Nexterra closes on $15 million in financing
Nexterra Systems Corp. announced March 2 that it has secured $15 million in equity financing from Tandem Expansion Fund and ARC Financial. Proceeds will be used to accelerate the growth of Nexterra’s business.
“We believe that the market for small-scale biomass heat and power systems is poised to grow rapidly in the next few years to meet rising demand for on-site renewables, energy security and greenhouse gas reduction,” said Sandy Scott on behalf of Tandem Expansion. “When we looked at the biomass energy market, Nexterra clearly stood out due to its innovative and commercially proven technology, strong market position and seasoned management team. Recent wins in the higher education and health care markets, position the company for rapid expansion.”
Utilizing Nexterra’s proprietary biomass gasification technology, Nexterra’s biomass energy systems allow universities, municipalities, hospitals and industrial facilities to reduce energy costs and greenhouse gas emissions by switching from fossil fuels to renewable energy generated on-site using biomass. Nexterra systems are ideally suited to urban environments due to their ultra-low emissions, fuel flexibility, reliability and low life-cycle costs.
Nexterra has been selected by customers that include the U.S. DOE, Johnson Controls, the University of Montana, Kruger Products, Dockside Green and the University of British Columbia. In aggregate, Nexterra systems are capable of displacing more than 2,000,000 MMBtu per year of fossil fuels (equivalent to heating 770,000 North American homes) and reducing greenhouse gases by more than 100,000 metric tons per year (equivalent to taking 25,000 cars off the road).
“We are delighted to participate in this financing,” said Brian Boulanger, senior vice president and director of ARC Financial. “This is ARC’s fourth investment in Nexterra and we continue to be very excited about the progress the company has achieved, as well as its growth prospects. Nexterra has clearly emerged as a dominant force in the biomass heat and power market.”
British Columbia’s Minister of Finance Colin Hansen said, “Tandem and ARC’s $15 million investment in Nexterra is an excellent example of continued investor interest in innovative B.C. companies, particularly in newer industries such as clean energy. This shows the confidence investors have in B.C.’s economy, our strong business climate and our leadership in the clean technology sector.”
“With the company on track for a record year in 2011 for sales and revenue growth, Nexterra is continuing to build on its leadership position in the biomass energy market,” said Nexterra CEO, Jonathan Rhone. “This financing ensures that we have the resources required to meet market demand, continue to expand and enhance our product portfolio and maintain momentum in all aspects of the business.”