Israeli smart water heating and cooling firm sets their site on global expansion after signing manufacturing deal with industry leader worth tens of millions of dollars
In an announcement made on Wednesday, Israeli CleanTech firm Phoebus Energy has declared that they have signed a 10-year contract with global manufacturing and logistics giant Jabil to boost production of their Hydra Balance smart water heating and cooling solutions.
Founded in 2007 by VP of Product Development Yoav Ben-Yaakov, they are located in Petach Tikva, a short drive (depending on traffic) from Tel Aviv. They also have sales and support offices in Athens and Hamburg, and are a part of Terra Venture Partner’s portfolio.
Phoebus has developed a hybrid system for heating and cooling water for mass consumption in places like hotels and hospitals that are constantly burning up energy to maintain basic operations. The company claims that their systems are able to achieve between 70-90% savings on fossil fuel usage, thus helping to reduce the production of unwanted pollution. For their clients, they say that they can offer them somewhere in the range of 50-60% savings on energy costs, which for large-scale facilities like hotel chains, can quickly add up to considerable savings.
The Hydra Balance system is designed to be retrofitted into existing infrastructures, making it an ideal upgrade for cutting both costs and pollution.
Expanding global market growth
As part of the deal, Phoebus has licensed their design to Jabil for the course of the next decade. In turn, Phoebus will then buy the ready product and resell them to their customers around the globe.
In speaking with Geektime, Phoebus’s CEO Ronen Botzer says that their primary target market is the major hotel chains. Among their current clients are Starworld, the French Accor chain, IHG – which owns the Crowne Plaza and Holiday Inn brands – and Hilton.
“We are delighted to have Jabil as a strategic partner to support our international expansion,” says Botzer in his statement to the press. “This year Phoebus has grown in the international market with new customers in Spain, Mexico, Canary Islands, Caribbean Island, India, Hong Kong, and Greece. Jabil brings significant supply chain and manufacturing expertise, and can support our global needs as Phoebus scales into international hotel chains in order to help reduce their carbon footprint efficiently and effectively. Phoebus is now generating sales in numerous countries and is helping commercial institutions achieve the country’s goal of carbon emission reduction.”
The devices are set to be manufactured at Jabil’s facilities in St. Petersburg, Florida. Jabil is estimated to be valued at over $20 billion and is considered to be a leader in their field.
Being a member of Terra Venture’s portfolio has been very beneficial to their growth, explains Botzer. Under the wing of Managing Partners Harold Wiener and Astorre Modena, Botzer says that, “They’ve been with the company since the beginning, not only as investors, but as mentors as well.”
When asked about their expanding business, Botzer cites a new contract with Endesa – the largest electricity firm in Spain – where they have plans to install the system in one of their customer’s sites as a pilot, with hopes that they will then expand to use the device at other locations. He says that they have also signed with the Spanish NH Hotel Group with its 450-member chain of hotels throughout Europe, Africa, and Latin America.
In looking at the contract’s conditions, sources close to the deal believe that this alliance between the companies will generate value in the tens of millions of dollars over the next decade as it is implemented.
As a heavy hitter in the world of manufacturing and logistics, Jabil appears to be well placed for implementing this expansion and will give Phoebus a scale that was previously out of reach.
With fluctuating fuel prices constantly affecting the market, solutions like the Hydra Balance are becoming far more appealing to the large chains with whom Phoebus is already well ingrained. Along with new legislation and other pressures to cut down on pollution, their easy-to-integrate solution makes Phoebus even more well situated to benefit from this deal.
Writer: Gabriel Avner