Scottish climate tech venture studio Ventex has acquired a specialist manufacturing firm as it seeks to accelerate the global expansion of nuclear energy.
Cumbria-based Rovtech is the third business to become part of Ventex, which is focussed on repurposing companies, technologies, skills and experience in the existing supply chain to support renewable energy markets.
Rovtec is a leading expert in harsh environment manufacturing and primarily serves the nuclear and subsea energy sectors in the US, Japan, France, and the UK.
The company boasts a global track record of precision ROV and stand-alone monitoring and intervention systems capable of withstanding radiation, extreme heat, and deep ocean environments.
Nuclear power generation is expected to treble by 2050 following a breakthrough at COP28 where 25 countries agreed that nuclear energy is key to carbon reduction.
Rob Aitken, Stuart Macleod and Steve Gray
The global finance community is now lining up to deploy capital, with major global banks including Goldman Sachs, Barclays, Morgan Stanley and Citibank all declaring support for nuclear investment at last month’s New York Climate Week, some for the first time.
Ventex Managing Partner Stuart McLeod said: “Rovtech has supplied world-class products for critical energy industries for over 20 years.
“The miniaturisation of electronics and the progressive automation of tasks are reshaping this industry, and Rovtech is ideally positioned as a full-capability manufacturer.”
“Rovtech exemplifies a mature business that is unaware of its excellence and scale potential. It is a hidden gem, perfectly placed to support the energy transition and net-zero supply chain.”
Headquartered in Barrow-in-Furness, Rovtech has a growing addressable market in front of it. The decommissioning of large legacy nuclear portfolios worldwide – together with government and financial sector support for new projects – creates long-term sustainable demand growth for specialist harsh environment engineering services.
Ventex believes Rovtech’s reputation in demanding environments also positions the firm perfectly for the opportunities in offshore floating wind.
Ventex Managing Partner Steve Gray added: “With our support, investment, and access to new markets, Rovtech can achieve its full potential and accelerate the journey to net zero.
“Significant cost-savings can be enabled by Rovtech’s range of ROV sensors and tools, particularly in the offshore wind sector. This will expedite offshore wind construction and help the UK meet its climate targets, aligned with our core mission.”
Ventex was launched in Aberdeen earlier this month by McLeod and Gray. Both have a track record of success in building global businesses.
Gray was the founder and former chief executive of ROVOP, now a leading global player in the ROV rental market, recently sold to Chouest.
McLeod led oil and gas completions and commissioning technology specialist QEDI through to its £33 million acquisition by Amec plc.
The pair have recently added former KPMG and PwC dealmaker Rob Aitken to the Ventex leadership team as they seek to repurpose the supply chain to seize green energy opportunities.
They are also investing in early-stage companies with technologies that have significant potential to help solve the climate crisis.
The acquisition on Rovtech follows Ventex investments in Aberdeen-based High Performance Robotics (HPR) and decommissioning-focused artificial intelligence firm Rahd, headquartered in Perth, Australia.
HPR is broadening its expertise by extending its cost-efficient inspection services from the oil and gas sector to also encompass the offshore wind market. This strategic move aims to deliver significant cost savings.
Meanwhile, Rahd’s AI technology is poised to dramatically reduce decommissioning costs for North Sea operators.
Ventex has a strong investment pipeline and will be making further investment announcements before the end of the year.