Fund buying Tesla Megapacks and Pod Point IPO bring batteries to London

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Harmony Energy will buy batteries from Tesla (AP)

Investors are being given the chance to back batteries and battery power through two new London floats.

Harmony Energy Income Trust, a new fund investing in battery storage infrastructure, and Pod Point, the electrical vehicle charging business, both announced plans to IPO on Monday. Both companies pitched their floats as opportunities for investor to cash in on the race to reach net zero emission

Harmony Energy is seeking to raise £230 million to invest in ‘shovel ready’ battery storage projects underpinned by a contract with electric car maker Tesla. Harmony has struck a deal to buy Tesla’s Megapack batteries, which can be used for 2 hours, and use the car maker’s Autobidder AI software, which manages energy trading with the National Grid.

The batteries will absorb excess renewable energy at times of low demand and then sell it back to the grid at times of high demand.

“The company offers investors the opportunity to invest in a rapidly growing part of the renewables sector, as wind and solar renewable energy projects increase, so too will the need for battery storage energy systems,” said Norman Crighton, prospective chairman of Harmony Energy Income Trust, said.

Separately, Pod Point announced plans to list in London. The company, founded in 2009, installs and runs electric vehicle charging infrastructure across the UK. Pod Point has installed over 89,000 home charge points and 13,000 commercial units, many of them through partnerships with companies like Barratt Homes, Lidl, and Tesco. Revenues grew 123% in the first half of 2021 to £26.5 million.

Pod Point’s home charging points (Pod Point)

The IPO is a spin-off from EDF Energy, which acquired a majority sake in Pod Point through a joint venture with Legal & General in February 2020.

Chief executive and founder Erik Fairbairn said the IPO would be a “massive milestone” for the business. Just 55 electric vehicles were sold in the entire year Pod Point was founded but now around 20% of new car sales have some form of charging. Fairbairn said the market was “accelerating extremely rapidly.”

“It really is an area that is starting to be interesting for capital markets,” said Fairbairn.

Pod Point represents between 50% and 60% of the home charging market. Funds raised in the IPO will be used to continue to invest in expanding what Fairbairn terms the “ecosystem of charging” to allow drivers to top up their cars wherever they are.

“We want to put a Pod Point in everywhere you park,” he said.

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