New energy is behind Franklin-based technology company Enexor BioEnergy as the startup closes out its Series A round of funding.
BorgWarner, an American multinational automotive supplier, invested $10 million in Enexor BioEnergy, securing a minority stake in the local company.
Enexor CEO and President Lee Jestings said the publicly traded company’s investment was a key step in expanding and scaling Enexor’s Bio-CHP system, which converts organic and plastic waste into onsite clean energy sources.
Jestings said the company will be integrating multiple components from BorgWarner’s arsenal of technology into the Bio-CHP system and collaborating with its team of engineers to develop new machinery.
The investment is also significant from a supply chain perspective. Industries across the board are struggling to navigate supply chain issues caused by COVID-19, and Jestings’ company has not been immune.
“BorgWarner’s interest is extremely valuable from a supply chain angle. It provides more direct and less volatile access to supplies and suppliers,” Jestings said.
Additionally, the expansion aims to connect the start-up to BorgWarner’s global network, increasing the company’s exposure and introducing the technology to other parts of the world.
“There are countless applications for our technology, but several of the more obvious and urgent uses are in developing countries where BorgWarner has established relationships,” Jestings said.
Globally, more than two billion tons of waste is generated annually, more than half of that characterized as organic, according to the World Health Organization. Enexor BioEnergy officials think developing countries with poor waste management infrastructure could use the Bio-CHP system to curb disposal issues and address growing energy concerns.
Each system can reduce up to 1,000 metric tons of CO2 equivalent emissions annually by reducing methane emissions released from landfills, offsetting fossil fuel-based power generation and reducing waste disposal transportation emissions, according to the company.
BorgWarner executives have echoed Jesting’s enthusiasm about the recent investment.
“We have been impressed with the dedication and eco-friendly vision of the Enexor team and believe this investment is a natural extension of our comprehensive technology portfolio and actions we have already taken as part of our commitment to achieving carbon neutrality by 2035,” BorgWarner Vice President Joseph Fadool said.