cleantech analysis and consulting

Learn more about Kachan & Co. cleantech capital matchmaking

Kachan in Greenpeace International

“For several quarters now, there have been roughly four times as many cleantech IPOs each quarter in China than either North America or Europe. And much higher returns are being made. It’s time for investors and entrepreneurs in North America, Europe and elsewhere to recognize this. The huge cleantech returns in China are getting too little attention.”

— Dallas Kachan

Green Tech Investments Totally Bomb in the Third Quarter - October 4, 2010

more

Syngas technology to reduce diesel emissions and increase fuel efficiency

Cleantech company seeking capital as of February 25, 2011
Categories:
The reduction of emissions from diesel engines continues to be challenging for engine manufacturers. Today, it results in engines that under perform, have excessive fuel penalties and/or require frequent maintenance. This company solves these issues by optimizing the engine through the use of a miniaturized onboard syngas generator. The syngas generator creates hydrogen for use in engine aftertreatment treatment systems to facilitate active regeneration of diesel particulate filters, increase nitrogen oxide reduction capabilities and thermally manage selective catalyst reduction systems.
Executive summary of company's business: 

NxtGen Emission Controls' initial target market is performance improvement of diesel emissions aftertreatment systems. Current exhaust aftertreatment systems that have been developed to reduce Particulate Matter (PM) and Nitrogen Oxide (NOX) are complex and have difficulties working in low exhaust temperature conditions. By providing an efficient, very low temperature capability which has not been provided by other solutions, this conpany's syngas technology addresses a specific and unique market opportunity.

The diesel aftertreatment market is a multi-billion dollar market and spans many different market segments. This company’s initial target markets include the North American Medium Duty Truck market for retrofit and vehicle and engine manufacturer programs, which together total over $15 Billion dollars. Additional market opportunities exist for the off-road diesel and the stationary generator market. The market comprises of both a retrofit (aftermarket) component and original equipment manufacturer fitment component.

In addition, the gasoline engine market is undergoing new regulations that will force auto manufacturers to apply new advanced technology, such as syngas, to meet fuel efficiency standards.

Competitors: 
Huss, Environmental Solutions Worldwide (ESW), Johnson Matthey, Eminox
Differentiation vs. competitors: 
This company’s technology leverages the inherent advantages of hydrogen in chemical conversion processes. The result is an improved temperature range performance for diesel aftertreatment systems and a lower fuel penalty. The company's technology also operates as needed with no operator intervention while the vehicle is in operation. Most competing technologies need action from the vehicle operator and operate only when vehicle is at at idle or off.
Key team members: 
Jeremy W. Holt, President and Chief Executive Officer has 30 years automotive experience, including President Ricardo Inc, Executive Director Ricardo PLC an Engine and Vehicle technology and consulting company, and VP Product Engineering and Marketing T&N PLC Division for engine technology and product supply to Tier 1 manufacturer. Erik Johannes, VP Product Engineering is the NxtGen founder, from QuestAir Technologies, Ballard Power Systems - chemical engineering, vision, ideas and knowledge. Ed Richards, Advisor - Retrofit Business Development is the former President ECS, VP Sales and marketing Lubrizol. Experience in emissions and retrofit market, a specialty in sales, marketing, fund raising and government relations. Ed is retained on an advisor role to apply his expertise on getting retrofit product to the market promptly and lucratively. Gloria D’Anna, Executive Director of Sales over 25 experience in automotive and commercial vehicles including Director of Business Development for Commercial Vehicles, Military and Off-Highway for Ricardo North America. She has significant experience in sales and purchasing with Truck and engine manufactures as well as tier 1 suppliers. Jim Mann, VP Finance and Operations, from Mustang Survival Corp (Marine and Aerospace), Jantzen Canada, - Accounting and operations experience, growth, private and public company expertise, highly regulated markets.
Existing investors and capitalization details: 
Current investment in the company is $25 million comprised of Common - $2 million; Series A-1 - $5.4 million; Series B-1 $17.6 million. Primary investors are Altira Technology Fund (Series B-1), and Series A-1 and B-1 shareholders Working Opportunity Fund, Yaletown Ventures and BC Advantage.
Capital sought & use of proceeds: 
The company is seeking an investment of $5M in 2011 to increase marketing, extend its cash burn, ramp up production to maximize its retrofit business and expand OEM support for OEM development agreements. $10 million is being sought in 2012 to extend its syngas business on other applications in the retrofit market and enter the gasoline combustion market.
Characteristics of ideal investors: 
Venture investors in the cleantech industry that understand the opportunity of large vehicle programs. Vehicle or engine manufacturers that are looking add a differentiating technology to their portfolio.
Expected close date: 
May, 2011
Financial statements: 
application/pdf iconNxtGen Draft FincStmt Dec2010 (2).pdf
Company name: 
NxtGen Emission Controls
Contact name: 
Jim Mann
Contact email: 
jim.mann@nxtgen.com
Web site: 
http://www.nxtgen.com

Location

220-13155 Delf Place
Richmond, BC V6V 2A2
Canada
Phone: 604-688-7841 ext. 107
Javascript is required to view this map.

Kachan & Co. (Kachan) is not registered as an investment dealer or advisor with any securities commission or similar regulatory authority in any jurisdiction and cannot and will not have any involvement in any transaction that may take place between the Company above and any prospective investor. Kachan will not a) discuss any matters with the Company or investors that requires familiarity with securities, b) advise the Company or investors on the merits of particular investments, securities, any proposed listing of securities on any exchange or quotation service or otherwise provide securities advice, c) participate in negotiating the terms of any transaction, or d) handle funds or securities in connection with any transaction.

Kachan has not verified the information provided by the Company and makes no warranties or representations regarding the truth, accuracy or completeness of the information provided by such. Kachan is not responsible for the release of any confidential, restricted or proprietary information provided by the Company above.

© 2010-2011 Kachan & Co. | privacy policy | terms of use