Teeside-based Nova Pangaea Technologies, which has found an innovative way to use non-food biomass for the creation of biofuels and other chemicals, has found a further £900,000 in investments following the successful trials of its new technology
According to Business Up North, NPIF - Mercia Equity Finance, a managed equity fund from Mercia and the Northern Powerhouse Investment Fund, has supplied the funding, as well as the UK Government’s Future Fund and existing private investors, all of whom will support Nova Pangaea during the run-up to a planned Series A investment later in 2020.
The REFNOVAÒ technology converts materials such as woody residues, wheat straw and sugar cane, using them as the base to manufacture biofuels and other chemicals, which will also help provide additional revenue for farmers, as well as reduce the dependence of fossil fuels without needing land better used for crops suitable for food production.
With the investment in place, Nova Pangaea has increased its executive management team by appointing Neil Guilder as CFO, Dr Neil Hindle as CTO and Peter McGenity as CCO.
Neil Guilder has over 25 years’ experience leading the development financing and corporate growth of SMEs as CFO.
Dr Neil Hindle will lead the technical development and operations of the REFNOVAÒ patented process with his 20 years of industry experience, and Peter McGenity will use his 30 years of executive experience in renewable energy, ethanol and agri-processing to drive the company’s commercial development.
Nova Pangaea completed its demonstration plant in Redcar at the end of 2019, and following the trials found its first international customer in March 2020. The latest funding round brings the total investments raised to £3 million.
Sarah Ellerby, CEO at Nova Pangaea Technologies explained that the last six months have been a transformative period for the firm, as they move towards the upcoming Series A financing.
“This oversubscription of existing shareholders and support from Future Fund is a key indicator of the level of commitment from our shareholders to execute on the high-level of commercial interest in our technology. With the executive team in place, we are now in a position to execute the growth plan,” she added.
Simon Crabtree, Investment Manager with Mercia, said that the technology has the potential to significantly reduce the reliance on fossil fuels, as well as the creation of hundreds of jobs over the next few years.
Grant Peggie, Director at the British Business Bank, commented: “We are pleased to continue this [NPIF] support, and are proud to work in partnership the Thames Valley Combined Authority and with Mercia and our other fund managers to make a real impact on the small business community, creating jobs and supporting innovation to unlock the North’s potential.”
The NPIF project is supported by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.
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