GLOBE Foundation

BDC invests $2.5M in Nexterra - 2011 investments now total $17.5 Million


Source: GLOBE Foundation

Nexterra Systems Corp. 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.'

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