El-Forest AB, a Örnsköldsvik, Sweden-based developer of a forestry machine that uses energy efficient electric-hybrid technology, has received a SEK 20m investment from venture capital firm Fouriertransform AB (FTAB).
After the investment Fouriertransform becomes the largest shareholder followed by Volvo Technology Transfer (VTT), a wholly owned subsidiary of AB Volvo, and the company’s founders, Lennart Lundstrom and Roger Gustavsson.
In conjunction with the private placement, VTT will convert a SEK 5m loan into shares.
The new capital will enable the company to commence series production on its electric driven forwarder, which is a forestry machine used to transport round timber from the felling site. Hybrid power in turn entails a reduction in fuel consumption by about 35% and also significantly lower carbon emissions, compared with conventional technology. The machine developed by El-Forest also weighs less than conventional forestry machines.