ABB Invests in HESStec

ABB announced a strategic minority investment in HESStec, a company based in Spain that specializes in hybridized energy storage system (HESS) and battery energy storage system (BESS) applications. With HESStec’s scalable and cutting-edge hybrid energy storage technology, the partnership will drive new product optimization and market expansion opportunities for ABB in connection with the recently announced BESS-as-a-Service offering. The investment was made through ABB Electrification Ventures, and financial terms were not disclosed.

As the latest addition to ABB’s growing innovation ecosystem, this investment will enhance ABB’s position in the rapidly growing energy storage market. With its hybrid energy storage technology based on battery cells and ultracapacitors, HESStec is best positioned to provide solutions that not only deliver economic and sustainability benefits to customers but also address power quality and reliability issues in commercial and industrial facilities, microgrids, and islands with its grid-forming capabilities.

Stuart Thompson, President of ABB’s Electrification Service division, said: “Our investment in HESStec expands our technological capabilities and reinforces our commitment to pioneering energy solutions. By incorporating HESStec’s hybrid storage technologies into our portfolio and combining it with our new BESS-as-a-Service offering, we’re engineering new ways for businesses to stay ahead and optimize energy use without prohibitive upfront costs. This partnership is an important step for ABB as we develop innovative business models to address the financial barriers to energy storage adoption, enabling customers to enhance resilience and establish financially-driven sustainability goals while maintaining their focus on what they do best.”

Founded in 2018, HESStec has 40 employees and specializes in designing, engineering, delivering, and operating BESS and HESS based on ultracapacitors and battery cells. The company’s solutions address critical energy challenges including EV fast-charging infrastructure, peak shaving for commercial buildings, power reliability for manufacturing, and optimizing renewable energy integration for industrial sites.

Eugenio Domínguez, CEO of HESStec said: “This investment by ABB marks a significant milestone in our growth journey. By combining ABB’s global reach and comprehensive electrification expertise with our specialized knowledge in energy storage systems, we can deliver more innovative and effective solutions to customers worldwide, helping them navigate the complexities of the energy transition. The collaboration with ABB provides us with an industrial vision, and capital committed to accelerate the deployment of solutions that will enable a stronger, more resilient and fully decarbonized grid. Moreover, we are enhancing our industrial capacity with a proprietary manufacturing plant and a one-of-a-kind megawatt-scale grid laboratory in Europe.”

ABB joins other investors in this funding round, including Suma Capital through its climate tech fund Net Zero Ventures, and Verbund, as well as existing investors including Elewit and RIC Energy Holdings. At the same time, the continued presence of two key shareholders is confirmed: Elewit, the technology platform of the Redeia group, and international developer RIC Energy.

This investment through ABB Electrification Ventures, the venture capital arm of ABB’s Electrification business area, is a key addition to ABB’s venture capital investments, reflecting the company’s commitment to building an ecosystem of innovative partners developing solutions that support productivity, efficiency, and sustainability. With this latest partnership, ABB Electrification Ventures has invested around $85 million in 16 startups since 2021. ABB Electrification Ventures is part of the group-wide venture capital investment framework, ABB Ventures. Since its formation in 2009, ABB’s venture capital unit, ABB Ventures, has invested around $450 million into startups that are aligned with its electrification, robotics, automation and motion portfolio.