[Context: On July 2, Shell spinout Salamander Solutions raised $7m from several investors, including Eden Rock Group, MCAAA Holding, Shell Ventures LLC, and Frontive Holding Limited. The company makes advanced heater technology for use in subsea flowlines. Further details and related links are below.]
HOUSTON, July 2, 2018 /CNW/ —Salamander Solutions, a leader in advanced heater technology for the oil and gas industry, announced that the company has raised $7 million in Series A funding from a consortium of investors with deep ties to the energy sector and cable manufacturing technology including MCAAA Holding, Shell Ventures LLC, Frontive Holding Limited. The capitalization was led by the Eden Rock Group.
Salamander Solutions is a spinout from Shell and was incorporated in March 2017 as a provider of breakthrough heater systems for the oil and gas sector. Salamander is based on an extensive R&D and piloting effort in Shell that was focused on the unlocking of massive heavy oil and oil shale resources on the basis of subsurface heating concepts.
“Salamander Solutions has differentiating thermal technology previously unseen in the industry,” says Salamander CEO Ben van den Brule. “We have successfully developed very long, durable continuous cables with high power output, solving the barrier to entry of subsurface, high temperature heaters and heating of long subsea flowlines.”
In addition to raising the working capital in the Series A Round, Salamander acquired the rights to the technical information and the relevant patents from Shell. To ensure ownership of the solution, Salamander also fully acquired MCAAA Ltd, a unique cable manufacturing facility in the UK.
“Salamander technology is reliable and versatile,” says Peter van Giessel of Shell Ventures. “We look forward to seeing where the management team takes the company – from boosting the production of cold heavy oil producers to flow assurance and remediation of subsea flowlines that are exposed to wax and hydrate deposition – there are numerous applications for this technology.”
The Salamander cables are proven in the field both in test wells as well as commercial oil producing wells. They differ from competing technology on the basis of their length, power output and superior reliability. Typical applications of the Salamander heaters also include enhancement of steam operations (SAGD, CSS) and prevention of plugging of wells that produce high levels of wax.
“YESSS Group has a long and solid history of industrial scale electrical cable manufacturing. Our confidence is very high in Salamander’s management team and revolutionary technology in the oil market,” says Adam Mackie, CEO of MCAAA. “The Salamander technology has been developed in a close partnership between Shell and MCAAA, a part of the YESSS Group. It can offer significant advantages both to the heavy oil on shore production as well as to the development of deep water assets.”