A Tees Valley clean tech firm is set to expand into US and Canadian markets on the back of multimillion-pound funding rounds.
Set up in 2009, Nova Pangaea Technologies converts discarded plant biomass into natural biochemicals and biofuels, replacing the need for industries to use fossil fuels.
The firm, based at Wilton, Redcar, has seen significant growth in the last year, as a result of its two funding rounds with the Northern Powerhouse Investment Fund (NPIF), including a 45% rise in staff numbers since January 2020.
The company, which has made a number of senior appointments in recent months to take staff numbers to 17, has also secured a string of plant trials with large forestry, agriculture and oil and gas multinationals.
Notably, it has secured a large engineering project in Pakistan and is set to enter the U.S and Canadian markets.
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.
The investment was in addition to funding from existing investors, including Cambridge Angels and Par Equity, and it used the funds to develop its technology process from its plant in Redcar.
This year it received a further £1.1m investment from NPIF – Mercia Equity Finance, the Ƶ Government’s Future Fund and existing shareholders, which it is using to scale the business significantly, which has since led to a number of significant deals worth £290,000.
It also led to appointments to Nova Pangaea’s executive and senior management team to facilitate growth, including the arrival of new CFO Neil Guilder, CTO Dr Neil Hindle and senior team, Dr Mike Donaghy and Dr Neil Marshall as senior engineers.
In January the company announced a new process breakthrough relating to its proprietary Refnova technology and it has now set its sights on future growth, with ambitious plans to grow its headcount and its client base, both in the Ƶ 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.”
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.”
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.”
