Pinnacle Backs Ze-Gen

Ze-gen Inc., a Boston-based developer of gasification technology, has raised $2.5 million in venture debt from Pinnacle Ventures. Ze-Gen is attempting to convert municipal waste streams into synthetic gas and generate both low-emissions electricity and renewable energy credits. It had previously raised around $8 million in VC funding from Flagship Ventures and Vantagepoint Venture Partners.

 

PRESS RELEASE

Ze-gen, Inc., a clean energy company providing advanced gasification technology to convert municipal waste streams into synthesis gas and generate low emissions electricity and renewable energy credits, announced that it has closed a $2.5 million venture term debt facility with Pinnacle Ventures, L.L.C. of Palo Alto, California.

“We're confident in the design and technology that we've witnessed at the Ze-gen test facility in New Bedford, MA and we believe that our decision to help fund the preliminary permitting and development for their next facility will prove to be a sound investment,” said Patrick C. Lee, a Partner at Pinnacle Ventures. “As a company, Ze-gen embodies the ideals we seek for our investments, an innovative technology combined with a compelling business model with excellent growth potential. High energy costs, the need for more clean and renewable energy generation and a growing waste disposal problem have created the ideal environment for the Ze-gen solution.

The increasing volume of solid waste is a global problem with lasting effects. In the United States alone, over 300 million tons of municipal solid waste are being sent directly to landfills. This poses serious environmental problems as decomposing waste generates methane emissions, a greenhouse gas 20 times more potent than carbon dioxide. Ze-gen offers an economically viable and environmentally superior alternative to traditional landfills through its patented technique to create synthetic natural gas, and then generate clean power from this enormous source of free fuel.

“Pinnacle Ventures' support represents an important milestone for Ze-gen. As we begin the process of launching our full-scale commercial operations, the confidence and backing of Pinnacle is a coveted endorsement we are proud to secure,” said Bill Davis, Ze-gen's CEO and President.

To date, Ze-gen has raised over $8 million in financing from a range of leading clean energy institutional investors, including Pinnacle Ventures, Flagship Ventures, VantagePoint Venture Partners, the Massachusetts Technology Development Corporation, and the Massachusetts Renewable Energy Trust. Ze-gen held a ribbon-cutting ceremony at its large-scale demonstration facility in New Bedford, MA on July 23, 2007 and successfully commenced testing operations in October. The company has begun development and pre-engineering work on a full-scale commercial facility and is on-track to begin construction of this facility by the end of 2008.

About Ze-gen, Inc.

Ze-gen was founded in mid-2004 to develop and deploy advanced gasification technology which converts municipal waste streams into synthesis gas with virtually zero emissions. In addition to the environmental problems associated with conventional means of waste disposal, there is considerable energy content in ordinary waste streams. Industry data suggests that in the United States alone, over 50,000 megawatts of latent energy potential lies in these waste streams, which are routinely landfilled. Ze-gen is poised to be the market leader in the environmentally friendly re-purposing of these waste streams into renewable energy. For more information and a multimedia glimpse of the future, visit www.ze-gen.com.

About Pinnacle Ventures

Pinnacle Ventures is a private venture capital fund focused on providing debt and equity financing to early-stage companies. Pinnacle differentiates itself through the strength and diversity of its team, its broad range of investment alternatives, its creative and flexible structures, its thoughtful responsiveness, by taking a long term perspective with respect to its investments and by helping its portfolio companies achieve success. The company is located in Palo Alto, California.