1 The EIC Accelerator Project

EIC Accelerator Program Overview

The EIC Accelerator program, part of the European Innovation Council (EIC), is designed to support small and medium-sized enterprises (SMEs) and startups in developing and scaling innovative technologies. It specifically targets deep-tech ventures that demonstrate a strong potential for market impact and the ability to address significant societal challenges. The program facilitates funding through a blend of grants and equity investments, aimed at de-risking innovation and enhancing the commercial viability of projects.

Funding Structure

The EIC Accelerator offers a two-pronged funding structure: grants and equity investments.

Purpose and Impact on the Ecosystem

The EIC Accelerator plays a pivotal role in the European DeepTech and startup ecosystem by fostering innovation and facilitating access to capital. It aims to bridge the funding gap that many innovative companies face, particularly in the early stages of development. By providing substantial financial resources and support, the program helps startups transition from research and development to market-ready solutions.

The EIC Accelerator not only supports individual companies but also contributes to the broader goals of enhancing Europe’s competitiveness in technology and innovation. By encouraging the commercialization of groundbreaking technologies, the program aims to stimulate economic growth, create jobs, and address critical global challenges such as climate change and sustainability.

Scaling and Private Sector Engagement

The EIC Accelerator is instrumental in helping companies scale by providing not only financial support but also strategic guidance and access to a network of investors and industry experts. As startups progress through the program, they receive coaching and mentoring that prepares them for subsequent funding rounds, thereby increasing their attractiveness to private sector investors. The program also facilitates connections with venture capitalists and corporate partners, crucial for securing additional funding and accelerating growth trajectories.

Case Study: EFENCO OU and the HERC Project

Company Overview: EFENCO OU is an Estonian company recognized as a winner of the EIC Accelerator program for its innovative approach to industrial carbon neutrality.

Project Acronym: HERC (Hydrogen Energy Resource Conversion)

Project Description: The HERC project focuses on reducing the reliance on natural gas and minimizing carbon emissions in industrial applications. The core innovation lies in the development of a novel Plasma-Assisted Combustion (PAC) technology, which transforms traditional industrial combustion processes towards a hydrogen-based alternative. This transition is critical for industries aiming to achieve carbon neutrality while maintaining energy efficiency.

Technology Basics and Background

The Plasma-Assisted Combustion (PAC) technology represents a significant advancement in combustion science. It utilizes plasma to enhance the combustion process by improving the ignition characteristics and combustion efficiency of hydrogen and other fuels. The use of plasma can lead to lower emissions of nitrogen oxides (NOx) and other pollutants, addressing regulatory concerns and environmental impacts associated with traditional combustion methods.

The HERC project aims to demonstrate how this technology can be integrated into existing industrial systems, thereby facilitating a gradual transition from fossil fuels to hydrogen. This not only supports carbon neutrality goals but also enhances energy security and sustainability in various industrial sectors. The project is aligned with European Union objectives for a greener economy, contributing to the overarching commitment to achieve net-zero emissions by 2050.

In summary, the EIC Accelerator program serves as a crucial mechanism for fostering innovation and supporting startups like EFENCO OU in their quest to revolutionize industries towards sustainable practices. Through its blended financing model and strategic support, the program empowers companies to develop transformative technologies that can significantly impact societal and environmental challenges.

2 The Funding Rounds

# Efenco: Funding Journey and Financial Growth

Efenco, an Estonia-based cleantech startup founded by Kristjan Tiik, Aleksandr Nagornoy, and Aleksander Vlassov, has made significant strides in securing funding for its innovative cold-plasma-assisted combustion technology. The company has developed HERC (High-Energy Ray Ceramic) technology, which they describe as "fire on turbocharge," capable of increasing thermal conversion efficiency by at least 20% and significantly reducing CO2 emissions.

Funding Rounds and Timeline

Efenco has successfully raised substantial funding through various rounds to support its growth and development: November 2023 Funding Round: Efenco secured a total of €4.5 million in funding, consisting of:

• €1.3 million from a round led by EstBAN Syndicate's Ivo Remmelg
• €3.2 million in grants from the European Union's European Innovation Council and Estonia's Archimedes Foundation

EIC Accelerator Funding: The company was selected for the EIC Accelerator program with a €10 million funding commitment to transform the energy industry. This followed their successful proposal submission in October 2022.

European Investment Bank Commitment: Efenco has secured an equity commitment of €8 million via the European Investment Bank, to be provided by 2026.

According to financial data, Efenco has raised approximately $4.96 million over six funding rounds, with their latest being a Grant-III for $3.47 million on November 16, 2023.

Investor Information

Efenco's investor profile includes:

• EstBAN Syndicate: Led by Ivo Remmelg, who also serves as the President of EstBAN and is an angel investor in the company
• European Innovation Council: Providing significant grant funding
• European Investment Bank: Committed to providing equity funding
• Archimedes Foundation: Contributing to grant funding

Ivo Remmelg has publicly expressed strong support for Efenco's technology, stating: "Efenco's HERC technology is one of the only new technologies that allow for the immediate reduction of CO2 emissions."

Growth and Development Plans

Efenco has outlined a clear timeline for its growth:

• 2025: Industrial piloting phase
• 2026: Full launch of retrofit solutions
• 2027: Development of OEM solutions
• 2028: Transition to mass production

The company plans to use its funding to: 1. Facilitate product engineering and integrate advanced materials

Commercial Partnerships

Efenco has already secured six commercial partners for scale-commercial pilot projects, including:

• Adven
• Thermory
• Bepco

The first of these partnerships aims to achieve 1,000 hours of continuous operation. Additionally, at least five other interested customers are waiting to deploy Efenco's technology.

Market Potential

Efenco is targeting significant market opportunities: - The global market value for combustion equipment in the natural gas industry is expected to reach €172.6 billion by 2028, with a 4.8% CAGR from 2021-2028

• The company calculates that its technology could be installed in 30% of gas boilers used in the EU for high-temperature industrial process heat applications
• With an 18% efficiency gain, this represents a potential 5% total reduction in the EU's energy consumption and carbon emissions from natural gas combustion

Efenco aims to eliminate the equivalent of 77 million metric tons of CO2 emissions by 2030, focusing on industries such as iron & steel production, pulp & paper production, and chemical & district heating.

No information regarding company valuation or exit events such as IPOs, buyouts, or acquisitions was found in the search results.

Sources: - Efenco: Home

• Estonian cleantech Efenco closes €4.5 million funding for low
• Efenco raises €4.5M - BeBeez International
• Efenco Stock Price, Funding, Valuation, Revenue & Financial
• Estonian clean energy production startup Efenco raises €4.5M for its

3 The Press Releases

Efenco OU: A Pioneer in Clean Technology

Efenco OU, an Estonian cleantech startup, has been making waves since receiving the European Innovation Council (EIC) Accelerator funding in October 2022. This funding is a testament to their innovative High Energy Ray Ceramics (HERC) technology, which is designed to enhance the efficiency of industrial furnaces and boilers by utilizing Plasma Assisted Combustion (PAC). This technology aims to reduce carbon emissions and natural gas consumption in industrial processes, contributing significantly to environmental sustainability.

Technology Advancements

Efenco's HERC technology is developed in collaboration with experts from various fields, including electronics, solid-state physics, nanomaterial-based emission electronics, cold plasma physics, and electrochemistry. This advanced technology allows for more efficient combustion of methane, hydrogen, or their mixtures, leading to significant reductions in fuel costs and CO2 emissions—up to 18% in some cases. The HERC chip is engineered for seamless integration into existing systems, making it an attractive solution for energy-intensive industries seeking to reduce greenhouse gas emissions while improving operational efficiency.

Funding and Partnerships

In addition to the €10 million funding from the EIC Accelerator, Efenco has also secured further investments. Recently, they raised €4.5 million led by EstBAN Syndicate, along with grants from Estonia's Archimedes Foundation. These investments are crucial for advancing Efenco's CPA PAC technology and expanding their team to drive further innovation.

Press Releases and Updates

While specific press releases on Efenco's website are not detailed in available sources, their achievements and funding milestones have been highlighted in various industry reports and announcements. The recognition from the EIC Accelerator and additional funding sources underscores Efenco's position as a leader in clean technology innovation, particularly in transforming industrial heat production towards more sustainable practices.

Team and Development

The EIC funding has enabled Efenco to enhance its team and accelerate the development of its HERC technology. This technology is poised to have a significant impact on reducing the environmental footprint of industries reliant on high-temperature processes, such as iron and steel, pulp and paper, and chemical manufacturing.

Conclusion

Efenco OU's success with the EIC Accelerator highlights their commitment to developing cutting-edge solutions for a more sustainable future. With continued innovation and strategic partnerships, Efenco is well-positioned to lead in the transition towards cleaner industrial practices.

Sources: - EIC Accelerator winners and statistics October 2022

• EIC Accelerator selects Efenco HERC technology for €10M funding
• Most Interesting Startups to Watch in 2024

4 The Technology Advancements

Overview of EFENCO OU

EFENCO OU, an Estonian cleantech startup, is known for its innovative approach to enhancing the efficiency of industrial energy conversion. The company has been actively working on its patented High Energy Ray Ceramics (HERC) technology, which aims to increase the combustion efficiency of natural gas and hydrogen, thereby reducing carbon emissions.

Recent Advancements

Since receiving the EIC Accelerator funding in October 2022, EFENCO has made significant advancements in its technology. The company raised an additional €4.5 million in late 2023, which includes funding from the EU's European Innovation Council and Estonia's Archimedes Foundation. This investment has been crucial for product engineering, focusing on integrating advanced materials to ensure durability, functionality, and compliance.

EFENCO's technology uses Plasma Assisted Combustion (PAC) to enhance reaction efficiency without requiring an external energy source, instead utilizing waste heat generated by combustion. This approach has shown energy and CO2 savings of up to 20% in pilot projects, such as with a major utility company in Tallinn.

Market Demonstrations and Pilots

EFENCO has demonstrated its technology through several commercial pilot projects. The company has lined up partnerships with companies like Adven, Thermory, Endover, and Bepco for these pilots. The technology can be installed in existing combustion boilers with minimal modifications, making it highly adaptable across various industries.

Improvements and New Features

The company continues to improve its HERC chip technology, aiming to develop more durable nanoceramic coatings suitable for demanding combustion environments. This ongoing research and development are essential for expanding the technology's applications beyond current industrial sectors.

Patents and Publications

While specific new patents or scientific publications since receiving the EIC funding are not detailed, EFENCO's technology was validated by scientists from the University of Tartu in 2016 and 2022, and it holds an EU patent (EP3280230). The company's advancements have been recognized through significant funding support from European institutions.

Conclusion

EFENCO OU has made substantial progress in enhancing its HERC technology, focusing on improving efficiency and reducing carbon emissions in industrial processes. The company's commitment to environmental sustainability aligns with global efforts to transition towards low-carbon technologies.

Sources:

• Efenco: Home
• Efenco | Goparity
• Roadmap - Efenco
• Estonian clean energy production startup Efenco raises €4.5M for its ...
• Efenco raises €4.5M - BeBeez International
• EIC Accelerator selects Efenco HERC technology for €10M funding ...
• An Estonian cleantech startup raises €4.5 million for low-carbon ...
• Startup of the Day: Estonian cleantech Efenco - AIN.Capital
• Estonian cleantech Efenco nets €4.5M to accelerate transition to low ...

5 The Partnerships and Customers

Efenco OU: Partnerships and Developments

Efenco OU, an Estonian cleantech startup, has been making significant strides in the energy sector since receiving the EIC Accelerator funding in October 2022. The company is dedicated to developing innovative clean energy conversion technologies, particularly with its High Energy Ray Ceramics (HERC) technology, aimed at enhancing combustion efficiency and reducing carbon emissions.

Partnerships and Customers

Efenco has established partnerships with several notable entities:

• Adven: A Finnish energy company specializing in sustainable solutions.
• Thermory: An Estonian company known for its sustainable wood products.
• Bepco: Another partner in Efenco's commercial-scale pilot projects.

These partnerships are crucial for deploying Efenco's HERC technology in various industries, including electricity generation, steel manufacturing, and district heating.

New Partnerships and Customers

There is no specific information available on new partners or customers. However, Efenco's existing partnerships are foundational for its ongoing pilot projects and technology rollout.

Nature of Relationships and Market Positioning

Efenco's partnerships are centered around deploying its HERC technology to enhance energy efficiency and reduce CO2 emissions in industrial processes. By collaborating with industry leaders, Efenco positions itself as a leader in the transition towards more sustainable energy practices. The partnerships enable Efenco to test and refine its technology in real-world settings, which is critical for scaling its operations efficiently.

Technology Advancements and Scaling

The partnerships and funding support are instrumental in advancing Efenco's technology. The company's cold-plasma-assisted combustion technology is being validated and improved through its pilot projects. The funding, including €4.5 million raised in 2023, will facilitate product engineering and accelerate the deployment of its HERC technology across different sectors.

The partnerships also aid in scaling Efenco's operations by providing access to diverse industrial environments where its technology can be applied. This exposure helps refine the technology, making it more adaptable and efficient for broader market adoption.

Future Prospects

By leveraging its partnerships and advancements in technology, Efenco OU is poised to make a significant impact on reducing carbon emissions in energy-intensive industries. The company's goal to remove 77 million tonnes of global CO2 emissions by 2033 underscores its commitment to sustainable energy solutions.

Sources

• Efenco: Home
• EIC Accelerator selects Efenco HERC technology for €10M funding
• Estonian clean energy production startup Efenco raises €4.5M for its Fire-on-Turbocharge technology
• Efenco raises €4.5M
• Startup of the Day: Estonian cleantech Efenco
• Efenco | Goparity
• Estonian cleantech Efenco closes €4.5 million funding for low carbon technologies

6 The Hiring and Company Growth

Efenco OU: Growth and Team Development

Efenco OU, an Estonian deep-tech startup, has been making significant strides in developing clean energy conversion technologies since receiving EIC Accelerator funding in October 2022. Here's an overview of their team growth and current developments:

Current Headcount and Team Size

As of now, Efenco's team size is not explicitly stated in available sources. However, they have a diverse team with key positions including a CEO, CTO, CFO, CCO, and various scientists and technologists.

Hiring Status

Efenco has open positions, as indicated on their website, suggesting they are currently hiring to support their growth objectives.

Team Growth

While specific growth metrics are not detailed, Efenco plans to increase its team size as part of its expansion strategy. The company is focused on industrial piloting in 2025, a retrofit launch in 2026, and OEM solutions in 2027, which imply a need for additional talent.

Key Positions Recently Hired

Recent hires are not explicitly listed, but Efenco's leadership includes key roles such as Leading Scientists (Aleksander Vlasov, Aleksandr Nagornoy), Technology Owner (Anton Ruzanov), Hydrogen Business Lead (Eva Talve), and Chief Technology Officer (Endo Viires).

Impact of New Team Members

New team members play a crucial role in helping Efenco scale and grow by contributing to the development and implementation of their innovative clean energy technologies. These additions are vital for meeting ambitious targets, such as reducing CO2 emissions significantly by 2030.

Major Changes in Management or Founding Team

There are no reported major changes in the management or founding team since the funding. Kristjan Tiik remains a key figure as the CEO, alongside other core team members.

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Sources: - Efenco: Home

• Our Team - Efenco
• Efenco - Products, Competitors, Financials, Employees ... - CB Insights

7 The Media Features and Publications

Media Features and Public Presence of EFENco OU Estonian cleantech innovator EFENCO OU, an EIC Accelerator grant recipient, has gained visibility through strategic media coverage and event participation. The company’s HERC technology, which enhances combustion efficiency for industrial heating applications, has been highlighted in cleantech-focused PR campaigns and financial announcements.

• Media Coverage:
• Business Insider featured EFENCO’s fundraising efforts, including details about its pitch deck and €4.5M funding round.
• Black Unicorn PR, which represented EFENCO, secured over 70 media placements for clients in similar sectors, though specific articles beyond the fundraising announcement remain unspecified.
• Podcasts/Interviews:

While no direct podcasts featuring EFENCO’s team were identified in available records, CEO Kristjan Tiik has been photographed alongside investors in promotional materials.

• Conferences & Events:
• The company’s technology aligns with themes discussed at the Eurogas Annual Regional Conference 2025 (Tallinn), focusing on Estonia’s energy transition and renewable gases. However, explicit participation by EFENCO is not confirmed.
• As a pre-revenue startup preparing industrial pilots (e.g., with partners Adven and Thermory), EFENCO likely engages in sector-specific networking events to promote its HERC solutions.
• Publications:

Academic or industry publications directly naming EFENCO are not evident from available data. The company emphasizes technical milestones via press releases and project updates on crowdfunding platforms like GoParity.

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Sources

• Clean energy production startup Efenco raises €4.5M
• Efenco OÜ | EuroQuity
• Efenco: Home
• Eurogas Annual Regional Conference
• Efenco | Goparity