Turbogen, a company that specializes in the development of multi-fuel micro-turbines for the self-production of electricity and heat in buildings and structures, completed last Thursday, November 18, 2021, the public offering of shares in the Tel Aviv Stock Exchange, raising approximately NIS 18 million at par. Of about NIS 143 million and began trading under the symbol Turb.
The underwriter of the offering was Extra Mail Underwriting
Turbojan was represented by attorneys Udi Efron, Omar Tikolsky and Yotam Dauber from the firm of M. Firon & Co.
TurboGen, is leading the green revolution and the growing global trend of self-generation of electricity. Following the revolution any building in the near future, will become a power plant that provides itself with electricity.
Today, the problem of electricity transmission is growing green, and the electricity industries can not cope with the consumption loads that arise mainly with the growth of the electric vehicle industry, the transmission of renewable energies and “peaks” in electricity consumption.
TurboGen specializes in the development of multi-fuel micro-turbine for self-generation of electricity and heat in buildings and structures such as: nursing homes, hotels, apartment buildings, industrial buildings, etc. which constitute a market of about $ 20 billion per year in the United States alone.
Turbogen currently has about 26 employees and holds 6 patents in various approval processes. To date, the company has raised about NIS 55 million, with about NIS 47 million raised by issuing shares, NIS 18 million in an initial public offering, about NIS 5.3 million received as a grant from the Innovation Authority and about NIS 2.5 million received as a grant from the Bird Energy Fund.
The company has a number of agreements signed to implement the technology, including an agreement signed with an American company called ENPG, which is a leading engineering and energy services company in the state of New York. The agreement states that the companies must work collaboratively to complete the development of the first demonstration project in New York United States.
Once installed on the demo site, and subject to obtaining all required regulatory approvals, the company will focus on penetrating first destination countries in the United States which are New York and California and in Europe Germany.
In Israel, the company entered into a memorandum of understanding with Supergas for an exclusive cooperation for the distribution of the micro-turbines. The company aims to be at the technological forefront of local production of electricity and heat in buildings in the consumption category of 50 kilowatts to 1 megawatts.
In addition, the company signed a memorandum of understanding with Am Super Stores, which requires the implementation of the micro-turbine with Caterpillar, as part of the agreement, Super Stores will work to promote Caterpillar’s investment in the company and / or the company’s projects.
The technology used by the company for the civilian market was developed by a subsidiary of Rafael, Ar-Jet, which was established in 2001 with the aim of developing propulsion systems for the defense system of the State of Israel and is a partner in the development of the first Israeli jet engine. In 2014, Ar-Jet decided to use the knowledge and experience it has accumulated in the field of advanced propulsion systems for the micro-turbine market.
The micro-turbine has a high energy efficiency and its construction and maintenance costs are lower than existing solutions in the 50 kilowatt to 1 megawatts category.
The turbines are currently powered by natural gas, biodiesel and diesel and are primarily intended for the CHP systems market in Europe and the United States, where there are advanced natural gas transportation infrastructures. Most often, the micro-turbines will be installed in the basements of the buildings or on the roofs of the buildings
The products developed by the company are included in the category of combined production systems of electricity and heat, which is also known as “cogeneration”. The company’s products are electricity and heat generated from the micro-turbine activity and are used to heat buildings and thus increase the overall energy efficiency. The local production of electricity and heat in buildings is intended to solve a number of significant problems in the global electricity economy: on the one hand obsolescence of electricity infrastructure and the challenge of transporting renewable energy to city centers and on the other an increase in demand for electricity due to global warming and electric vehicles.
The main advantages of the company’s products are; Reducing electricity costs, reducing heating costs, durability from power outages from the electricity company, reducing greenhouse gas emissions, low installation costs of the system, ability to work in parallel with several types of fuels and high energy efficiency.