Aquilon Energy Services

About Aquilon Energy Services

Aquilon Energy Services, founded in 2011 by Jeffrey Wagner, operated as a financial technology developer for the wholesale energy sector. The firm's core offering was the Energy Settlement Network (ESN), a cloud-based platform designed to automate the financial settlement process for both physical and financial energy transactions. The ESN was conceived to address the increasing volume and complexity of data in energy settlements, a challenge amplified by the growth in renewables.

The company's business model revolved around its Software as a Service (SaaS) platform, which provided a collaborative, digital space for energy companies and financial institutions to manage, access, and settle transactions. This network enabled participants to track and approve transactions, identify and resolve discrepancies, and communicate with counterparties through a single interface. By digitalizing these back-office functions, the ESN aimed to deliver significant productivity improvements, strengthen financial controls, and reduce operational risk for its clients. The platform catered to a range of commodities, initially focusing on power and natural gas before expanding to include North American crude oil, with plans for NGL and refined products.

Aquilon secured notable financial backing, raising a total of $33.6 million. A pivotal Series B funding round in February 2017 brought in $19 million from major industry players, including Citi, Goldman Sachs Principal Strategic Investments, Invenergy, and Macquarie Group. A key aspect of this investment was that these financial giants also committed to utilizing the ESN, providing a strong validation of the platform's value proposition. By mid-2019, the network had grown to include over 1,000 companies. In July 2019, Randy Wilson, a seasoned consultant in energy trading and digital technologies, was appointed CEO, while founder Jeffrey Wagner transitioned to the role of Chief Technology Officer to focus on the platform's next-generation development.

Despite its early traction and strong investor base, Aquilon underwent a significant restructuring and became partly owned by SS&C Technologies, a major financial and healthcare technology firm, in a move to leverage SS&C's market reach and expand service offerings. However, the effort to establish the platform as a long-term, viable solution for the industry ultimately concluded. Aquilon Energy Services ceased operations, and its Energy Settlement Network was no longer supported as of March 12, 2021.