Climate Insider Brief:
- Candela raised an additional $14 million in its Series C round, bringing its 2024 funding total to $40 million.
- Led by SEB Private Equity, with support from EQT Ventures and KanDela AB, the funding will enable Candela to scale production of its electric hydrofoil vessels to meet growing demand, targeting the $15 billion electric ferry market and advancing waterborne decarbonization.
- Candela’s electric hydrofoil technology, exemplified by the P-12 ferry, reduces energy consumption by 80% while offering faster, smoother, and more cost-efficient travel.
PRESS RELEASE – Stockholm, Sweden / November 21, 2024 – Announcing an additional $14M raised in its Series C round, Candela has secured over $40 million in funding in 2024. The investment will enable Candela to meet the soaring demand for its groundbreaking zero-emission vessels.
Candela has reached a milestone with the sale of its first Candela P-12 to the United States, where it will operate on Lake Tahoe. The company is well-positioned to transform the $15 billion market for electric ferries.
“This is the dawn of a zero-emission revival in waterborne transportation,” says Gustav Hasselskog, Candela’s founder and CEO.
Globally, waterborne transport accounts for 3% of greenhouse gas emissions—a challenge Candela aims to tackle with its revolutionary electric hydrofoil technology. This innovation enables operators to switch to sustainable electric vessels, providing shorter travel times, more frequent departures, enhanced comfort, and significantly reduced operational costs compared to traditional ships.
The new $14 million investment is led by by SEB Private Equity, a global Private Equity investor, with participation of existing investors EQT Ventures and KanDela AB. This brings Candela’s total funding for 2024 to $40 million, after a previous round this year.
“This investment, made during a challenging time for many companies, is a testament to Candela’s technology and its unique ability to solve the pressing issue of decarbonizing transport,” adds Hasselskog.
”We are thrilled to partner with the Candela team,” says Anders Jöngard, Investment Director at SEB Private Equity. “We’re impressed by the journey Candela has made in bringing cutting-edge innovation to serial production, including launching the world’s first electric hydrofoil ferry. As pioneers in emission-free transportation, Candela is setting new standards. We believe that the transition to a fossil-free economy will unlock significant growth opportunities, and we are committed to supporting Candela’s expansion for a more sustainable future.”
The funding comes as Candela’s order book continues to grow rapidly. Recently, the company introduced the world’s first foiling electric ferry, the Candela P-12, into Stockholm’s public transport system. Here, the P-12 has already demonstrated its ability to halve commute times and showcase the potential to eliminate fossil fuel reliance in city transport, where most emissions come from commuter vessels.
With a service speed of 25 knots, the P-12 is not only the fastest electric vessel in operation globally but also outpaces Stockholm’s diesel fleet. Thanks to a speed exemption due to its low wake signature, the P-12 can travel through the city center, linking suburbs with the capital.
Candela’s key innovation lies in its C-Foil, a computer-guided hydrofoil system with underwater wings that lift the hull above the water, reducing energy consumption by 80% compared to other high-speed vessels. This enables the rare combination of high speed and extended electric range.
Reinforcing its leadership in maritime electrification, Candela recently marked the production of its 100th electric leisure hydrofoil vessel. The company is now aggressively targeting the rapidly expanding global market for electric waterborne transport, which is projected to reach $15.32 billion USD by 2032.
Candela has also secured a contract to bring high-speed electric hydrofoil transport to Lake Tahoe, marking the U.S. debut of its technology. Additionally, the company has closed a fleet deal to electrify water transport for Saudi Arabia’s NEOM project and announced partnerships in Berlin and New Zealand, with more customers to be revealed soon.
The funds will be used to scale up P-12 production at Candela’s Stockholm facility. The P-12’s design, optimized for cost-effective road transport, enables worldwide shipping. Additional production capabilities are also under consideration.
“In every sector, we must move quickly to decarbonize. Our technology offers a strong economic incentive to switch to zero-emission fleets, while unlocking the potential for waterways to ease road congestion and enable multi-modal urban travel. This investment comes at a critical time for the planet,” Hasselskog concludes.
“Candela is pioneering the shift to fossil-free transportation on water, just as we’ve seen rapid progress on land. With their cutting-edge hydrofoil technology, the transition to clean, efficient waterborne travel is finally within reach,” says Lars Jörnow, Partner at EQT Ventures.
Source: Candela
Featured Image: Credit: Candela
