VANCOUVER, British Columbia, October 30 /PRNewswire/ --
NxtGen Emission Controls Inc. announced today the closing of a $15.4 million USD Series B investment led by Altira Group LLC. NxtGen is an emerging leader in syngas technology for diesel engine combustion optimization. NxtGen's technology is making existing and new engines cleaner to meet global emission reduction regulations. It provides a platform for advanced emission and combustion technologies for multiple fuels, including diesel, biodiesel, natural gas and gasoline.
The announcement was made by Jeremy Holt, president and chief executive officer of NxtGen.
The financing of the company with B series stock is particularly meaningful given the economic circumstances of the day and reflects the high potential for NxtGen technology to make an impact in cost-effective and minimally invasive after treatment systems for high fuel efficiency diesel engines meeting 2010 emissions regulations, as well as the retrofit of existing diesel fleets or equipment to clean diesel standards, said Holt. The inclusion of two strategic investors from Japan is noteworthy, as is the lead investor for this round, U.S.-based Altira, and the returning Canadian-based investor syndicate.
According to Holt, the funds will be used to commercialize NxtGen's first products for retrofit diesel emission reduction systems for on-road and off-road vehicles, and to complete development of advanced emissions and combustion optimization systems for original equipment manufacturers in North America, Asia and Europe.
The investment was led by Altira from its $176 million USD Altira Technology V Fund L.P. Founded in 1996 with a focus on investments in the energy sector, Altira has more than $300 million USD in active investments along the entire energy value chain.
Global demand for diesel power continues to increase while emissions regulations grow stricter. We believe that NxtGen is uniquely positioned to help deliver cleaner burning diesel engines to meet tighter emissions regulations enabling global economic growth, said Jim Newell, Altira Group Partner, who will join NxtGen's Board of Directors.
Other new investors in the financing include the corporate venture capital arm of a major Japanese automobile company and ITOCHU Corporation, a major international trading company with headquarters in Tokyo, Japan. ITOCHU will distribute NxtGen's products in Japanese and Asian markets. Current investors participated in the financing, including Yaletown Venture Partners, GrowthWorks Capital, BC Advantage Funds and Polygon Financial Investments.
NxtGen has successfully miniaturized syngas production from petroleum refinery scale equipment for use in light- and heavy-duty vehicles. Syngas is a hydrogen-rich gas that NxtGen produces from diesel fuel. This novel system significantly reduces particulate matter and NOx emissions from diesel engines and enables engine manufacturers to focus their efforts on improving fuel economy and performance. Automotive industry materials and manufacturing processes result in a product with low costs and high reliability. NxtGen's system enables a 50 percent reduction in platinum group metals costs for the catalytic filters now being implemented to reduce diesel engine emissions and avoids the cost and complexity of Urea-SCR technology.
NxtGen Emission Controls Inc. (www.nxtgen.com) is privately held by institutional investors. The company's Headquarters and Technology Center is located in Burnaby, British Columbia and the Manufacturing and Application Engineering Center is located in Wixom, Mich. The company is an emerging supplier and technology innovator in hydrocarbon fuel processing and is leveraging this technology to support clean diesel, alternative fuel use and advanced gasoline engine applications.
Altira Group LLC (www.altiragroup.com) is a Denver based private equity and venture firm that has profitably invested in energy technology companies for over 12 years. Their portfolio includes companies in both the traditional and renewable energy sectors. Altira pursues opportunities to commercialize transformative technologies that drive efficiency and productivity gains throughout the energy value chain while reducing the carbon footprint.
Brian Kahnert, NxtGen, +1-604-688-7841 x105, firstname.lastname@example.org; or Jeff Blanc, Altira, +1-415-252-1703, email@example.com; or Jennifer Greenfelder, Bianchi PR, +1-248-269-1122, firstname.lastname@example.org