ABB and Tallarna enter into a strategic partnership and investment agreement

ABB and Tallarna enter into a strategic partnership and investment agreement

ABB, a technology leader in electrification and automation announced on December 5 that it has entered into a strategic partnership and minority investment agreement with Tallarna Ltd, a UK-based climate technology start-up, with the aim of strengthening its Smart Power division’s digital portfolio for energy management.

The venture capital investment, the 10th this year, the amount of which was not disclosed, will be made through ABB’s private equity firm, ABB Technology Ventures (ATV). Since its inception in 2009, ATV has invested approximately $300 million in startups with synergies with the company’s portfolio of electrification, robotics, automation and mobility solutions.

Founded in 2018, Tallarna, a climate technology company for the built environment, set out to make large-scale decarbonization financially executable. It did so by combining data analytics, performance guarantees, efficient financing, and now works with residential and commercial building owners, energy infrastructure developers, and technology providers.

It has developed KESTREL, a data analytics platform to offer its clients decarbonization projects, assessing their energy savings, risks and financing capacity.

The AI software is integrated with the related underwriting processes of AmTrust Financial Services, a specialty multi-line insurer, which is also an existing investor in the company. Guaranteed energy savings are used to provide efficient long-term financing through Tallarna’s platform and reimburse project costs.

Tallarna was a winner of the ABB Electrification Startup Challenge 2021, a global competition for innovative companies that address the complex sustainability challenges faced by commercial buildings and industrial energy applications.

Giampiero Frisio, President of ABB’s Smart Power Division, explains:

“Companies are looking for investments that will deliver clean energy, cost savings, and resilience. To enable organizations to meet their sustainability commitments, we need technology that can help decision makers clearly identify priorities, offer simpler financing models involving financial institutions, and access capital faster with a higher level of confidence in financial returns and operating costs. We will help Tallarna in expanding the capabilities of their technology for the benefit of industrial applications.”

ABB was born from the merger in 1988 of two companies, ASEA, a Swedish electrical engineering company founded in 1883, and Brown, Boveri & Cie, an electrical engineering company. established in 1891 in Baden, Switzerland. Today, it is a technology leader in the fields of electrification, robotics, automation and motion.

Its deep expertise in equipment performance and innovative electrification technology will strengthen Tallarna’s existing capabilities while its support will enable it to expand its reach to energy service companies (ESCOs) serving commercial and industrial organizations.

Tim Meanock, CEO and co-founder of Tallarna, concludes:

“We created Tallarna with the goal of accelerating decarbonization in the built environment by supporting the entire value chain from funders to end users.Our software makes large-scale decarbonization financially viable by converting technical risks into financial risks, i.e. turning optimization projects into financial assets for investors. This collaboration with ABB will provide us with valuable industry insights and enhanced digital capabilities to empower commercial and industrial organizations.”

Translated from ABB et Tallarna concluent un partenariat stratégique et un accord d’investissement