Electreon, Israel’s wireless ‘smart road’ technology start-up has raised NIS 40 million through a private equity and option placement and is preparing to bid for construction of the first 42-kilometre-long electric road in Sweden.
The startup, which is listed on the Tel Aviv Stock Exchange and develops wireless charging infrastructure to power electric vehicles (EVs), announced on Thursday that it had raised around NIS 18 million from a share sale. .
“The objective of this funding is to allow the company to participate in the largest electrification competition in Europe, which is taking place in Sweden and in which the company participates after having successfully overcome all the competition prerequisites”, said Oren Ezer, CEO by Electroon.
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Electreon said the funds will be used to prepare the startup’s application for the Swedish Transport Administration’s tender to build the country’s first permanent electric highway for heavy goods vehicles between Hallsberg and Örebro. The startup specified that it would be the longest electric road in the world.
This financing comes after Electreon passed the pre-selection phase to participate in the tender with Cobra, a Spanish construction company specializing in electrical works and civil engineering. The Swedish government is investing in creating electric roads as part of a goal to reduce carbon dioxide emissions from freight traffic.
Founded in 2013, Electreon has developed a charging system for EVs on the go using copper coils placed under the asphalt to transfer power from the electrical grid to the road and manage communication with oncoming vehicles. Receivers are installed in the floor of vehicles to transmit power directly to the engine and battery while vehicles are in motion, eliminating the issues of limited range and short battery life.
The Swedish government is expected to announce the results of the electric road tender at the end of the second quarter of 2023. After selecting the winner of the electric road tender, another separate tender is to be organized for the maintenance and operation of the electric road for a period of 15 years. The Swedish government has set 2025 as the deadline for completion of the electric road design and construction.
In Sweden, Electreon has already won the tender for the installation of a 1.65 kilometer electric section used by a bus and a truck on the 4.1 kilometer road that connects the airport to the city center of Visby on the island of Gotland.
Based in the Beit Yannai community in northern Israel, the startup has also entered into several partnerships in Europe to test its smart road technology in Germany, France and Belgium. In December, Electreon announced that its technology will be deployed in Germany’s first wireless public road project to power an electric public bus, in a deal worth €3.2 million.
About a year ago, the startup won a tender to build an electrical road system (ERS) on a public road in Detroit, the automobile capital of the United States – nicknamed the “Motor City” – under a program called the Car Charging Pilot. Inductive Vehicles announced by Michigan Governor Gretchen Whitmer. This program aims to test electrified roads that are expected to lead to greater adoption of EVs and promote environmental sustainability, according to the governor’s office.
Electreon also has an ongoing partnership with the City of Tel Aviv-Jaffa, which has expanded to include the large-scale commercial deployment of its wireless charging infrastructure to power electric buses in Tel Aviv, in conjunction with the company’s Dan .