In 2018, a group of energy and software experts in Northern Ostrobothnia conceived the idea of NGSESS (New Generation Smart Energy Storage System). However, the name didn't quite resonate, prompting Olli Nuutila, Co-Founder and CMO at Cactos, to brainstorm for a more memorable alternative. After contemplating various techy names, inspiration struck from an unexpected source—the prickly cactus sitting on his desk.
Drawing on the cactus's adaptive nature, thick skin, and proficiency in storing water and nutrients, Olli coined the name "Cactos" with a touch of Ancient Greek flair. Despite the name's origin, the company's roots are in Helsinki, with R&D and Production based in Muhos. Cactos is committed to designing innovative solutions for diverse business needs, expanding its team and products while staying true to its mission—delivering clean, sustainable, and robust energy solutions to everyone's doorstep.
Cactos is headquartered in Helsinki, Finland.
Recent Development
Cactos recently secured more than €26 million in equity capital as part of a larger €70 million investment initiative. The funding comes through Cactos Fleet Finland LP, the company's EU Taxonomy Regulation (SFDR) Article 8 investment entity, rather than directly by Cactos itself.
This dedicated investment fund, introduced four months ago, is focused on battery energy storage and aims to raise a total of €70 million, split evenly between equity and debt financing. The funds will be utilized to invest in smart energy storage units over a period of approximately two and a half years, with an expected operational lifespan of around 10 years. The funding initiative is led by OP Finland Infrastructure LP and the Finnish Climate Fund.
“We established Cactos Fleet Finland LP because the energy transition requires significant investment in infrastructure, especially in assets capable of participating in demand response and grid services,” said Oskari Jaakkola, Cactos founder and CEO.
“Battery energy storage systems are an excellent way to create more flexibility in consumption, as well as balance the grid as a whole.”
Best recognized for its innovative approach of reconditioning and repurposing used Tesla EV batteries for its initial market offering, Cactos has expanded its product range to now include fresh lithium iron phosphate batteries.
Nevertheless, it is evident that the company's software solution, Cactos Spine, is assuming an increasingly pivotal role in its overall development. This platform can construct an optimized matrix of battery units, providing clients such as logistics firm Logitri Oy with protection against electricity price fluctuations, the smoothing of local demand peaks, backup power options, and, where applicable, the optimization of a property's own electricity production.
“Large housing, real estate, and logistics companies need solutions to tackle, for example, large energy consumption peaks caused by simultaneous charging of multiple electric vehicles and to protect themselves from electricity market volatility. An energy storage unit together with our cloud computing service, Cactos Spine, automatically optimises these functions,” Oskari explained.
In December 2023, Cactos Fleet Finland LP reported owning 50 Cactos units. With the planned €70 million fund, the company plans a significant expansion, aiming to increase the number of units to over 1,000 in the coming years if all goes according to plan.
The creation of a fund within a startup is a relatively uncommon occurrence. However, in industries as substantial as those targeted by Cactos, significant capital is a necessity. The fund serves a purpose beyond being a means to purchase the startup's own products. Instead, it functions as a crucial financial vehicle to address the substantial capital requirements associated with the industries Cactos aims to serve.
