Caterpillar has joined a $20m group investment into the similarly US-based energy firm Powerhive to raise equity for its development of practical energy solutions for emerging markets.
The collaboration with Powerhive will lend the strength of Caterpillar’s own experience in emerging markets and technical expertise to the former’s pioneering efforts in so-called ‘microgrid’ solutions.
“Caterpillar’s global reach and vast network of local partners will unlock new opportunities for electrification in remote, underserved regions,” said Powerhive CEO Chris Hornor. “We’re excited to work with a company committed to a broad energy portfolio and sustainable development.”
Powerhive leverages a proprietary technology platform to develop and operate its renewable, scalable ‘microgrids’, which aim to supply reliable, affordable electricity to off-grid communities and improve the potential for rural economic development.
The recent injection of financing will support Powerhive’s global expansion and continued growth in East Africa, where the company has operated rural microgrids since 2012.
In the past year, Caterpillar has also invested in Fluidic Energy for energy storage and entered an alliance with First Solar to develop a photovoltaic solar solution for use in microgrid applications.
In December, Powerhive also hit the headlines when it appointed Leonardo DiCaprio as an inaugural member of its strategic advisory board.
DiCaprio said: “We have the ability to transition our world to 100% clean, renewable energy, using existing techniques, within our lifetime. Powerhive’s efforts will allow hundreds-of-millions of people to benefit from energy access without increasing greenhouse gas emissions.”
