15th September 2008
CAT.154

Carbon Trust and Catapult Venture Managers invest in innovative cooling systems company 4energy

Carbon Trust Investments and Catapult Venture Managers Ltd have invested £1 million each in 4energy, a UK based company. 4energy’s innovative cooling systems have been proven to reduce the energy used to regulate the temperature of critical industrial electronic equipment by up to 90%. These technologies have been installed by companies such as Vodafone, EDF Energy and Scottish Power Energy Networks.

Telecommunication, computing and ancillary infrastructure located in equipment rooms needs to be kept at regulated temperatures in order for it to function correctly. The traditional approach has been to use conventional air conditioning systems such as vapour compression refrigeration, to maintain the correct temperatures. 4energy systems remove the need for installed air conditioning by using passive cooling technologies with few moving parts. This leads to increased levels of reliability and much reduced energy consumption and maintenance.

A great opportunity exists for 4energy to adapt these technologies for a wider international market, especially those countries with rapidly expanding telecommunications infrastructures such as India, China, Russia and Brazil.

Also, in the UK, energy for cooling of data centres and server rooms is estimated to be up to 15% of the carbon footprint of industrial buildings and the 4energy approach could also provide cooling solutions in these areas.

4energy will therefore use the secured funding to roll-out global trials of its telecommunication base station cooling technology, extend its distribution network and continue investment in cooling breakthroughs in significant areas such as data centres.

Jonathan Bryers, Investment Partner at CT Investment Partners said:
“With air conditioning a significant and rising cost to businesses around the world and companies facing increasing pressure to reduce emissions, we believe we will see increasing demand for 4energy’s technology in the years’ ahead. It has many attractions to businesses given the low capital costs and low cost retrofit capability.”

Pete Le Noury, Investment Director with Catapult Venture Managers commented:
“We originally backed this management team as an early stage investment and have been impressed with the way they have developed, trialled and installed their cooling technology with a number of significant infrastructure companies - clearly demonstrating large energy and CO2 savings. 4energy is now well positioned to roll out their passive cooling technology with global infrastructure partners and this investment allows the management to deliver against those customer requirements.”

Pat Tindale, Managing Director of 4energy said: “Increasingly we’re seeing a real desire from companies to avoid wasting energy on unnecessary cooling – they want to ‘try something different’. Since 2005 we’ve worked closely with customers to develop and deploy disruptive technologies to cool their equipment. It’s meant starting from first principles but now we can see these simple technologies being installed each and every day.”

Simon Mendham, Energy Manager from Vodafone UK said: “We’ve worked with 4energy for the last two years and they have delivered practical alternatives to our current cabin cooling solution. We’re installing their equipment across our UK network; this will be one of many initiatives that will help us meet our 50% CO2 reduction targets over the next 12years.”

-Ends-

Notes to editors

This information is being made available to you as part of the Carbon Trust’s general activity of promoting deployment of, and investment in, low carbon technology. The Carbon Trust does not give investment advice and you must take your own view on the merits of, and the risks attached to, any investment decision you may undertake. You may wish to obtain professional advice.

* CT Investment Partners are available for interviews. Please contact the Carbon Trust Press Office on 020 7544 3100 or carbontrust@fishburn-hedges.co.uk

About CT Investment Partners LLP

• CT Investment Partners LLP is the FSA authorised and regulated venture capital advisory firm, jointly owned by Carbon Trust and its executives, which advises Carbon Trust Investments.

About Carbon Trust Investments

• Carbon Trust Investments is the venture capital investment subsidiary of the Carbon Trust. Carbon Trust Investments has invested in 12 investments over the last 5 years, with two of these companies - Ceres Power PLC and CMR Fuel Cells PLC - having listed on AIM. Other portfolio companies include Pelamis Wave Power Ltd, Heliswirl Technologies Ltd, Natural Buildings Technology Ltd, Whitfield Solar Ltd, Acal Energy Ltd, CamSemi Lts plc, Green Biologics Ltd plc.

About the Carbon Trust

• The Carbon Trust is an independent company set up by government in response to the threat of climate change, to accelerate the move to a low carbon economy by working with organisations to reduce carbon emissions and develop commercial low carbon technologies. The Carbon Trust works with UK business and the public sector through its work in five complementary areas: insights, solutions, innovations, enterprises and investments. Together these help to explain, deliver, develop, create and finance low carbon enterprise.

• The Carbon Trust is funded by the Department for Environment, Food and Rural Affairs (Defra), the Department for Business, Enterprise and Regulatory Reform (BERR), the Scottish Government, the Welsh Assembly Government and Invest Northern Ireland.

• For more information on the Carbon Trust visit www.carbontrust.co.uk or call the Carbon Trust Advice Line on 0800 085 2005.

About Catapult Venture Managers Ltd

• Catapult Venture Managers Ltd is a leading private equity fund manager with one of the largest investment teams in the Midlands operating from offices in Birmingham and Leicester. With £80m in funds under its management, Catapult seek equity investment opportunities from £200k to £2m for growing businesses. Contact details for Catapult are 0121 616 0180 (Birmingham), 0116 238 8200 (Leicester) or catapult@catapult-vm.co.uk

About 4energy

• 4energy, based in the East Midlands, develops, manufactures and sells energy efficient cooling systems that remove the need for traditional air conditioning from equipment rooms.

• Founded in 2005, the company has a track record in thermodynamics innovation, cooling system integration and building services installation.

• For more information, please visit www.4energy.co.uk or call 4energy on 0044 115 9372710

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