Fredericton-based CleanTech company Stash Energy has raised about $500,000 in equity investment from the New Brunswick Innovation Foundation and Island Capital Partners.
The funding will help the company prepare for a full launch of its Stash M1 Comfort System in 2019. It is now carrying out three pilot projects with the system in P.E.I., and is eyeing international markets through recent work in Colorado and Europe.
Last year, Stash Energy raised $200,000 from NBIF, which is now making its second investment worth $250,000 in the company. Island Capital, the Charlottetown-based investment fund, is investing $255,000 in its first investment in Stash.
“We are launching our product in early 2019 and looking at the P.E.I and New Brunswick markets first," said CEO Jordan Kennie in an interview. “Our sales goal for the end of 2019 is 250 units but we’re also working with Hydro Ottawa so we’re also looking at the Ontario market and then growing from there.”
Stash Energy has developed a system that works with conventional residential heat pumps to store energy for later use. Companies around the world are working on energy storage systems so that consumers can store electricity from the grid during inexpensive, off-peak hours and use stored energy when demand is highest.
The Stash M1 comfort system is the company’s second-generation product, and Stash believes it will be the most cost-effective and energy-efficient heating and cooling solution on the market when it is launched next year.
“Clean energy is an urgent priority across the globe, and we are incredibly proud to support a local and very competitive solution,” said NBIF Director of Investments Ray Fitzpatrick in a statement. “After competing in our 2017 Breakthru competition, they’ve made tremendous strides to become leaders in this industry.”
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Stash Energy got its start in the Technology, Management and Entrepreneurship program at University of New Brunswick, where Kennie, COO Daniel Larson, and CTO Erik Hatfield were students. The trio has been working with the City of Summerside since inception to beta test the M1 system.
“We were attracted to this opportunity by the maturity of their business plans, coupled with the strength of the three founders, one of whom is a native Islander,” said ICP Investment Director Paul Lypaczewski. “Having prototyped their solution in close collaboration with the City of Summerside, they are now ready to expand their team and begin full-fledged production working with Maritime Geothermal, our region’s premier manufacturer of sustainable energy systems.”
More recently, the company has attended the federal government’s Canadian Technology Accelerator in Colorado. In the spring, Kennie also traveled to Paris, joining a trade mission organized by the Canadian Trade Commission Service for artificial intelligence and CleanTech companies. The trip was successful enough in building relationships that Kennie is planning to return in the summer of 2018.
“The experience was incredible because we had no idea of how to enter an export market,” said Kennie. “It almost feels like you’re starting from scratch. They really helped us get those first contacts at the power companies in France and in Europe in general.”
He also got a chance to meet Prime Minister Justin Trudeau at a reception at the Canadian Embassy, which he enjoyed.
“You don’t often have the opportunity to have a conversation with the leader of your country and talk about your ambitions, your passion and your business.”
Disclosure: NBIF is a client of Entrevestor.
