With this financing we are able to provide local energy to more buildings.
Orono, ME (PRWEB) June 17, 2014
Today, Pelletco announced a new financial partnership entailing a substantial financial investment in Pelletco HeatPod™projects by CleanFeet Investors of Farmington, Connecticut.
“We are very pleased to announce a new financial partnership with CleanFeet Investors. CleanFeet is one of the preeminent clean energy investment funds in the Northeast and this financial partnership will allow us to grow substantially in the near future,” said James Knight, President of Pelletco. “The proceeds of this financing ($1.5M) will be used to build new units and deploy them for new customers and repay the company’s existing debt with Coastal Enterprises (CEI). This gives us the opportunity to grow local energy from wood pellets. Heating costs are a substantial problem for many Northeasterners and we have a proven solution that requires no upfront investment while reducing emissions.” Pelletco has raised over $3M in capital to date and expects to commit an additional $5M in the next 18-24 months.
“We are very happy to have been able to support Pelletco as they have brought the HeatPod™ product to market,” said John Egan of CEI. “We look forward to continuing to support Pelletco’s future growth and we view this financing as an important milestone in the company’s growth and scale up.”
“Projected cash flows over a number of years, from these proven alternative energy systems, provides our investors with attractive annual returns,” said Bernard Zahren, Managing Partner of CleanFeet. “Pelletco represents an investment at the core of our investment philosophy of ‘doing well by doing good’.”
Positive Customer Impact
Many customers have already seen the benefit by deploying Pelletco HeatPod™ installations. While individual results may vary, Pelletco save customers an average of 20% on their heating bills.
Carl Flora, CEO of the Loring Development Authority is one customer who has benefited from lower fuel oil bills. “The cost of heat is a major cost component for our operations and for Loring’s businesses, which are seeking an opportunity to be profitable and grow.” “Pelletco installed the HeatPod™ last summer and we can attest to real savings in heating costs in the first winter even though this was a particularly cold winter.”
Black River Produce of Springfield Vermont recently committed to a second Pelletco installation in their facilities based on the savings they are achieving in the face of rising costs of oil and propane. “The savings are real and we need to reduce the risk of fuel price volatility and rising prices of oil and propane. Pelletco is a way for us to control our heating costs,” said Mark Curran, President, Black River Produce. “We are committed to the local economy and environmental stewardship and Pelletco gives us local energy, reduces our emissions from fossil fuels with no upfront investment.”
Pelletco provides heat from wood pellet boilers with no upfront cost to commercial and institutional customer in the Northeast. Customers save an average of 20% over furl oil. Pelletco has installed over 20 units and expects to add an additional 50 in the coming year. Founded in 2010, Pelletco is the leader in providing locally sourced heat to reduce energy price risk for businesses and institutions with no investment required. The company offers a full range of sizes designed to make heating with local energy a reality.
CleanFeet Investors seeks to provide significant returns from socially responsible investments in small to medium-sized renewable energy and energy conserving projects. By employing effective investment structures for sophisticated investors, CFI is helping to fill the current void in “non-dilutive” capital for an industry segment that is both very attractive and critical for an effective overall energy policy. In our humble opinion, this represents the epitome of Doing Well by Doing Good! The CFI Team is comprised of leaders and innovators in the alternative energy sector who have decades of experience in entrepreneurial management, investment syndications, and renewable energy.
Coastal Enterprises is a nationally recognized leader in rural development. CEI lends and invests money and provides business counseling services to companies in Maine and New England.
Pelletco: CleanFeet Investors:
James Knight Karen Labout