Estonian cleantech Efenco raised €1.3M from business angel Ivo Remmelg and other EstBAN investors

Estonian cleantech Efenco raised €1.3M from a founding member of EstBAN and venture partner of Finnish VC Superhero Ivo Remmelg and other business angels of EstBAN. The lead investor was Ivo Remmelg. 

Founded in Tallinn in 2015 by Kristjan Tiik, Aleksandr Nagornoy, and Aleksander Vlassov, the team created a chip HERC (high-energy ray ceramic chip) that assists in generating plasma during combustion (burning) in industrial boilers. The chips are installed inside of the boilers. During fossil fuel burning, the startup's technology helps increase conversion efficiency by over 18%, using cold plasma, which leads to a reduction of CO2 emissions. Currently, the technology can be implemented in the chemical, pulp, paper, and steel industries. According to the company, its technology will also improve hydrogen's combustion efficiency by up to 75% and natural gas by up to 40% using cold-plasma-assisted combustion.

The startup has already partnered with Adven, Thermory, Bepco, and others to realize with them pilot commercial projects. The company also received €3.2M in grants from the EU’s European Innovation Council (EIC) and Estonia’s Archimedes Foundation. In addition, Efenco has secured an equity commitment of €8M through the European Investment Bank by 2026. Efenco will use the investment to develop the product and integrate advanced materials. 

Earlier, Ivo Remmelg had already invested in Efenco, but the details of the deal were not disclosed. Recently, he has participated in a €380K round of Estonian biotech Gearbox Biosciences. His portfolio includes Fooddocs, Fractory, and Ridango. Ivo Remmelg exited Inzmo, Telegrupp, and some startups, which participated in the Estonian accelerator Startup Wise Guys.

EstBAN (Estonian Business Angels Network) is a syndicate organization of angel investors, founded in 2012.