The Ontario Teachers’ Pension Plan participated in a round of financing for Stem, Inc., an artificial intelligence-powered energy storage company headquartered in California.
Activate Capital Ltd. led the $80-million investment alongside Ontario Teachers’ and Singapore-based investment company Temasek Holdings. The amount put forward by Ontario Teachers’ wasn’t disclosed.
“We are thrilled to have the opportunity to support the continued growth of an innovative company with a proven product like Stem,” said Andrew Claerhout, Ontario Teachers’ senior managing director for infrastructure and natural resources, in a press release.
“Ontario Teachers’ foresees that more investment is needed in the transition to a low carbon electricity system and expects that batteries will play a key role in the transition and in making the electric grid more sustainable. Ontario Teachers’ will support Stem’s growth by leveraging our strategic partnerships globally.”
Stem has more than 1,100 sites either operational or under construction with an average system size of 500 kilowatts. Using data, analytics and energy storage techniques, the company aims to make energy consumption more cost-effective and environmentally sustainable, according to Stem’s website.
“Ontario Teachers’ and Temasek have combined portfolios in excess of US$300 billion across the global commercial, industrial and real estate landscape,” said John Carrington, chief executive officer of Stem. “In addition, these firms bring deep relationships, a long history of investment in innovative platforms and credibility with global financial institutions. These elements will be critical in advancing our next stage of growth as we continue to lead innovation in the distributed energy industry.”
According to a release from Ontario Teachers’, Stem has had a strong year in Ontario and is looking to move forward with its global adjustment offering, specifically designed for the region, for use in improving the control of energy costs in manufacturing plants and industrial operations.