Caterpillar contact:
Penny Wu
(309) 675 6034
Wu_Penny@cat.com

 

Powerhive contact:
Daniel Boucher
(916) 342 8074
communications@powerhive.com

 

FOR IMMEDIATE RELEASE

Caterpillar Ventures joins Powerhive’s $20M Series A round with strategic investment
to develop off-grid energy access solutions in emerging markets

PEORIA, Ill. / BERKELEY, CA. - Caterpillar Venture Capital Inc., a wholly owned subsidiary of Caterpillar Inc. (NYSE:CAT), announced today that the company has made an equity investment in Powerhive, an energy solutions provider for emerging markets.

Caterpillar Ventures is one of eight investors in a $20M Series A round, which was led by Prelude Ventures and also includes First Solar, Total Energy Ventures and Tao Capital Partners. The venture financing will support Powerhive’s global expansion and continued growth in East Africa, where the company has operated rural microgrids since 2012.

Collaboration between Powerhive and Caterpillar will combine Caterpillar’s depth of experience in emerging markets, technical expertise and scale with Powerhive’s pioneering microgrid solutions to advance both companies’ ability to serve energy demand growth in emerging markets during the 21st century.

“Caterpillar’s global reach and vast network of local partners will unlock new opportunities for electrification in remote, underserved regions,” said Powerhive CEO Chris Hornor. “We’re excited to work with a company that has built a reputation of integrity and quality during its 90-year existence and has been committed to a broad energy portfolio and sustainable development.”

Powerhive leverages its proprietary technology platform to develop and operate portfolios of renewable microgrids that supply affordable, reliable and productive electricity to off-grid communities in emerging markets. Powerhive’s long-term and scalable energy access solution drives rural economic development, reduces energy poverty and results in cleaner, more resilient energy infrastructure in some of the world’s most vulnerable communities.

“We are excited about our investment into Powerhive as it further positions Caterpillar as the go-to source for the complete microgrid solution,” said Steve Niehaus, Caterpillar Vice President with responsibility for the Electric Power Division. “No matter where our customers are in the world, they can turn to Caterpillar and our unmatched dealer network to integrate alternative energy solutions like solar and energy storage with our generator sets so they have a sustainable, reliable power solution that is fully supported for years to come.”  

Caterpillar’s investment into Powerhive builds on its commitment to developing products and services that contribute to sustainable power generation and utilization of all energy resources. Over the past year, Caterpillar Inc. has invested in Fluidic Energy for energy storage and signed a strategic alliance with First Solar for an integrated photovoltaic (PV) solar solution for use in microgrid applications.

Caterpillar is a leader in the power generation marketplace with power systems engineered to deliver unmatched durability, reliability and value. The company offers worldwide product support, with parts and service available globally through the Cat® authorized service and dealer network. In addition, dealer service technicians are trained to service every aspect of Cat equipment.

 

About Caterpillar Ventures

Caterpillar Venture Capital Inc. (Caterpillar Ventures) assists entrepreneurs around the world grow and scale their businesses to build today for a better tomorrow by leveraging Caterpillar’s industry expertise, supply base and independent dealer network. Caterpillar Ventures’ focus areas of investment include distributed power, analytics, robotics, additive manufacturing and business models that help our customers be successful. Caterpillar Ventures is a wholly owned subsidiary of Caterpillar Inc., the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. For more information, visit caterpillar.com/ventures.

 

About Powerhive

Founded in 2011, Powerhive is a leading microgrid solutions provider and developer whose proprietary technology platform and business model enables the development, financing, and management of bankable solar microgrids in emerging markets. The California based company has offices in Nairobi and Manila, and received early backing from First Solar. To learn more about Powerhive, visit powerhive.com.

 

Forward-looking Statements

Certain statements in this press release relate to future events and expectations and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “believe,” “estimate,” “will be,” “will,” “would,” “expect,” “anticipate,” “plan,” “project,” “intend,” “could,” “should” or other similar words or expressions often identify forward-looking statements. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding our outlook, projections, forecasts or trend descriptions. These statements do not guarantee future performance, and we do not undertake to update our forward-looking statements.

Caterpillar’s actual results may differ materially from those described or implied in our forward-looking statements based on a number of factors, including, but not limited to: (i) global and regional economic conditions and economic conditions in the industries we serve; (ii) government monetary or fiscal policies and infrastructure spending; (iii) commodity price changes, component price increases, fluctuations in demand for our products or significant shortages of component products; (iv) disruptions or volatility in global financial markets limiting our sources of liquidity or the liquidity of our customers, dealers and suppliers; (v) political and economic risks, commercial instability and events beyond our control in the countries in which we operate; (vi) failure to maintain our credit ratings and potential resulting increases to our cost of borrowing and adverse effects on our cost of funds, liquidity, competitive position and access to capital markets; (vii) our Financial Products segment’s risks associated with the financial services industry; (viii) changes in interest rates or market liquidity conditions; (ix) an increase in delinquencies, repossessions or net losses of Cat Financial’s customers; (x) new regulations or changes in financial services regulations; (xi) a failure to realize, or a delay in realizing, all of the anticipated benefits of our acquisitions, joint ventures or divestitures; (xii) international trade policies and their impact on demand for our products and our competitive position; (xiii) our ability to develop, produce and market quality products that meet our customers’ needs; (xiv) the impact of the highly competitive environment in which we operate on our sales and pricing; (xv) failure to realize all of the anticipated benefits from initiatives to increase our productivity, efficiency and cash flow and to reduce costs; (xvi) additional restructuring costs or a failure to realize anticipated savings or benefits from past or future cost reduction actions; (xvii) inventory management decisions and sourcing practices of our dealers and our OEM customers; (xviii) compliance with environmental laws and regulations; (xix) alleged or actual violations of trade or anti-corruption laws and regulations; (xx) additional tax expense or exposure; (xxi) currency fluctuations; (xxii) our or Cat Financial’s compliance with financial covenants; (xxiii) increased pension plan funding obligations; (xxiv) union disputes or other employee relations issues; (xxv) significant legal proceedings, claims, lawsuits or government investigations; (xxvi) changes in accounting standards; (xxvii) failure or breach of IT security; (xxviii) adverse effects of unexpected events including natural disasters; and (xxix) other factors described in more detail under “Item 1A. Risk Factors” in our Form 10-K filed with the SEC on February 17, 2015, for the year ended December 31, 2014.