ElectronX, a new energy exchange created to help accelerate the U.S. grid transition to renewable sources, announced it raised a $10 million strategic investment round led by Systemiq Capital. Equinor Ventures, Shell Ventures, and Innovation Endeavors participated in the round. Former U.S. Commodity Futures and Trading Commission (CFTC) Chairman J. Christopher Giancarlo also joined ElectronX as a strategic adviser.
ElectronX’s newest investors reflect a growing global need for regulated financial infrastructure in which power providers, consumers and energy innovators can manage volatile short-term price exposure to electricity. And in June 2024, ElectronX announced it had secured a $15 million seed round led by Innovation Endeavors.
When the CFTC approves ElectronX to operate as a regulated derivatives exchange, it will provide granular derivatives products featuring fully collateralized and centrally cleared contracts that enable electricity market participants of all sizes to hedge intraday price risk more precisely on a highly accessible platform.
And Giancarlo, who served as a CFTC commissioner from 2014 to 2019, and as chairman from 2017 to 2019, joins ElectronX’s roster of industry veterans appointed to help guide the exchange in markets, regulatory and corporate matters.
Upon regulatory approval, ElectronX will provide intraday bounded futures and binary options for the Electric Reliability Council of Texas (ERCOT) market, with additional geographies pending.
KEY QUOTES:
“Unprecedented demand for electricity, particularly from high-volume consumers like data centers, continues to strain the capabilities of the shifting U.S. grid. The resulting price volatility is now a critical worldwide challenge for the energy ecosystem. This follow-on strategic round, with participation from Equinor’s and Shell’s venture arms—both globally significant energy corporations—is a consequential step for ElectronX that greatly strengthens our ability to develop market-driven solutions for the industry at large. Systemiq Capital’s deep climate tech knowledge and power markets expertise will also help sharpen our approaches to technology, product and market structure.”
“I look forward to collaborating with our new investors, and continuing to work with Innovation Endeavors, as we build the necessary financial tools to support increased investment in clean energy and grid modernization.”
“I’m very pleased to welcome Chris to our advisory board, where his respected tenure in regulated markets will no doubt make a material impact.”
– Sam Tegel, CEO of ElectronX
“We are thrilled to invest in ElectronX and partner with Sam and the leadership team to accelerate the expansion of intraday power trading. Over the past few years, intraday power markets in Europe have seen remarkable growth, revolutionizing energy trading and enhancing market flexibility and responsiveness. By optimizing the integration of renewable energy and storage, intraday trading is pivotal to building a cleaner, more efficient energy grid. We are proud to support a platform driving this transformation in the U.S., unlocking innovative opportunities for the future of green energy.”
– Irena Spazzapan, managing partner of Systemiq Capital
“Equinor Ventures is pleased to make a new investment in ElectronX. We look forward to supporting the team in commercializing critical trading infrastructure and delivering liquidity amid increasing volatility to strengthen growing renewables portfolios.”
– Katherine Peachey, head of Equinor Ventures
“Shell Ventures aims to accelerate the energy and mobility transformation by investing in companies that electrify our energy system. We are excited to support ElectronX as they aim to address key challenges in the U.S. power market. With the increased price volatility and the growth of intermittent renewable energy sources, we believe that ElectronX offers an innovative building block for the future energy system.”
– Quennie Co, managing partner of Shell Ventures
“The energy and climate industry interest in ElectronX’s premise reflects the ongoing need for innovation in regulated financial derivatives markets that I’ve long championed,” said Mr. Giancarlo. “Sam and his team are addressing an acute and growing concern with electricity pricing that affects millions of American businesses and individuals. I look forward to working with ElectronX through the regulatory process and beyond as they build an exchange that not only serves current energy traders, but also brings participants to derivatives markets.”
– Former U.S. Commodity Futures and Trading Commission (CFTC) Chairman J. Christopher Giancarlo
