ClearEdge Power Inks $73.5M Series E
New investor Artis Capital Management led this round, which also included Austrian-based Güssing Renewable Energy; Southern California Gas Company, a regulated subsidiary of Sempra Energy (NYSE: SRE); and existing investor Kohlberg Ventures.
SUNNYVALE, CA, ClearEdge Power, a leading manufacturer of scalable, high-efficiency stationary fuel cells, today announced that it has raised $73.5 million in Series E financing through the sale of new shares and the conversion of previously issued promissory notes.
New investor Artis Capital Management led this round, which also included Austrian-based Güssing Renewable Energy; Southern California Gas Company, a regulated subsidiary of Sempra Energy (NYSE: SRE); and existing investor Kohlberg Ventures. The financing will be used to further grow customer adoption in key commercial markets, expand internationally and develop and commercialize new products.
"As a leading producer of distributed generation solutions for light commercial applications, ClearEdge Power is changing the way businesses across the world get their energy," said ClearEdge Power President and CEO Russell Ford. "This new investment provides the capital necessary for ClearEdge Power to build on our already strong foundation by entering new markets, advancing our technology and commercializing new products."
According to a recent report by Pike Research, in the last two years, the stationary fuel cell industry has seen a 27 percent compound annual growth rate. It also estimates solutions that provide buildings with base load power, such as the ClearEdge5 system, are primed for significant growth. In fact, the clean technology market intelligence firm estimates sales for the sector to surpass 1.2 million units annually by 2017. With a scalable solution that can be sized to meet each individual energy needs, ClearEdge Power is poised to address the growing global demand for continuous onsite power systems.
"The fuel cell industry is reaching an important tipping point and over the next 18 months a clear gap will begin to emerge between companies that have strong products and clearly defined markets and those that do not," said Dr. Kerry-Ann Adamson, Research Director, Pike Research. "In the recent Pike Pulse: Prime Power Stationary Fuel Cell report, ClearEdge Power scored very highly. The company's score was due to ClearEdge Powers' combination of market strategy and ability to execute to meet demand. ClearEdge Power also clearly differentiates its product offering (hitting a real power demand sweet spot) enabling it to reach many verticals with one product."
The financing follows a great deal of success for ClearEdge Power, including year-over-year revenue growth of more than 480 percent in the recently completed second quarter of 2011. Additionally, the company has created over 150 high-tech jobs in the last three years, representing more than 300 percent growth. Recent highlights include the acquisition of several new customers, a DOE grant to support further adoption of its technology and expansion into international markets. ClearEdge Power has sold systems to a variety of industries, including multi-tenant housing, hospitality, education, utilities, public sector and residential. In June, the company secured a $2.8 million combined industry and government award from the Department of Energy's Pacific Northwest National Laboratory. These milestones are helping the company expand to the Northeastern United States and South Korea, the latter spurred by a 2010 deal with LS Industrial Systems.
About ClearEdge Power
ClearEdge Power is a global, privately held, technology company leading the way for smarter, cleaner on-site energy systems focused on commercial, institutional and residential buildings. The company designs, manufactures and markets the ClearEdge5 system, a proven fuel cell appliance that cleanly converts natural gas to electricity and heat, offering both significant financial and energy savings, as well as a greatly reduced impact on the global environment. The ClearEdge Power corporate management systems are certified to ISO 9001 and ISO 14001.
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