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Truck electrification company Effenco nets C$10m in funding

Montreal-based Effenco Development has secured C$10 million in a financing backed by BDC Capital's clean technology practice, the Center of Excellence in Energy Efficiency, Investissement Québec and others.

Montreal-based Effenco Development has secured C$10 million in a financing backed by BDC Capital’s clean technology practice, the Center of Excellence in Energy Efficiency, Investissement Québec and others. Founded in 2006, Effenco provides technology to connect and electrify heavy vocational trucks.

PRESS RELEASE

MONTREAL, Sept. 10, 2020 /CNW Telbec/ – Effenco Development Inc. (“Effenco”) a leader in heavy duty vocational vehicle electrification and connected mobility, announces the closing of a CA$10 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, the President of Effenco, Mr. David Arsenault, and a private investor.

This round will permit the creation of 25 engineering jobs—mainly at its head office in Montreal— and 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.

Some 40% of greenhouse gas (GHG) emissions in transportation are generated by heavy vehicles. 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 announcement is part of an effort to extend these innovative solutions to new businesses in Canada, the United States and Europe.

“The economic recovery will take place through sustainable development. Now more than ever, it is necessary to make choices that combine the economy and the environment. This financial support demonstrates the confidence our investors have in our technology and our growth plan. Economic development and the fight against climate change go hand in hand, and our announcement today confirms this,” said David Arsenault, President of Effenco Development Inc.

“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 the Economy and Innovation.

“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 Investissement Québec
Investissement Québec’s mission is to play an active role in Québec’s economic development by spurring business innovation, entrepreneurship and business acquisitions, as well as growth in investment and exports. Operating in all the province’s administrative regions, the Corporation supports the creation and growth of businesses of all sizes with investments and customized financial solutions. It also assists businesses by providing consulting services and other support measures, including technological assistance available from Investissement Québec – CRIQ. In addition, through Investissement Québec International, the Corporation also prospects for talent and foreign investment and assists businesses with export activities.

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.