A Southampton based business driving the development of marine electrification has successfully secured a £500,000 equity investment via The FSE Group, as part of a £4.3 million funding round aimed at accelerating its growth and expanding its workforce.

RAD Propulsion has emerged as a leader in developing electric propulsion systems for small to medium-sized boats. The company is helping reduce carbon emissions within the marine industry, which is currently responsible for 3% of global CO2 emissions.

RAD’s innovative electric engine technology cuts CO2 emissions by 89% compared to traditional diesel outboards, marking a significant step towards environmental sustainability. The engine operates as part of its proprietary integrated, smart control system for the marine sector.

This injection of funds, which includes investment from Ocean Infinity and One Planet Capital, will enable RAD to scale operations, enhance product development and create new jobs, boosting its mission to innovate and improve sustainability in the marine sector.

Dan Hook, RAD Propulsion CEO, said: "This funding not only validates our technology but also strengthens our ability to meet the growing demand for green marine solutions. With a strong order pipeline and strategic partnerships with high-volume boat builders, we are poised to make a significant impact on the industry this year  and we are delighted to be working  with The FSE Group and our other investors on this journey."

RAD Propulsion is also one of the main partners in the ZENOW project, a £5.4 million initiative aimed at creating an electric workboat network across the UK South Coast.

Paul Lyristis, Investment Manager at The FSE Group, added: “We are thrilled to be supporting this impressive management team as they continue to lead the charge towards a greener marine future, committed to delivering high-performance, environmentally friendly marine propulsion solutions that do not compromise on power or efficiency.”

Dr Eric Warner of FAIR Advisers Ltd, who introduced RAD to FSE, commented: “It was great to bring a dynamic, green engineering company like RAD to such an engaged and committed investor as FSE.  The investment process was thorough, searching and ultimately satisfying to all.”