Toronto-based EnergyX Solutions, which recently graduated from the Creative Destruction Lab-Atlantic, is establishing an office in Halifax with the help of a loan from the Atlantic Canada Opportunities Agency.

ACOA issued a statement on Friday saying it will lend the company $500,000 through the federal government’s Regional Economic Growth through Innovation program. The company has hired its first Halifax-based employee and expects to expand the office to six people by the end of 2019.

EnergyX Solutions’ software technology determines how a building is using energy and identifies ways it can improve its overall performance. The end result is less energy consumption, fewer greenhouse gas emissions and cost savings for businesses and home owners.

“We have one main mission, which is to get buildings to take action toward energy efficiency,” said EnergyX CEO Nishaant Sangaavi in an interview at the Atlantic Venture Forum last week.

EnergyX has created several online platforms that enable utilities and other stakeholders to engage with their customers. It helps the utilities to understand their customers’ energy use and provide ways to increase efficiencies and save money.

Sangaavi said utilities like the product because they save $4 in generation costs for every $1 of energy  savings on behalf of their customers.

He added that the Halifax office – which he hopes to continue to grow in coming years – will be a sales base for the East Coast and may provide product development for the company. 

“Halifax is becoming a hub for us in Atlantic Canada and the Northeastern U.S.,” he said, adding that about 40 percent of the company’s sales prospects are in these two markets.

Started in 2016, EnergyX in now increasing monthly recurring revenue by 10 percent month-on-month. The company has about 25 employees in Toronto, and has raised $2.3 million in equity capital.

"EnergyX has strong roots in Atlantic Canada, as evidenced by our work with organizations such as EfficiencyOne and efficiencyPEI that have licensed our technology to help buildings across the Maritimes become more energy efficient,” said Sangaavi in the ACOA statement. “The funding from ACOA will help us set up our second Canadian office out of Halifax, significantly grow our team and have greater access to utilities in the East Coast, with the eventual goal of helping homes and businesses take action towards energy conservation.”

Disclosure: ACOA is a client of Entrevestor.