Israeli company TurboGen (TASE: TURB), which has developed high-efficiency combined heat and power (CHP) systems using micro turbines, has doubled in value within the first 10 days of its IPO. At the start of the month, the company raised NIS 18 million at a company valuation of NIS 143 million - TurboGen is today worth NIS 276 million.
The company is part of the growing global trend of independent electricity production, which seeks to enable every building to become a power station supplying itself with electricity.
Today there is a growing problem in supplying green electricity and the electricity industry cannot meet rising demand in consumption, mainly because of the growth of the electric vehicle industry, supply of renewable energy, and "peaks" in electricity consumption.
TurboGen specializes in the development of micro turbines to independently create electricity and heat in buildings and in particular buildings such as: senior citizens homes, hotels, apartment buildings, industrial buildings, etc., which represent a market of $20 billion annually in the US alone.
TurboGen's CEO Yaron Gilboa and chairman Tzachi Even-Ari lead 27 employees. The company has six patents undergoing various approval procedures. To date the company has raised about NIS 55 million, of which NIS 47 million was raised by issuing shares, NIS 18 million in an initial public offering (IPO), about NIS 5.3 million was received as a grant from the Israel Innovation Authority and about NIS 2.5 million was received, as a grant from BIRD energy.
TurboGen has signed a number of agreements to install its technology including an agreement signed with an American company called ENPG, which is a leading engineering services company in New York. The agreement stipulates that the company will work in cooperation to complete development of the first demonstration project in the US in New York.
After the installation at the demonstration site, and subject to receiving all the required regulatory approvals, the company will focus on entering its first target states in the US, which are New York and California as well as in Germany.
In Israel, the company has signed a memorandum of understanding with Supergas for exclusive cooperation in distributing micro-turbines. The company strives to stand in the technological forefront of local electricity and heat production of buildings in the 50 kilowatt to 1 megawatt production section.
The company has also signed a memorandum of understanding (MoU) with Super Stores, to install micro turbines for Caterpillar. As part of the agreement, Super Stores will work to promote investment by Caterpillar in the company and projects of the company.
The technology that TurboGen uses on the commercial market was developed by RJet, a subsidiary of Rafael Advanced Defense Systems, which was founded in 2001 in order to develop propulsion systems for the Ministry of Defense of the State of Israel and was part of the development of Israel's first jet engine. In 2014, RJet decided to use the knowhow and experience gained in advanced propulsion systems for the micro turbine market.
Micro turbines exploit high energy efficiency and the costs of building and maintaining them are lower than existing solutions in the 50 kilowatt to 1 megawatt category. The main advantages of Turbogen's products are: reducing electricity costs, reducing heating costs, withstanding power outages from the Israel Electricity Corp., cutting greenhouse gas emissions, lows costs of installing the system, ability to work at the same time with different types of fuels and high energy efficiency.
Published by Globes, Israel business news - en.globes.co.il - on December 12, 2021.
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