Cooltech Applications, the first company to propose a global solution which is both ecological and industrial for the refrigeration and air conditioning markets using Magnetic Refrigeration technology, has recently raised €8 M of new capital from both its historic shareholders and two new investors: Demeter Partners and 123Venture.
‘This new fundraising will enable Cooltech Applications to finalize the industrialization of its thermal machine, which is established by the launch of a first line for ‘Series Production’, to enable sales to start by the end of this year as well as to accelerate its international commercialization ‘, announced Sophie Paturle, Partner at Demeter Partners.
Created in August 2003 and based near Strasbourg, Cooltech Applications has developed and industrialized through a € 20 M euro launch aid project - ‘MagCop’ which has been co-financed by France’s Oséo-ISI organization, as a truly authentic and rare rupture technology based upon Magnetic Refrigeration principles. The technology being industrialized addresses a wide range of applications in both the refrigeration and air conditioning markets - commercial refrigeration, industrial or domestic, air conditioning of vehicles and buildings – these varied global markets being measured in Billions of Euros.
‘Reducing the cost of creating ‘cold’ in its various forms has become an indispensible element of our modern global society, where its production and use is currently accompanied by pollution and an energy consumption that needs to be reduced’ added Sophie Paturle. ‘In eliminating completely the need for gas and reducing by half the electricity required for an equal performance in a classic system, the Magnetic Refrigeration technology certainly appears to be the only valid response to-date to face both environmental and economic challenges.”
‘Following an in-depth market study, we selected the industrial refrigerated counter sector as a first market entry point for commercial applications’, announced Christian Muller, CEO and Founder of Cooltech; ‘Production of cold in the supermarket chains represents up to 40% of the electricity consumed, in addition to the 15% of the total related logistic costs, hence magnetic refrigeration will generate an important economic advantage to our future client base. Followed with the supplying of the hybrid & electric vehicle sectors, which has battery performance issues leading to limitations in terms of autonomy, which is even further reduced by 30% if air conditioning is also functioning. The magneto caloric technology – with an inherent defrost capacity due to reversible functionality – appears to be one of the key facilitating technologies for the development of electric vehicles into mass market product, while equally applicable to hybrid vehicles, where it will significantly improve both the autonomy and ecological footprint. This, to cite only the two first markets we are going to target’.
‘This new fund raising round has provided the acceleration factor required to confirm Cooltech’s international leadership in the area of industrial magnetic refrigeration solutions, allowing the company to maintain an ambitious development strategy’ confirmed Jean-Michel Barbier, Managing Partner of TechFund Europe and fund manager of the AIRFI FCPR. ‘Its mastery of the magnetic refrigeration technology combined with a profound expertise in areas as varied as magnetism, mechanical systems, fluid & thermal dynamics as well as chemistry constitutes a real technological barrier. In addition, Cooltech Applications holds title to a very large number of international patents protecting these various technological elements’.
‘Cooltech Applications is the first company to have created an operational system where the performance required for industrialization has been proved and hence the only company actually engaged in commercializing a magneto-caloric Thermal machine. This machine has been conceived to be both simple in terms of architecture and modular, allowing a competitive unit price for the numerous potential applications while equally meeting the client based specifications, in particular temperature and power. Cooltech Applications represents a rare opportunity in France to develop a completely new eco-industry’, added Marc Guittet, Partner at 123Venture.
Demeter Partners is the leading investment capital firm in Europe for Cleantech with more than 350 M€ under management. Based in Paris, it was founded in 2005 and is owned by the management board. Demeter Partners specializes in eco-industries (water, air and waste treatment, site remediation,) and eco-energies (energy efficiency, renewable energies...) mostly for companies located in France, Germany and Spain. So far, Demeter has invested in more than 40 companies. Demeter invests within a wide range of companies: from innovating start-ups to mid-cap companies and supports them at all stages : creation, growth, transfer, with unitary mandates ranging from 0.5 to 15 M€.
Demeter has offices in Paris (France), Madrid (Spain) and Berlin (Germany).
123Venture is an independent Fund specialized in renewable energy and real estate. With over 815 M€ of funds under management, 123Venture has become a sectorial reference in funding of SME’s, small and medium sized enterprises. 123Venture has participated in over 260 SME investments in 9 countries.
TechFund Europe is a private equity firm focusing on early-stage investments in breakthrough technology companies. Investments are focused on core and enabling technology including digital media, networking, communications, and energy. TechFund’s objective is to identify innovative companies early in their corporate development and assist those companies to rapidly build viable businesses, sustain growth over many years, and create enduring enterprises. TechFund Europe leverages its network of strategic partners and proactively assists its portfolio companies in accelerating their development. TechFund Europe Management has a pan-European focus and co-manages parts of FCPIs (Fonds Commun de Placement dans l’Innovation) and FIPs (Fonds d’Investissement de Proximité).
Cooltech Applications is the first company in the world to propose a solution which is ecologic, economic and industrially viable, targeting the global refrigeration and air conditioning markets using magnetic refrigeration technology. Created in 2003 and based next to Strasbourg’s airport, the company employs 33 odd staff of whom the majority are high level engineers with either scientific or industrial backgrounds. Heavily supported by the French Government’s innovation arm - OSEO, Cooltech Applications has been engaged since 2010 in a 20 Million Euro industrialization project ‘MAGCOP’. This program, actually now in its final phase, has permitted the industrial development and production line to be developed for a thermal machine to be produced in volume.
Since its debut, the company has been financed by the investment funds: ACE Management, TechFund Europe (FCPR Airfi) & Sodiv in addition to the two significant industrial groups: Marcel Dassault Industrial Group and Erasteel Cie from Eramet Group. Erasteel, as MagCop project partner, develops high performance magnetocaloric materials such as lanthane-based alloys, an essential element of the magnetic refrigeration technology.