Wello aims to enable about 10% of worldwide clean energy production by 2050 with the Penguin: the most durable, efficient device on the market capable of harnessing the power of ocean waves.
Who we are
Based in Espoo, Finland, Wello is the technology leader of ocean-based energy production. With over ten years of research, development and harsh-condition testing under the belt, in April-May 2019, Wello will deploy WEC 2, a commercial Penguin device, in Orkney, Scotland. Penguin’s solution for capturing energy from waves is unique and translates into infinite, renewable direct-to-grid electricity. Energy parks are created connecting various Penguin units, for scalable energy production to fit all needs.
Projections indicate that by 2050 over 10% of the global energy usage can be fulfilled by wave technology (source): the potential market for the Penguin is vast, as our solution is viable on almost any ocean coast. Rather than focusing on device manufacturing, Wello’s new strategy converge on what we call Penguin Core, a comprehensive package including design, licensing, control software and know-how for custom Penguin deployments at various sites around the globe.
Change in market entry strategy
Since the end of the first funding campaign, we have kept developing our technology and refining the strategy to market. Over time, it became increasingly clear that focusing on our strengths (design, tech, control software, and know-how), rather than manufacturing at scale, would be the way forward. That’s how we came up with the Penguin Core offering: a “complete kit” for building and operating Penguin devices and related wave-energy parks.
The provision of Penguin Core can be easily scaled, grants IP rights tied to specific sites and is customizable to each client’s needs.
In short, we have moved the focus from selling devices to selling our existing design and software, as well as knowledge and expertise.
The potential of wave energy
According to the Paris Climate Agreement, 184 countries need to contribute to keeping the global average temperature increase under 2ºC. Much of this effort depends on the quick replacement of fossil fuels.
Wind and solar power are already addressing the problem and investments into renewable energy are rapidly growing globally. However, the wind does not always blow and the sun does not always shine.
With over 75% of the planet’s surface covered by water, wave energy holds massive potential. Today, the technology to harvest wave energy is ready for deployment, and with scale, its cost will soon be lower than that of other renewables.
Energy production: a global challenge
The explosion in global population is putting current energy production patterns under severe strain. According to most scenarios (source) over the next twenty years, the demand for electricity for industrial and everyday use will increase by 28% (from 169,000 TWh/year to 216,320 TWh/year).
Currently, more than 60% of the electricity produced worldwide is obtained by fossil fuel combustion (source), a key contributor to carbon dioxide emissions, and consequently, climate change. Clean, affordable and efficient energy production is needed fast, and at a massive scale.
Why to invest in Wello?
- The need for stable, renewable energy sources is a global megatrend currently worth €1,426 billions (source) – we have the right product at the right time.
- Wello’s shift in market entry strategy enables a fast-scaling business model which allows us to focus on tech, efficiency, licensing, and support rather than manufacturing.
- Our core technology is ready for deployment, has proven survivability under stressful sea conditions, and is protected through patents. With sourcing developments and improved production, we expect to reduce the costs of a Penguin by 30% by 2020.
- Excellent track record in lowering energy costs – a trend we expect to contribute further in the coming years.
- Plans to build the Nusa Lembongan wave park are moving along nicely, with more contracts under negotiation.
- A multicultural team of bleeding edge tech experts, supported by experienced investors represented in the Board of Directors.
- Our investors: Fortum Oyj, VNT Management, Innovestor Ventures, Estlander Holdings Oy.
A bit of history
Heikki Paakkinen, the co-founder of Wello Oy, used to build model boats as a young boy, trying to figure out how they could propel themselves using just wave energy. A few years later, Heikki’s environmental ideology started to lay the foundation for some innovative work: an environmentally friendly device for energy production. He then began developing and building concepts for wave-based energy production that would work in perfect harmony with the ocean. Wello Oy was established in 2008 and the development of the Wello Penguin product line begun. The company expanded, getting new partners on board, all contributing to what is now a strong patented product (see attached campaign document regarding patents).
In 2015 the European Commission’s research and innovation program Horizon 2020 granted €17M for the Clean Energy From Ocean Waves (CEFOW) research project. Wello’s share of the project is €13M, 9 of which are EU funding. The first Penguin device of the project was deployed in winter 2017 in Orkney, by the rugged coast of Scotland.
In the past two years, Wello has received many inquiries for commercial wave parks all around the world. One of them, located in Indonesia, has been approved and is currently in the design phase. With 10 MW of installed capacity, the Nusa Lembongan site is currently the largest in-the-works wave-energy park in the world.
Since the last campaign
This is our second funding campaign on Invesdor. Much progress has been made since December 2017, and several more achievements are within reach.
- WEC 2, the latest Penguin production model, was launched for the Horizon 2020 European Project Clean Energy from Ocean Waves (CEFOW). Installation in Orkney, Scotland, is currently underway.
- Through prototype tank testing and engineering breakthroughs, WEC 3 power output has increased over 50% compared to other models in the last year alone; this means that Wello can now offer competitive solutions in every corner of the world.
- WEC 1, our first Penguin model, has completed its second year of continuous deployment in the Northern Atlantic, the longest period so far for a WEC device, withstanding extreme sea conditions without issues.