Montréal-based cleantech company Eocycle Technologies has closed $25 million CAD in Series A funding as it looks to expand its distributed wind turbines in the United States and Europe.
The deal closed earlier this month and was led by Export Development Canada (EDC), which contributed a $10-million equity investment. The round saw additional participation from Fonds de Solidarité FTQ and Investissement Québec, which contributed $10 million in equity financing and a $5-million loan, respectively. To date, Eocycle has raised $47 million in equity financing.
“A just environmental transition also means exporting Eocycle’s Québec-based know-how and products to Europe and the United States.”
Christian G. Brosseau
A spokesperson for Eocycle told BetaKit that as part of the funding round, EDC’s Hozefa Abbas and the Fonds’ Christian G. Brosseau will join Eocycle’s board.
Eocycle manufactures small wind turbines designed for on-site production of clean electricity at rates significantly lower than utilities can provide. The firm says this model is ideal for farms, as well as commercial and industrial facilities looking to cut their energy costs and meet emissions targets.
The term “distributed wind” refers to turbines that are integrated with the power grid, allowing surplus electricity produced to be sold back to the grid. Eocycle says this setup prevents energy waste and maximizes economic benefits and savings for its users.
Richard Legault, president and CEO of Eocycle, claimed in a statement that a single unit of their technology could reduce energy expenses by more than $1 million throughout the turbine’s operational lifespan.
“Global energy production continues to pivot towards renewables, not only because of strict regulations to cut emissions, but also because products like Eocycle’s wind turbines can save customers significant cost on their energy bill,” Legault said.
Eocycle was founded in 2001, and according to its website, began selling its first wind turbines in 2009. In 2013, the company launched a four-year research and development (R&D) and certification program to create a second-generation design of its turbine. The company claims this model stands out from competitors due its high reliability, lower cost, and higher energy output.
With the new funding, Eocycle is focused on market expansion. The company, which already operates in Canada, the US, and Europe, is planning to take advantage of new government incentives in the US, such as those in the Inflation Reduction Act, and similar incentives in Europe, to grow its existing presence in those markets.
Eocycle’s spokesperson told BetaKit that the Inflation Reduction Act, along with other decarbonization incentives, could offer tax credits to farmers and industrial companies. Combined with the energy savings delivered by its wind turbines, the spokesperson said, this creates a compelling business case for Eocycle’s products.
In the US, Eocycle plans to expand in the Midwest and Great Plains regions. Across the pond, Eocycle also hopes to build on its 2020 acquisition of Belgian distributed-wind company Xant to expand deeper into the European market. Legault said the combined value of the American and European distributed wind turbine markets is approximately $200 billion.
In addition to market expansion, Eocycle is also looking to use the new funding to scale its R&D and grow its 20-person team by 50 percent, with a focus on hiring in sales, production, and customer-service departments. The company said it expects to double its sales in the next year.
‘’A just environmental transition also means exporting Eocycle’s Québec-based know-how and products to Europe and the United States. The Fonds is proud to support quality jobs and the growth of a Québec company having a direct impact on renewable energy offered worldwide,” Brosseau said in a statement.
Feature image courtesy Eocycle.
