MONTREAL--(BUSINESS WIRE)--Effenco Development Inc. (“Effenco” or the “Company”), a leader in heavy duty vocational vehicle electrification and connected mobility, announces the closing of a CA$10 million round of financing (approximately US$7.5 million), with the participation of the Business Development Bank of Canada (BDC), the Center of Excellence in Energy Efficiency (C3E), Investissement Québec, the President of Effenco, Mr. David Arsenault, and a private investor.
This round will allow the Company to pursue its international growth plans, including the establishment of an office in Kongsberg, Norway to increase its sales reach in the European market. The Company will also hire some 25 new employees—mainly engineers—at its head office, while pursuing the commercialization of its data capture capabilities.
Effenco’s patented technology electrifies and connects heavy-duty trucks to reduce their green house gas emissions. Effenco’s current technology electrifies the propulsion, as well as on-board equipment, of vocational heavy-duty trucks, using a unique ultracapacitor-based technology. Thanks to this innovative system, the user reduces fuel consumption and operational costs, as well as noise levels.
Effenco leverages its database collected over millions of hours of vehicle operation and uses it to feed its proprietary artificial intelligence algorithms. This A.I. technology ensures that Effenco’s electrification systems are delivering reliable performance across a wide range of applications and vehicles. Effenco’s added value lies at the crossroads of its extensive knowledge of vehicle electrification technology and this extensive database, resulting in the most cost-effective electrification solution in terms of dollars per ton of CO2 emissions avoided.
This financing round follows the Company’s exceptional 2020 fiscal year in which a record number of its hybrid units were sold in the U.S., Canadian and European markets—through both direct sales and a growing distribution network established in 10 countries—and occurs in response to robust demand for the Company’s electrification technologies for heavy-duty vocational vehicles.
The funds raised will give further momentum to Effenco’s goal of developing the world’s most cost-efficient heavy vehicle electrification solutions to reduce greenhouse gas emissions.
‘’Our solution is supporting heavy-duty truck fleet operators around the world in their transition towards vehicle electrification with the most advanced and cost-effective solution. The cities of Paris and New York, as well as the port of Los Angeles, have put their trust in Effenco’s technology to help them achieve their greenhouse gas reduction objectives,’’ said David Arsenault, Effenco’s CEO.
“The electrification of transportation is a priority for our government. We have all the resources required, such as abundant hydro-electric power, companies and specialized organizations, as well as renowned researchers, to propel this cutting-edge sector and make Quebec a world leader in this field. I salute the impressive growth of Effenco and its contribution to the achievement of Quebec's environmental and economic goals,” said Pierre Fitzgibbon, Quebec’s Minister of Economy and Innovation.
Effenco systems are currently used by a growing number of leading companies in New York and California, as well as across Canada, France and Norway, on waste collection vehicles, port terminal tractors, bucket trucks, dump trucks and delivery trucks.
Rocco DiRico, Deputy Commissioner of Support Services for New York's Department of Sanitation (“DSNY”), stated, ‘’The existing 12 Effenco fitted collection vehicles are performing as intended. We are now adding 14 units to our newest truck orders, bringing the total to 26, and are hoping the Effenco Stop/Start technology will succeed in helping the DSNY meet NYC’s goal to reduce greenhouse gas emissions by 80% by 2035.”
Effenco’s unique technology is compatible with one million heavy-duty vocational trucks sold each year in North America and Europe.
“Effenco’s technology is tried and tested in Canada, as well as in other parts of the world, as evidenced by its most recent deployment in France, with success. David and his team's contribution to the adoption of best environmental practices in the transportation industry is reaching new heights today. We are proud to support Effenco's progress and to accompany its team for the next stage of growth of the company,” added Benoit Forcier, Director, Cleantech Practice at BDC.
About Effenco
Founded in 2006, Effenco connects and electrifies heavy vocational trucks to reduce operational costs and emissions with a vehicle electrification technology and a fleet management software. The technology, resulting from over 10 years of research and development is based on millions of hours of real operating data. It leverages a unique electric powertrain architecture based on ultracapacitors and proprietary A.I. algorithms. Effenco offers the most-cost effective electric vehicle technology on the market in terms of dollars per ton of CO2 emissions avoided. Its technology has been validated by a growing list of blue-chip customers in the U.S., Canada and Europe.
About BDC
BDC is the only bank devoted exclusively to entrepreneurs. It provides access to financing, as well as advisory services, to help Canadian businesses grow and succeed. Its investment arm, BDC Capital, offers a wide range of risk capital solutions. For more than 75 years, BDC’s only purpose has been to support entrepreneurs in all industries and all stages of growth. For more information and to consult more than 1,000 free tools, articles and entrepreneurs’ stories, visit bdc.ca.