Montreal’s Effenco Raises $10 Million from BDC and others

Founded all the way back in 2006, Montreal’s Effenco has developed hybrid-electric technology for heavy duty commercial vehicles, including long-haul trucks, cement mixers, garbage trucks and more. Their technology allows for the gas engines on these vehicles to be bypassed while they are not moving. Meaning that while the garbage man is filling up the truck with trash, he’s no longer breathing in diesel emissions and when workers are pouring concrete, they too have one less hazard to worry about.

Now, hot off the heels of a $4.25 million grant from SDTC in June, this company headquartered along the banks of the Lachine Canal has raised a $10 million VC round as well. Participating investors include BDC Capital, the Center of Excellence in Energy Efficiency (C3E) and Investissement Québec, along with the President of Effenco himself, David Arsenault, and another investor. The funds will be deployed to create 25 new engineering jobs here in Montreal, and to establish a European office in Norway.

“The economic recovery will take place through sustainable development. Now more than ever, it is necessary to make choices that combine the economy and the environment. This financial support demonstrates the confidence our investors have in our technology and our growth plan. Economic development and the fight against climate change go hand in hand, and our announcement today confirms this,” said Arsenault.

In a statement Effenco says about 40% of greenhouse gas emissions in transportation are generated by heavy vehicles. Their technology tackles this problem by electrifying propulsion and on-board equipment, using a unique ultracapacitor-based technology. This in turn reduces fuel consumption and operating costs, as well as noise and GHG emissions.

“Effenco’s technology is tried and tested in Canada, as well as in other parts of the world, as evidenced by its most recent deployment in France, with success. David and his team’s contribution to the adoption of best environmental practices in the transportation industry is reaching new heights today. We are proud to support Effenco’s progress and to accompany its team for the next stage of growth of the company,” added Benoit Forcier, Director of BDC’s Cleantech Practice.

The underlying technology leverages a database collected over millions of hours of vehicle operation and uses it to feed Effenco’s AI algorithms. This ensures that electrification systems are delivering reliable performance across a wide range of applications and vehicles. The result is a cost-effective electrification solution in terms of dollars per ton of CO2 emissions prevented.

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