OTI Greentech Group, a provider of sustainable cleantech solutions, has closed a round of expansion financing, raising a total of CHF4m (EUR3.3m).
The funding was led by Wermuth Asset Management’s Green Gateway Fund, which invests in energy and resource efficiency growth companies throughout Europe.
The funding marks a solid base for the long-term expansion plans of the company. In total, the financial commitment of Green Gateway Fund is CHF7.2m. The second tranche is expected in 2013.
With the cleaning of tanks and ships, the remediation of oil-contaminated land or the separation and recycling of oil from waste streams, OTI Greentech covers a broad range of next generation applications for oil-related contamination and waste. OTI Greentech’s awarded and patented EcoSOLUT products have been used by various international shipping, oil service and waste management companies. EcoSOLUT products are high-performance “green” chemicals, which reduce cleaning cycles and meet more advanced health, safety and environmental standards than traditional chemicals used in the industry.
The funds will be used to expand the business mainly in North America, the Middle East and Russia and to strengthen the company’s intellectual property portfolio.
“We have seen strong interest from international investors in general. Completing the expansion funding was an important milestone for OTI Greentech. We are redefining standards in the industry in regards to efficiency, safety and sustainability. In the Oil and Energy sector our products show unique characteristics in treating waste streams from oil production, particularly with unconventional oil reservoirs such as oil sands and heavy oil,” says Stephan Rind, president of OTI Greentech. “We are also pleased by our new lead investor, the Green Gateway Fund. The fund’s principals have vast experience in the energy and resource efficiency sector and a powerful network to support our business growth.”
The Green Gateway Fund will appoint one non-executive member to the board of directors of OTI Greentech Group.
Green Gateway Fund partner Casper Heijsteeg says: “We are delighted to have completed our investment in OTI Greentech. We see substantial potential for the company’s continued growth, and we believe we can support its expansion by investing new capital into the business, as well as by leveraging our own expertise and networks in this field and helping the company to access new growth markets, including Russia.”
Mountain Partners advised OTI Greentech in respect of this funding round.
