Aquilon Energy Services Inc., developer of the first collaborative cloud-based platform that enables buyers and sellers to automatically settle both physical and financial energy transactions, has raised $19 million during a Series B financing round. The Series B financing round includes investments from Citi, Goldman Sachs Principal Strategic Investments, Invenergy and Macquarie Group – and all four companies committed to use Aquilon’s Energy Settlement Network (ESN™).
“The companies investing in our firm have large trading and settlement operations and realized how we can automate settlement processes, strengthen financial controls, enhance risk management and improve efficiency,” said Jeffrey Wagner, founder and CEO of Aquilon Energy Services. “Their participation in the network will expand its reach and increase its value to users. This round of financing will allow us to not only grow our Energy Settlement Network™, but also enhance features and functionality for settlements with independent system operators (ISO) as well as transactions involving power, natural gas, crude oil, and refined products.”
Aquilon designed the ESN™ to address a long-standing industry need for automation to manage the large amount of data and information involved in energy settlements. It enables settlement departments at energy companies and financial institutions to track, review, and approve their transactions, identify discrepancies, and collaborate with counterparties to resolve exceptions within a single easily navigable interface.
An explosion of data in the energy industry
“As the growth of renewables drives the energy industry toward price changes every five minutes, the amount of data commodity operations professionals need to manage – and the speed with which they must do it -- is skyrocketing,” Wagner said. “As a result, the time critical yet manual settlement processes in the industry pose increased business risks. During the last year, we worked closely with major industry players to develop our cloud-based settlement platform. The result is a collaborative network that automates the multiple steps of the settlement process to boost efficiency and improve compliance and risk management.”
As users of the Energy Settlement Network™, Citi, Goldman Sachs, Invenergy and Macquarie Group expect to benefit from instant access to settlement data, information and counterparty communications.
“With the Energy Settlement Network™, Aquilon has increased automation in the settlement process,” said Owen West, head of US Natural Gas and Power Trading at Goldman Sachs. “Additionally, as members of the network, we will now be able to access the data and information we need in one place.”
The new members of the network will be able to automate settlements and complete invoicing and payments in the web browser-based system.
“Managing energy settlement data is becoming more challenging, and the ESN™ enables commodity operations professionals to significantly improve how they work,” said Ravi Ramachandran, managing director and head of the electronic business for global commodities at Citi. “We are excited to have a key stake in a company operating at the forefront of innovation in the energy industry.”