LED lighting start-up Lumenstream secures £5m deal with major energy company
Belfast-based start-up Lumenstream has secured a £4.8m contract with a major UK energy company to provide LED lighting.
Argus Energy Management specialises in providing energy efficiency measures across the UK.
It represents the first major deal for the east Belfast firm, set up just 12 months ago.
Lumenstream provides installation and management services to upgrade commercial premises to use LED technology.
They include manufacturing plants, warehouses, car parks, large offices and public sector buildings.
Against a backdrop of electricity prices continuing to increase year-to-year, more businesses appear to be turning to LED lighting, which can offer a 60% reduction in energy costs.
Founded by the father-and-son team of Adrian and Alistair Brown, Lumenstream is one of the Northern Ireland companies tapping into the growth sector.
But what has set the Castlereagh Street business apart from its competitors is its business model.
Alistair Brown said its service is offered with no upfront cost to the building owner, instead, the LED technology is paid for based on a share of energy savings achieved over five years.
"Upgrading to LED lighting appeared to be too expensive and complicated for many businesses," he said.
"So our model provides LED lighting, fully installed and maintained, for no upfront cost.
"The client pays for the new LED upgrade by a monthly service fee which represents a fraction of the monthly energy savings that they achieve."
But, Mr Brown said, that due to the significant cost in providing LED upgrades in this way, his company needed to collaborate with another company to support the project costs.
The result has been the deal with Argus, who have signed up to support costs in Northern Ireland and the rest of the UK with a fund of £4.8m.
"We see this business model as a game changer in the local energy market," he said.
"We are confident that this service will assist in accelerating the switch to a more sustainable business sector."