OTTAWA – 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 to deliver a number of uses and benefits in our modern world, but plastic waste is a major problem,” said Jocelyn Doucet, CEO 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.”