Vancouver-based ocean tech startup Acel Power has closed $13.6 million CAD ($10 million USD) in Series A funding to scale up production of its battery-powered outboard boat engine.
The funding was led by Tau Capital, an Abu Dhabi, United Arab Emirates (UAE)-based venture capital firm focused on sustainable science and technology. Brad Allen, managing director at Tau Capital, is joining Acel’s board as a director as part of the deal. No other investors were disclosed in the company’s funding announcement.
In a statement, Anthony Liu, CEO and co-founder of Acel Power, said Acel’s latest funding round will allow the startup to accelerate its growth strategy.
Acel claims that its electric motors last five times longer than gas motors.
Founded in 2021 according to New Ventures BC, Acel Power designs and manufactures electric propulsion systems for the marine industry. The company is best known for its electric outboard motors, which include 50- and 75-horsepower models.
These electric motors are designed to offer a sustainable alternative to traditional gasoline engines. On its website, Acel claims its electric boat motors last five times longer than gas motors, and are quieter than typical boat propulsion systems.
According to a statement from Acel, the company’s motors can be found on recreational and commercial boats in North America and Asia.
Gas-powered motors emit hydrocarbons and nitrogen oxides that degrade air quality and contribute to smog. These motors also often discharge unburned fuel into the water, which can contaminate marine ecosystems with harmful chemicals.
Acel’s outboard motors are electric and powered by lithium-ion batteries. These types of batteries emit significantly less pollution compared to traditional gas-powered engines, but they are not without environmental impact.
RELATED: MarineLabs looks to bring safety to oceans following $4.5-million seed round
The mining of lithium, cobalt, and other metals used in these batteries often involves environmentally harmful practices that can lead to habitat destruction, water pollution, and carbon emissions.
Transport Canada, which regulates road, rail, marine, and air transportation in the country, is planning to undertake several regulatory initiatives over the next two years related to vessel pollution and marine environmental protection.
Proposed changes to the Canada Shipping Act, for example, would create a framework to provide greater protection of marine species and the marine environment from the impacts of navigation and shipping activities. This could result in “small impacts” on vessel owners, Transport Canada said in a statement in March.
“With the shift in environmental regulations and growing demand for sustainable solutions, Acel is exceptionally positioned to meet the market needs,” Allen said in a statement. “We are impressed by Acel’s patented technology, manufacturing capability, hardware-software integration and experienced leadership.”
The new funding will enable Acel to expand its mass production capabilities. It will also support the company’s research and development, operations, and sales efforts. Acel plans to introduce two new electric outboard motors, with 150 and 250 horsepower, to the market this fall.
Feature image source Unsplash. Photo by Mikael Stenberg.
