New funding

PlascoEnergy Group Inc. is raising $54 million to reach into new Canadian and international markets and more than double its 85 staff at Ottawa headquarters. The privately held green energy company has plans to build plasma gasification plants in Red Deer, Plasco.JPGand at unspecified locations in Ontario and Spain. To help meet this goal, PlascoEnergy is selling $35 million common shares to Greenwich, Ct.-based private equity firm First Reserve Corp. It will raise a further $14.3 million from investors exercising purchase rights and $4.5 million more through a share buy-in by Black River Asset Management and Spain’s Hera Holdings S.A. The rest of the financing will come from debt financing, according to CEO Rod Bryden. PlascoEnergy’s technology converts household waste into clean fuel used to generate electricity. It also produces and an inert material which can be used to make concrete and asphalt. Operating at 85% capacity, the company’s demonstration plant on Trail Road was recently given the go ahead to supply gas to Hydro Ottawa. The three proposed new plants, finalized on paper, will proceed pending satisfactory results from the trial installation. PlascoEnergy has now raised more than $90 million in funding since its inception in 2005.

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