A greenhouses startup business that uses industrial waste heat to run greenhouses efficiently was facing the challenge of raising enough capital to execute their first project.
The company unique design, when used with a combined cycle gas fired power plant, can increase energy efficiency from 50% to more than 85%, which equates directly to a 35% reduction in power plant carbon emissions.
The existing Greenhouse business in Alberta is mainly family based small operations in the range of 1 to 3 acres. However, for our client model to be viable it needed to be large scale, which was beyond the means of the startup company. An innovative business model was developed for greenhouse rental inclusive of heat and power, a model chosen to yield significantly increased profitability for greenhouse growers versus traditional greenhouses while providing the company with the ability to raise debt backed by lease agreements. The model also reduced the barrier to entry for smaller greenhouse growers, hence expanding the existing market of potential customers.
While the initial startup company couldn’t survive the severe decline in gas prices, we are working closely with the founder on a new business model that is more resilient to the price of fuel and currency.
The company unique design, when used with a combined cycle gas fired power plant, can increase energy efficiency from 50% to more than 85%, which equates directly to a 35% reduction in power plant carbon emissions.
The existing Greenhouse business in Alberta is mainly family based small operations in the range of 1 to 3 acres. However, for our client model to be viable it needed to be large scale, which was beyond the means of the startup company. An innovative business model was developed for greenhouse rental inclusive of heat and power, a model chosen to yield significantly increased profitability for greenhouse growers versus traditional greenhouses while providing the company with the ability to raise debt backed by lease agreements. The model also reduced the barrier to entry for smaller greenhouse growers, hence expanding the existing market of potential customers.
While the initial startup company couldn’t survive the severe decline in gas prices, we are working closely with the founder on a new business model that is more resilient to the price of fuel and currency.