It marks the first institutional round of financing raised by Powerphase and will be used to drive international expansion of the company’s patented product Turbophase.
Powerphase has developed a compressed air injection technology for combustion turbines that increases capacity and improves efficiency. Turbophase is a modular gas turbine upgrade that Powerphase says “results in greater profits for electricity generators through reduced capital costs, increased revenue, and meaningful fuel savings”.
Greentech Capital Partners served as the investment bank for Powerphase on the transaction.
Hans Kobler, chief executive of EIP, said: “EIP invests in the full life-cycle of an electron: from generation through transmission and distribution to consumption.
“Natural gas generation is increasing at record rates globally, creating an attractive market for turbine upgrades. Powerphase technology drives gas turbine efficiency and savings, and we’re pleased to be a part of their growth.”
Michael Donnelly, the partner at EIP who led the deal, added: “The Powerphase team has developed a first-of-its-kind power and efficiency upgrade product for new and existing power plants that enables plant owners to add highly flexible capacity, while at the same time improve electrical grid efficiency.
“Powerphase has a proven team that will deliver high-value products to a global customer base.”
Powerphase chief executive Bob Kraft said: “We are very excited to have EIP as a partner to help accelerate our business globally. We believe the EIP partnership is as important as the investment capital. We look forward to building relationships with EIP’s network of utility partners during this exciting, rapid growth phase of our company.”
Last month, GE’s former chief technology officer, Dr Mark Little, joined the board of Powerphase. Little accompanies Bob McGrath, former executive vice-president of Nextera Energy, as the second independent director appointed to the Powerphase board.
During his time at GE, Little led one of the world’s largest and most diversified industrial research and technology organizations in the world that developed core technologies to help GE succeed in all of its core businesses, including energy, oil & gas and aviation. During his 37 year tenure at GE, he also led GE Global Research and was vice-president of GE Energy power generation.
In May it was also revealed that Indonesian state utility PLN is set to work with Powerphase to deploy the company’s dry air injection system in the country.
A memorandum of understanding commits PLN and Powerphase to co-operate on a phased implementation programme for the Turbophase system at PLN’s existing gas-fired power plants.
The intitial stage will include a feasibility study and two 50 MW projects, Powerphase said. This will be followed by full implementation of an additional 2 GW, which are planned to be installed by 2019.
In total, the deal is valued at $1.6bn and Powerphase said it could save Indonesia $11.6bn over 20 years in improved efficiency, as well as saving over 2 million tonnes of CO2 per year.
Included in the technology rollout will be engines from Caterpillar, control systems from GE, instrumentation from Emerson and valves from Bray.
IN-DEPTH FEATURE: Unlocking China’s gas turbine potential