Tees Valley based clean tech company Nova Pangaea Technologies has experienced significant growth as a result of its two funding rounds with the Northern Powerhouse Investment Fund, including a 45 per cent increase in staff numbers since January 2020.
The company, which has invested in a number of senior recruits in recent months, taking its total full-time members of staff to 17, has also secured a string of plant trials with large forestry, agriculture and oil and gas multinationals. It has also secured a large engineering project in Pakistan and is set to enter the U.S and Canadian markets.
Nova Pangaea’s world-first patented technology, processes ‘non-food’ plant residues, such as sustainable wood, straw and other crop residues, and uses it as a basis for the production of biocarbons, biochemicals, biopolymers or drop-in for advanced biofuels such as bioethanol, which can be blended into petrol. The innovation not only offers the potential to significantly cut carbon emissions and reduce reliance on oil without using land or crops suitable for food, but also provides new sources of income for industries which produce large amount of plant residues.
Established in 2009, the company received an initial investment of £2.3m in 2019 as part of a funding round led by NPIF – Mercia Equity finance, which is managed by Mercia and is part of the Northern Powerhouse Investment Fund. This was in addition to funding from existing investors, including Cambridge Angels and Par Equity. This injection was used to develop Nova Pangaea’s first-of-its-kind technology process from its plant in Redcar, Teesside.
In 2021, the clean tech firm received a further £1.1m investment from NPIF – Mercia Equity Finance, the UK Government’s Future Fund and existing shareholders. The funding was used to scale the business significantly, validating the revenue model which has since led to a number of significant deals worth £290K.
It also enabled the strengthening of Nova Pangaea’s executive and senior management team to facilitate growth, with the appointment of new CFO Neil Guilder, CTO Dr Neil Hindle and senior team, Dr Mike Donaghy and Dr Neil Marshall as senior engineers.
In January 2021, the company announced a new process breakthrough relating to its proprietary REFNOVA technology, which will see the significant reduction of consumers’ capital expenditure and create attractive economic returns.
Nova Pangaea will now set its sights on future growth, with ambitious plans to grow its headcount and its client base, both in the UK and internationally. The company is also set for a full Series A funding round later this year.
Sarah Ellerby, CEO of Nova Pangaea Technologies, said: “2020 was a pivotal year for us. We have bolstered the executive and senior team, accelerated the validation of our process even further and, most recently, hit a game-changing technology breakthrough to strengthen our value proposition. NPIF has been with us throughout our journey and the support from the Mercia team has been invaluable to our growth. We are excited to continue on that upwards trajectory as we look forward to a full Series A funding round.”
Tees Valley Mayor Ben Houchen said: “Nova Pangaea is a great example of the innovative, clean growth businesses we want to see more of across Teesside, Darlington and Hartlepool and it’s great to hear this funding will help it grow nationally and globally. In the face of the difficulties caused by the coronavirus pandemic, it’s more important than ever that these businesses have access to the financial support they need to succeed and I’d urge any business to get in touch with NPIF and see what they can do for you.”
Simon Crabtree, Investment Manager at Mercia, added: “Nova Pangaea is an excellent business based in the Tees Valley region that has made a significant impact on both a national and international scale. A truly circular business, it is working towards breaking our reliance on oil, while meeting the world’s energy needs, so we are delighted to be working with the industry-leading team.”
Sean Hutchinson at British Business Bank, said: “Nova Pangaea is a clear example of a business that is not only utilising NPIF investment to continually innovate and grow, but also making an impressive contribution towards the North’s efforts in achieving net zero targets. In what has been a disruptive year for many, they have looked at ways to adapt their offering, creating new opportunities in the region and strengthening international appeal of the Northern Powerhouse. We look forward to following its continued progress in the coming years.”
The Northern Powerhouse Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.
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