Tallarna and ABB Strengthen Strategic Partnership With Investment Deal
This partnership will address the awareness, confidence, and execution gap facing customers’ net zero journey.
LONDON, England, NEW YORK, USA, and STOCKHOLM, Sweden – 22nd November, 2022
Tallarna, an award-winning climate tech company for the built environment, today announced that it has closed a strategic partnership and minority investment deal with ABB, a technology leader in electrification and automation. This signals a joint commitment to a software-led, risk-managed approach to accelerate net zero.
ABB’s solutions connect engineering know-how and software to optimise how things are manufactured, moved, powered, and operated. Building on more than 130 years of excellence, the company’s expertise will be indispensable for the next stage of Tallarna’s growth.
Since launching four years ago, Tallarna has built a talented and loyal team, and has experienced wide-scale traction across the real estate sector – encompassing social housing providers, energy infrastructure developers, and green lenders. With ABB’s backing, the company’s scope will be extended to Energy Service Companies (ESCOs) serving commercial and industrial organisations.
Tallarna’s AI platform, KESTREL, makes decarbonisation projects a reality by aligning what can be achieved from an engineering perspective with what can be insured and funded. By finding the commonality between decision makers, the company opens the door to a new era of scalability. Tallarna’s software is integrated with the related underwriting processes of AmTrust Financial Services, a global specialty property and casualty insurer, who is also an existing investor. Together, the companies have created a unique Energy Savings Insurance product which enables customers to access project investors integrated into Tallarna’s platform.
As the climate and energy crisis grows, decision makers need the right tools to lower their emissions and operating costs. ABB’s deep knowledge of equipment performance and innovative electrification technology will enhance Tallarna’s existing capabilities. Coupling ABB products with performance insurance will give customers the confidence to action their sustainability journey.
“Never before has there been such a need for clear insights into decarbonisation possibilities and how to deliver them. Cross-industry collaboration is key to ensuring a sustainable future for all. As such, we are delighted to be working more closely with the Tallarna team and to support their launch in the ESCO market,” Giuseppe Casagrande, Global Digital Leader at ABB Electrification, Smart Power Division.
“As a company, our mission is to empower sustainability in all its forms – environmental, economic, and social. ABB shares this perspective, and we are excited to work with them on addressing the awareness, confidence, and execution gap facing customers,” Tim Meanock, CEO at Tallarna.
ABB’s investment and partnership will guide Tallarna in growing the market – taking decarbonisation to new heights for commercial, industrial, and energy infrastructure providers.
ESCO customers will benefit in 4 key ways:
1. Lower the barrier to entry for decarbonisation projects
Tallarna understands customers’ decarbonisation options using minimal data and, initially, without the need for connected devices. This capability will be augmented with ABB’s knowledge of innovative energy optimisation solutions in industrial settings.
2. Point a route to scale for customer projects
KESTREL translates engineering challenges into risk metrics and is used to underwrite and distribute Energy Savings Insurance. By adding ABB’s insights to this modelling, the companies will further mitigate risk while lowering costs and carbon emissions. Removing the performance risk from ESCOs and building owners encourages greater project scope and facilitates a service model, driving a route to scale.
3. Enable the market to move faster by overcoming barriers to execution
Guaranteed energy outputs can be financed, with the realised bill savings repaying the project costs. Not only does this deliver new funding sources for developers, but it creates financial assets for Tallarna’s panel of project investors. This provides a key mechanism for execution.
4. Ensure security of technology supply and performance
Tallarna can specify suitable technology products at the project exploration stage. These include offerings from a range of providers, including ABB. Technology is pre-validated for insurance and finance terms, and can be onboarded to provide security of supply, performance, and pricing.