Teesside-based EnviroTech business Nova Pangaea Technologies has raised £5.25 million in funding.
Nova Pangaea’s patented process converts woody and agricultural residues into high-value sustainable products that are used to manufacture sustainable aviation fuel and a range of biochemicals.
The process also produces Biochar which is crucial for carbon dioxide removal and soil enhancement.
The round led by Mercia Asset Management Plc, Par Equity and NPIF – Mercia Equity Finance, which is managed by Mercia and is part of the Northern Powerhouse Investment Fund (NPIF), with private investors also participating.
The company has received successive funding rounds from NPIF – Mercia Equity Finance and Par Equity since 2019, which have enabled it to build a demonstration plant at Wilton, Redcar and prove the capability of its process.
Last year it entered a partnership with British Airways and LanzaJet to launch Project Speedbird, a ground-breaking initiative to develop sustainable aviation fuel for commercial use in the UK.
Nova Pangaea is planning to build its first commercial plant in 2023 at its base at Wilton which will create a large number of local, high-quality jobs in the low-carbon sector.
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The aviation industry contributes to 2.5% of global CO2 emissions. Sustainable aviation fuel can reduce this by as much as 80% over the lifecycle compared to the traditional jet fuel it replaces.
“As industries and governments alike look to transition to cleaner energy, Nova Pangaea is part of the solution,” said Mark Payton, CEO of Mercia.
“This funding round will enable the business to invest in its growth. We are excited to be supporting the scaling of Nova Pangaea as it accelerates its commercialisation, signs new partnerships, and ramps up its production capabilities.”
Sarah Ellerby, CEO at Nova Pangaea Technologies, said: “We are delighted to welcome Mercia Asset Management Plc as a shareholder and to receive additional support from other investors at such an exciting time for the business.
“This bridge funding will assist with the delivery of our first commercial plant and the required resourcing plan to execute on the next phase of the business.”
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