18th October 2022
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Nova Pangaea Technologies – the Teesside-based Clean Tech business – has raised £5.25m in a funding 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.
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 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.
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.
Mark Payton, Chief Executive Officer of Mercia, commented: “As industries and governments alike look to transition to cleaner energy, Nova Pangaea is part of the solution. 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.”
Alastair Moore, Investment Manager at Par Equity added: “Nova Pangaea is one of the most exciting Clean Tech companies in Europe and one with the potential to deliver decarbonisation. What the team have achieved in the past 12 months commercially is remarkable and showcases the quality of companies that are scaling in the North of the UK. We’re very pleased to be supporting the next stage of Nova Pangaea’s growth journey.”
Ken Cooper, Managing Director at British Business Bank, said: “Since its launch in 2017, NPIF’s impact on businesses has been wide-ranging, providing funding to launch new products, employ new staff, enter new markets and acquire new facilities. Nova Pangaea is a clear example of a business that is doing just that, whilst playing a key role in the North’s efforts to decarbonise.”
The Northern Powerhouse Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.
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