The Business Development Bank of Canada has put $2.5 million into Nexterra Systems Corp., a biomass gasification company. In addition to a recent $15 million infusion from Tandem Expansion Fund and ARC Financial, Nexterra has secured a total of $17.5 million this year. Nexterra is based in Vancouver.
Nexterra Systems Corp., a leading biomass gasification company, announced today that it has secured $2.5 million in equity financing from the Business Development Bank of Canada (BDC). Proceeds will be used to accelerate the growth of Nexterra’s business. Coupled with a recent investment of $15 million from Tandem Expansion Fund and ARC Financial, Nexterra has secured a total of $17.5 million in 2011 to further its biomass energy system business.
“We believe that the market for onsite biomass heat and power systems is poised to grow significantly in the next few years to meet the rising demand for green house gas reductions, energy security and overall energy cost certainty,” says Tony Van Bommel, Partner, BDC Energy/Clean Technologies Venture Fund. “Nexterra has clearly demonstrated that it has the products, management team and track record to become a dominant player in this growing market.”
Nexterra’s proprietary biomass energy systems help universities, municipalities, hospitals, government and industrial facilities switch from fossil fuels to cost-effective, carbon-neutral biomass fuels, such as wood residues, biosolids and agriculture waste. This enables it to self-generate continuous, carbon-neutral heat and power. Based on a new generation of gasification technology, the benefits of Nexterra systems include lower costs, design simplicity, reliability, versatility, fully automated control systems and ultra-low emissions. These capabilities make biomass gasification ideally suited to urban environments.
With their recent investments in Nexterra, both ARC Financial and Tandem Expansion note Nexterra’s proven ability to deliver market leading biomass energy systems, its seasoned management team and recent project wins that have opened new markets in higher education and health care.
“We are delighted to have BDC as new investor in Nexterra,” says Jonathan Rhone, President and CEO of Nexterra. “This financing ensures that we have the resources required to meet market demand, to continue to expand and enhance our product portfolio and to maintain momentum in all aspects of our business.”
About Nexterra Systems Corp. Nexterra Systems is a leading supplier of biomass gasification solutions that generate renewable heat, power and syngas for institutional and industrial customers. Working to the highest standards with world leading partners, such as General Electric, Nexterra has successfully supplied commercial gasification systems for projects at the US Department of Energy, University of South Carolina, Dockside Green, Kruger Products, the University of Northern BC and Tolko Industries. www.nexterra.ca
About BDC Venture Capital As Canada’s business development bank, BDC puts entrepreneurs first. BDC’s Venture Capital division (BDC VC) is one of the country’s most active venture capital investors and is involved at every stage of its investee companies’ development cycles, from seed through expansion. BDC VC focuses on technology-based businesses with high growth potential that are positioned to become dominant players in their respective markets.