board” as working capital in the bank.

3. Two Directors Loans; one from Tim Wood of £63,700, and one from from James Diddams of £61,900. These loans have 0% interest and are payable back upon the company being profitable, and having “over and above what is needed to meet current liabilities and cover overhead costs of 6 months as determined by the Board” as working capital in the bank.

The funds from this round will not be used to repay these loans.

Director Disclosures

The founders also own a company named Cleantech Engineering Limited. Prior to securing the Inovate UK Grant, the company also offered consultancy services. Once the grant was secured, the consultancy business was undertaken by Cleantech Engineering Limited. This company has several ongoing consultancy projects for those pre-existing clients, but is not looking to develop any new clients, and the founders spend on average less than 8 hours per month on this company.

Prior to securing the grant, when the founders were still operating as a consultancy, they carried out design work for Global OTEC Resources, an offshore platform that uses temperature differentials in sea water to generate power through a closed loop heat engine and therefore has zero cross-over with the FITS river hydrokinectic technology. In return, the founders accepted equity into the company for the design work. Tim Wood and James Diddams therefore each currently hold 7.5% shareholding in Global OTEC. They are not employees, directors or board members of Global OTEC.

Open an account to get access to the team members of Achelous Energy

Sign up

Already have an account? Log in

To comply with financial regulations, we can only show full campaign details to registered users.

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Share on:

Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.

This campaign for Achelous Energy has been approved by Seedrs Limited (trading as Republic Europe) ("Republic Europe", "us" or "we"), as of 4 November 2021 as a financial promotion. Republic Europe is authorised and regulated by the Financial Conduct Authority with firm reference number 550317. In approving this campaign, Republic Europe has concluded that the information, taken as a whole, is "fair, clear and not misleading." This means that for factual statements we have reviewed evidence of their accuracy, and that for aspirational statements we believe they are phrased appropriately in light of their speculative nature. You should note that in the case of factual statements, the evidence we review is provided by the business, and we do not audit it, which means that we may not be able to identify forged or altered evidence. You should further note that in the case of aspirational statements, the nature of the type of businesses presented on the Republic Europe platform is such that they are likely to have high ambitions, and we may approve statements that convey those ambitions even where we do not believe, or we do not have a view on whether it is likely, that they will be fully realised. The pre-money valuation and investment sought in the campaign are those set by the business: they are not reviewed or established by us, and the valuation is not an independent view of what the business is worth. Given the nature and type of businesses presented on the Republic Europe platform, it is possible that the business has very little cash remaining prior to receiving this investment, and the investment sought may be necessary for the business's on-going existence.

Republic Europe does not make investment recommendations to you. No communications from Republic Europe, through this website or any other medium, should be construed as an investment recommendation. Further, nothing on this website shall be considered an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful. Republic Europe does not provide legal, financial or tax advice of any kind. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with Republic Europe, you should consult a professional adviser.

Tax Relief (SEIS)

This business is eligible for SEIS relief - providing qualifying investors with income tax relief of 50% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Tax Relief (EIS)

This business is eligible for EIS relief - providing qualifying investors with income tax relief of 30% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Valuation (pre-money)

Valuation rounded from £7,500,060

This is the fully-diluted pre-money valuation of the business (i.e. before the new investment comes in and including issued options and other equity interests). In contrast, the post-money valuation is based on inclusion of the new investment in the value.

It is calculated as the pre-money valuation plus the amount of new investment. e.g. If Company A is ascribed a pre-money valuation of £1,200,000 by prospective investors investing £300,000, its post-money valuation is £1,500,000.

The investee business is responsible for setting its own valuation, it has not been prescribed by Republic Europe.

Pitch type

Investing in a regular equity campaign is the simplest and most common way to invest in a startup. You decide which business you want to invest in, and if the campaign hits its funding target then you will become one of their shareholders. As the company becomes more valuable, so do your shares; allowing you the opportunity to share in the future success of the business.

Learn more about pitch type on Republic Europe

Equity Offered

The equity offered is the percentage of the company’s shares being issued in return for the amount of investment raised.

When the amount raised is less than 100%, the equity offered is based on the target raise. Once the company has raised over 100% it is based on the total raised.

In some scenarios, entrepreneurs may accept additional direct investment after closing their Republic Europe campaign. Provided this is within 6 months of the closing and on the same terms, we do not typically offer pre-emption rights on that extra investment (where you have the opportunity to invest again to maintain your percentage shareholding).

Learn more about investing and pre-emption rights.

Nominee investment

This shows if you are able to choose, when making an investment, that you be represented by, and your shareholding be managed by, the Nominee investment.

Find out more

Custodian

If you invest in this Campaign, Republic Europe will act as Custodian rather than provide our standard nominee service. This is due to the fact that the business is not directly involved in the share sale and Republic Europe will not benefit from any rights under a shareholder agreement. As a result, Republic Europe will handle administrative tasks as we do normally, but you will not have information or voting rights, updates from the business, preemption on future fundraising, or ongoing support about business trading activity.

Learn more about Custodian here

Secondary market

This shows if the business has opted-in or opted-out of allowing its shares to be bought and sold on the secondary market.

Find out more

Direct investment

If available, this is an option to invest and hold shares 'directly' in the company (rather than via the Nominee investment). This option is only available to those investing over the threshold amount, which is determined by the fundraising company.

If you choose to hold your shares directly, you will be responsible for any contractual or administrative arrangements with the company you are investing in.

Find out more

Payment options

We are not able to accept card payments for investments into this sector. You can pay for your investment by creating a bank transfer or using funds in your investment account. Your investment will only be completed once the funds have reached our account.

Business Involvement

This Campaign offers shares for sale in business that is not directly involved in this Campaign or the sale. As a result, the Campaign and post-investment experience, including investor rights, will differ from a business-led campaign on Republic Europe. Most notably, the business will not engage with investors in the discussion forums both during and after the sale or provide any updates to investors.

Learn more here

Payment options

We are not able to accept Pay by Bank payments for investments into this sector. You can pay for your investment with a card payment, by creating a bank transfer or by using funds in your investment account. Your investment will only be completed once the funds have reached our account.

Drawdowns

This campaign offers the ability to pay for an investment by drawdowns.

Security Token

A security token is a digital asset that represents ownership or other rights. It is a digital form of traditional investments. In the future, you may be able to trade your investment through compatible exchanges.

Warning

You are following a link outside of europe.republic.com.

None of the information in constitutes part of the campaign and it has not been approved or reviewed by Republic Europe.

ContinueCancel