Entrade Energiesysteme AG, a maker of technology that turns agricultural and food waste into power, plans to raise money on the Nasdaq in a bid to boost production and expand.
The company hopes to secure about 26 million euros ($28 million) on the Nasdaq Private Market in New York, a platform for trading shares in private companies, Chief Executive Officer Julien Uhlig said in an interview. The fundraising is a first step toward an initial share sale, he said.
“The proceeds will be used to grow our production facility, expand in the U.K. and sub-Saharan Africa, and further develop our technology,” Uhlig said from London. “We’re planning to expand production from 25 (system) units a month to 100 and grow our revenue from 5 million euros last year to more than 100 million euros in the next two years.”
Entrade’s systems enable businesses and industry to produce their own power on-site. The technology uses biomass including wood pellets, agricultural and food waste to generate heat and electricity. The machines currently can process a mix containing 30 percent plastics, Uhlig said, and the Dusseldorf-based company plans to develop this capability further to target the sub-Saharan market.
Generating power at the point of use is becoming increasingly popular among energy-intensive businesses and industries looking to curb their reliance on the grid and reduce exposure to fossil fuels. Entrade’s units can shave 20 percent to 30 percent off bills, according to Uhlig.
The company this year plans to expand in the U.K. by targeting farm owners, hotels, restaurants and municipal buildings. Entrade installs and operates the units and customers pay for the power. It’s working in Nigeria to power public buildings and also the headquarters of the engineering company Julius Berger Nigeria Plc, Uhlig said.