For weeks, European energy markets have dominated the headlines. In the course of public opinion, energy trading has emerged as both complex and very important. This provides an opportunity for Enmacc GmbH from Munich to demonstrate the impact of its digital trading platform. The young German tech company is assuming a core role in German wholesale energy trading. In only a few years, they have established themselves as a digital alternative to traditional brokers and exchanges.
Enmacc has now announced a successful Series B financing round. This is an important step in the company’s growth, positioning them to expand their leadership in the European market, and accelerate the energy transition through efficient trading and market infrastructures.
Jens Hartmann, CEO of Enmacc, explains: “The energy markets are currently characterised by extreme price levels, unprecedented volatility and very low liquidity. This poses huge challenges for market participants. What is needed now, above all, are digital trading options that help participants expand their network of trading partners — and ultimately improve their liquidity. The current energy crisis shows that energy trading must evolve. It must become more digital and promote diversity in market structures. The energy transition can only succeed on the basis of efficient markets that provide economic incentives for decarbonisation.”
Quotes within seconds, from multiple partners
Enmacc enables over-the-counter (OTC) futures trading in gas, electricity, and green power certificates. The vast majority of German market participants — 240 municipal utilities, energy suppliers, traders, and industrials — already uses Enmacc’s platform for long-term sales, procurement, and price hedging. Indeed, around half of all gas and electricity volumes from municipal utilities are traded on Enmacc. Across Europe, Enmacc counts over 450 companies from 21 countries amongst its customers.
Enmacc’s USP is their proprietary solution for request-for-quote (RFQ) trading. This enables users share their trading interest with partners in seconds. In return, they receive competitive and tradable quotes from multiple counterparties, immediately.
This type of digital trading creates liquidity for traders, especially when traditional order books from exchanges and brokers only show a few prices. Market participants trade securely, efficiently, and quickly. Before Enmacc, trades were still mostly initiated and executed by telephone or email — leading to many inefficiencies.
Financing will expand both range of commodities and leadership role in Europe
Enmacc has now strengthened its financial position. By securing an eight-figure investment, it is positioned to expand its leadership role in Europe. In addition, Enmacc customers can soon trade a growing portfolio of commodities on the platform, besides gas and electricity. This upcoming ‘multi-commodity architecture’ enables the rapid use of digital infrastructure for trading additional products at an early market stage. In the short term, Enmacc will launch the trading of CO2 emission allowances and green energy certificates.
Lead investor in the current Series B financing round is Klima Energy Transition. This is a late-stage venture capital fund — from global investment banking and asset management firm Alantra — that recently closed at €210 million. Chevron Technology Ventures and existing investors also participated in the round. To date, Enmacc has been funded by prominent VCs including Cherry Ventures, Piton Capital, Illuminate Financial, and the 10x Group. More investors will join the already oversubscribed round in the next few weeks.
“Enmacc has impressively transformed gas and power trading digitally, quickly winning over a large customer base in a conservative market,” reports Bastien Gambini, managing partner at Klima Energy Transition. “We believe that the unique combination of superior technology and industry expertise will make Enmacc successful in a wide range of energy and environmental commodities trading. With its platform, the company is positioning itself as a global leader in energy trading and enabler of an accelerated energy transition.”
“Enmacc has the potential to increase liquidity in trading gas, power, and lower-carbon commodities. The technology is designed to enable new and smaller players’ access to wholesale markets. This could have an impact on both the digital transformation and energy transition,” said Jim Gable, vice president, Innovation and president of Technology Ventures at Chevron. “We are excited for this latest investment from our Future Energy Fund II, which focuses on low-carbon technologies with potential to play a critical role in the future energy system. We welcome Enmacc to this portfolio.”
About Enmacc GmbH
Enmacc is Europe’s largest OTC energy trading platform. Built by traders, for traders, enmacc digitises the energy trading process. Their digital marketplace enables members to trade faster, more widely, and with greater control. Enmacc is trusted by over 450 partners, and hosts a growing network of almost 2000 traders from various institutions — energy suppliers, industrial companies, energy trading houses, and municipal utilities.
Enmacc is now using its elevation in the European market to accelerate the energy transition. Moving beyond power and gas, the next few months will see environmental commodities — like guarantees of origin and carbon allowances — trading on the platform.
Enmacc was founded in 2016 and is headquartered in Munich, Germany. It has grown into a leading B2B technology firm, with a diverse and expanding team.
About the Klima Energy Transition Fund
Klima Energy Transition Fund is the result of a partnership between Alantra, a seasoned investment team in the energy sector and Enagás, a leader in the energy infrastructure segment and technical manager of the Spanish gas system. The 210M€ late stage VC fund takes minority stakes in companies located in Europe and North America with high growth potential in energy transition sectors such as low carbon solutions, smart power grids and markets, energy storage and technologies enabling a stronger penetration of renewables in the energy mix, digitalization of the whole energy equation, energy efficiency technologies and sustainable transportation.
About Chevron Technology Ventures
Chevron Technology Ventures (CTV) pursues externally developed technologies and new business solutions that have the potential to enhance the way Chevron produces and delivers affordable, reliable, and ever-cleaner energy. More information about CTV is available on our corporate page and LinkedIn.