AFK acquires German energy storage specialist Commeo as part of Ampwell strategy

(Arendal, 7 April 2022) Arendals Fossekompani ASA (Arendals Fossekompani,
OSE:AFK) announces the acquisition of a majority stake in Commeo GmbH (Commeo),
a German company specializing in energy storage and energy management solutions,
as part of the Ampwell growth strategy.

"Energy storage is key in an increasingly volatile energy system where
intermittent wind and solar energy is introduced while coal, gas and nuclear
energy are phased out. Commeo fits well into our portfolio of companies in the
energy technology space and becomes an important piece of our new
battery-centered concept called Ampwell," says Ørjan Svanevik, CEO of Arendals
Fossekompani.

Arendals Fossekompani has entered into an agreement to acquire 54.9 per cent of
Commeo, a German energy storage and energy management specialist. Headquartered
in Wallenhorst, Commeo employs 50 people and reported revenues of EUR 3.5
million in 2021. The company is on a strong growth trajectory and plans to build
a new factory.

Commeo provides solutions for commercial and industrial energy storage by
manufacturing battery modules and rack systems, including control units and
software for monitoring and data logging. An example of how Commeo systems are
used is 'peak-shaving' energy consumption, which is to use energy from the
battery racks during peak price periods to avoid steep tariffs charged by the
energy system operators. 

Established in 2014, Commeo has developed its proprietary energy storage system
and is now in a position where the product can be manufactured on an industrial
scale. The production process and capacity will improve significantly with new
production facilities, where construction will start later this year. Commeo
systems typically range from 50 kWh to 1 MWh, but the modular plug-and-play
setup allows for even larger systems.

"Commeo's battery system is modular and therefore scalable from kW to MW scale,
which makes it suitable not only for commercial and industrial use, but also for
utility-scale applications. Commeo will support both industrial clients and the
energy grid itself," says Torkil Mogstad, Executive Vice President of Arendals
Fossekompani and responsible for building Ampwell, a new battery-centered
company recently established in Arendals Fossekompani. 

With Commeo as a key building block, Ampwell will combine hardware from Commeo
with competence and technology from AFK portfolio companies Volue and EFD
Induction, as well as start-up Cellect Energy, to build an eco-system for
battery technology and a Battery-as-a-Service business model.

"The battery system of Commeo is compliant with the highest standards for
functional safety, which allows the system to be placed in a human environment.
Usually, battery systems require a separate battery room or must be placed
outdoors," says Mogstad.

The parties have agreed not to disclose the transaction price. 

"We have high ambitions for our battery storage business and aim to become a
leading service provider in a European market that is expected to see tremendous
growth the next decade. Through Ampwell, we hope to be an even bigger part of
the energy solution in Europe, while creating substantial shareholder value for
Arendals Fossekompani's investors," says Svanevik. 


For more information, please contact
Ørjan Svanevik, CEO of Arendals Fossekompani, phone: +47 414 51 560


Arendals Fossekompani | www.arendalsfossekompani.no 
Arendals Fossekompani (AFK) is a green-tech investment company that owns energy-
and technology-related companies which enable the transition to a green economy.
AFK operates globally in several future-oriented industries, including 3D
printing, algo trading, satellite services, battery- and solar technology,
software, and digitization. Established in 1896, AFK has been a proud producer
of renewable hydro power for more than 100 years. The company is headquartered
in Arendal, Norway and listed at the Oslo Stock Exchange.

Commeo | www.commeo.com 
Commeo GmbH is a fast-growing company that sets new benchmarks in one of the
most important future technologies with its high-performance, innovative, and
individually tailored energy storage and energy management solutions, developed
by German researchers and engineers and manufactured in house. The latest
lithium-ion battery technology integrated into well proven, efficiently
air-conditioned housings, combined with the highest safety standards and a
modular design, enables perfectly matched and at the same time convertible
systems for a wide range of applications in all areas of industry, from
production to energy supply.

Ampwell
Ampwell is a new company established by Arendals Fossekompani to build an
eco-system for battery technology and a Battery-as-a-Service business model.