Fuse Energy expands into domestic gas after $10m funding

Fuse Energy has announced its entry into the domestic gas market while reporting $90 million in annualised revenue and closing a $10 million follow-on investment round.

The company, established in 2022 by former Revolut executives Alan Chang and Charles Orr, currently supplies electricity to 50,000 UK homes and is extending its offering to include gas, citing the needs of the majority of UK households. The latest investment, which includes backing from funds such as Lowercarbon Capital and Balderton Capital, brings Fuse's total funding to $100 million. The company has noted that it has grown sevenfold year-on-year over the last two years.

Fuse Energy's model is based on owning the entire energy supply chain, from generation assets such as solar and wind farms to supply and trading, aiming to deliver electricity and now gas directly to consumers through its digital app and web platforms. This approach, the company says, is intended to simplify the energy experience for customers and drive efficiencies.

Gas rollout

The decision to offer a domestic gas product comes at a time when the UK's energy market is recovering from recent volatility. Fuse cites the ongoing reliance of UK households on gas, with approximately 84% using it in addition to electricity, as a factor in this move.

According to company statements, the expansion will allow Fuse to address a much larger section of the domestic market, with the company estimating a potential reduction in household energy bills by £150 a year.

Investment and growth

The $10 million capital injection from Lowercarbon Capital and Balderton Capital is set to support Fuse's ambitions for international expansion into markets such as Ireland, Europe, and the United States. It will also fund further product development, research and development and the introduction of AI-powered features to its consumer app.

Fuse's investor base includes Lowercarbon, Balderton, Multicoin, Lakestar, Accel, Creandum, and Ribbit. These investors have highlighted Fuse's rapid growth and ambition to manage the full value chain within the energy sector.

"Sunbeam to socket, Fuse is re-writing the renewable energy playbook," said Clay Dumas, managing partner at Lowercarbon Capital. "From record-breakingly quick construction of new solar power plants to top-rated home EV charger installations, no one matches Fuse's ambition when it comes to managing electrons. Now we're doubling down to help them bring their UK-leading energy products to a smart appliance near you."

Leadership vision

Alan Chang, Co-Founder and Chief Executive Officer of Fuse, describes the business model as a direct application of experience gained at digital banking platform Revolut, where he previously held the role of Chief Revenue Officer before founding Fuse.

"We're using the same approach that helped Revolut scale; vertical integration, technical talent, and customer obsession," said Alan Chang, co-founder and CEO, Fuse. "The world has a major energy problem: legacy utilities are slow, inefficient, and built on old infrastructure. There is little urgency among incumbents to change this. Our integrated approach means we can drive down costs while investing in a more resilient grid - building the future of energy that is cheap, abundant and clean".

Chang indicated that Fuse's vertical integration model would help deliver cheaper, more reliable and cleaner energy to households, while also supporting the broader transition to low-carbon electricity. Fuse owns and operates a portfolio of low-carbon generation assets, comprising 18 MW of active capacity and a pipeline exceeding 1 GW across the UK, US and Europe. Revenue garnered from energy customers is reinvested in clean infrastructure, including the development of emerging technologies such as green hydrogen gas.

Charles Orr, Co-Founder and Chief Operating Officer of Fuse, referred to current challenges in the affordability and reliability of the UK's energy system, noting the impact on consumers and the wider economy.

"Successive cost of living crises show that our energy system is no longer fit for purpose," said Charles Orr, Co-Founder and Chief Operating Officer of Fuse. "Affordable energy isn't a luxury, it's fundamental to a decent standard of living and a productive economy. At Fuse, we're building the technology needed to realise that future".

Market context

The UK and European energy markets have seen some of the highest prices among developed economies in recent years, intensifying calls from government, consumers and business for alternative solutions. Fuse sets out a goal of leveraging technology to make energy more affordable and abundant, while also supporting ongoing requirements for conventional energy sources such as domestic gas.