Norsepower secures €28m funding for Rotor Sails expansion

The series C round was led by investments from French asset manager Mirova's impact private equity Mirova Environment Acceleration Capital fund, along with The Finnish Climate Fund (Ilmastorahasto), OGCI Climate Investments, Nefco – The Nordic Green Bank, Tesi, and Power Fund III.

Norsepower’s modernised Flettner rotor systems generate thrust by rotating cylindrical sails on the deck of a vessel, cutting fuel use and emissions. The company was founded in 2012 and has had Rotor Sails deployed for over eight years, totalling 250,000 operating hours.

High profile shipping firms have Norsepower systems installed or on order, including MOL, Vale, BHP, Bore, Sea-Cargo, Scandlines,  CLdN, and Nippon Marine. The company said that verified data show fuel consumption savings of 5-25%.

The latest funding round will be in the form of equity financing and loans. The funds are earmarked for accelerating Norsepower’s scale of production to help meet growing demand. R&D will also be shored up, along with marketing, recruitment, and its sizeable intellectual property portfolio.

 Tuomas Riski, CEO, Norsepower, said: "The additional funding from one of the world’s leading sustainability investors is a massive leap in the right direction and a clear vote of confidence in our brilliant team, innovative technology, and the overall trajectory of our business.

Related:Wind propulsion regulation lags industry ambition

“With over 30,000 vessels globally that can benefit from our product, our scale-up ambitions are bold but realistic. It’s a win-win for everyone, including the planet.”

Youssef Belatar, Investment Director at Mirova, said, “With this first investment outside of France, the Mirova Environment Acceleration Capital Fund goes one step further to accelerate the scaling of innovative environmental solutions with positive impact. We are thrilled to support Norsepower in their journey to empower the shipping industry towards reaching the goal of zero carbon emissions, and together play an active role in the environmental transition.”

Paula Laine, CEO at The Finnish Climate Fund (Ilmastorahasto), said: “Shipping faces international regulatory and public pressure to adopt more sustainable practices, and we recognise the importance of technology in tackling this challenge and Norsepower’s rotor sails are an immediately available solution, especially for emissions-intensive ocean tankers. A key factor in our decision-making is impact and Norsepower’s ability to cut CO2 emissions by 5-25 % or even more in good wind conditions.”

Iain Fergusson, a Board member of Norsepower and General Counsel of Climate Investments, added: “There’s a pressing need to facilitate more deployments and funnel investment into decarbonising shipping where, as Norsepower is demonstrating that innovation is already delivering meaningful fuel and emissions savings for global operators. We are delighted to expand our backing of Norsepower and look forward to driving further adoption, expansion, and impact.”

Related:MOL and Vale to install Norsepower rotor sails on bulker