Truck Electrification Company Effenco Development Receives $7.6MM in Financing
SEP 15, 2020 - 7:15 am
Effenco Development, a provider of heavy duty vocational vehicle electrification and connected mobility, closed a C$10 million ($7.6 million) round of financing with the participation of the Business Development Bank of Canada (BDC), the Center of Excellence in Energy Efficiency (C3E), Investissement Québec, David Arsenault (president and CEO of Effenco) and a private investor.
This round will allow Effenco Development to pursue its international growth plans, including the establishment of an office in Kongsberg, Norway, to increase its sales reach in the European market. Effenco Development also will hire 25 new employees — mainly engineers — at its head office, while pursuing the commercialization of its data capture capabilities.
Effenco Development’s patented technology electrifies and connects heavy duty trucks to reduce their greenhouse gas emissions. Effenco Development’s current technology electrifies the propulsion and on-board equipment of vocational heavy duty trucks using an ultracapacitor-based technology. Effenco Development leverages its database collected over millions of hours of vehicle operation and uses it to feed its proprietary artificial intelligence algorithms.
This financing round follows Effenco Development’s 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 distribution network established in 10 countries.
‘’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,” Arsenault said. “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.’’
“The electrification of transportation is a priority for our government,” Pierre Fitzgibbon, Quebec’s minister of economy and innovation, said. “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.”
Effenco Development systems are currently used by 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.
‘’The existing 12 Effenco fitted collection vehicles are performing as intended,” Rocco DiRico, deputy commissioner of support services for New York’s department of sanitation (DSNY), said. “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 Development’s technology is compatible with 1 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,” Benoit Forcier, director of the cleantech practice at BDC, said. “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.”
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