Plastics recycling company, Pyrowave, is the first participant to receive funding
Export Development Canada (EDC) is forging new partnerships to bring more capital to a broader range of Canadian cleantech companies at a critical point in their operations. The Cleantech Co-Investment Program (CCIP) will see EDC and eligible partners - niche private-sector investors -support the next generation of cleantech exporters in Canada.
Many of the companies coming to Canada’s export credit agency for financial solutions are early-stage, and still have negative cash-flow. However, if they have initial customer traction and other market validation, access to equity capital could be the catalyst to growth.
CCIP will fill a funding gap, targeting companies with around $1 million in revenues who have the ability to grow. The strategy is that the investment will help them get past a crucial point in their development; helping them become big enough to access the global market. It will also assist with the “crowding in” of private capital to the sector.
“EDC has proven its commitment to supporting cleantech in Canada for the past six years, becoming the largest provider of financial solutions for companies in the sector looking to export,” says Carl Burlock, Senior Vice President, Financing and International Growth Capital at EDC. “CCIP is another solution that sees EDC leverage private sector capital to support promising new companies at a critical stage in their development, so they can move ahead and take advantage of a growing global market.”
Since 2012, helping Canadian cleantech companies grow their businesses internationally has been a top priority for EDC, with a dedicated team focused on understanding the industry’s needs and delivering the right solutions for them. In 2017, EDC provided a record $1.5 billion in financing and support to nearly 200 cleantech companies in Canada.
The first transaction under CCIP is with Pyrowave, a company that has developed a unique technology to process plastic waste. The technology enables, an increase in the range of materials that can be recycled, and a reduction in logistics and cost, while producing higher value end products.
EDC is partnering with Ecofuel and a European investor and will invest CAD $1 million in the company through CCIP.
“Plastic products continue deliver a number of uses and benefits in our modern world, but plastic waste is a major problem,” said Jocelyn Doucet, Chief Executive Officer at Pyrowave. “At Pyrowave, we believe the future of plastic is circular. Our technology combined with existing industrial processes can help reduce waste, providing both environmental and economic benefits for communities. We know there is a demand for our system globally, and EDC’s CCIP investment was a key element in attracting additional strategic investments to strengthen our leader position in the new circular economy.”
Pyrowave is the leader in Catalytic Microwave Depolymerization with its unique patented microwave technology that unzips plastics back into their initial constituents. Only 8% of plastics generated today are recycled – yet the costs to haul, store, sort and process plastics are enormous. Using patented Catalytic Microwave Depolymerization (CMD), Pyrowave places small, modular units directly onsite at recycling facilities and at producers of plastic waste. Pyrowave has one machine in operation producing the world’s first Recycled Styrene Monomer (RSM) from post-consumer polystyrene waste that is sold to large polymer companies. Pyrowave’s technology enhances the rate and the range of recyclable materials, reduce logistics costs and produce higher value end products from waste plastics – products such as recycled wax, oil and monomers. The Pyrowave technology is the result of 8 years of research and development and continuous support from various organizations including Sustainable Development Technology Canada (SDTC) and Transition Énergétique Québec (TEQ). The company has recently received international awards including figuring on the 2017 Global Cleantech Ones-to-Watch list produced by the Cleantech Group and was named in Canada’s 2018 Clean50 in the resource Category.
Export Development Canada (EDC) is a financial Crown corporation dedicated to helping Canadian companies of all sizes succeed on the world stage. As international risk experts, we equip Canadian companies with the tools they need – the trade knowledge, financing solutions, equity, insurance, and connections – to grow their business with confidence. Underlying all our support is a commitment to sustainable and responsible business. To help Canadian businesses facing extreme financial challenges brought on by the global response to COVID-19, the Government of Canada has expanded EDC’s domestic capabilities until December 31, 2021. This broader mandate will enable EDC to expand its support to companies focused domestically.
For more information and to learn how we can help your company, call us at 1-800-229-0575 or visit www.edc.ca.