RegenEAU this week announced the closing of an oversubscribed funding round.
The Lévis-based firm garnered more than $3 million to scale the deployment of its innovative domestic hot water production system that harnesses residual heat from building wastewater.
Launched in 2023, RegenEAU’s modular system combines patented solid-liquid separation technology that recovers heat from both greywater and blackwater with an efficient hot water production unit has already proven effective in both new construction and retrofit projects.
The round of investment into RegenEAU was co-led by Fondaction and the Cycle H2O Fund and included participation from the Centre for Excellence in Energy Efficiency, Groupe Marcel Charest et Fils, and Desjardins through its Startup in Residence accelerator program.
“This funding round marks a major milestone in accelerating the deployment of our systems,” stated RegenEAU chief executive officer David Pineault. “We are truly grateful to our investors for their trust and valuable support.”
This capital injection will enable RegenEAU to scale up production, grow its team, support commercialization efforts, and obtain energy efficiency certifications for its system, according to Pineault.
Domestic hot water production is typically one of the largest energy expenses in multi-unit residential buildings, Pineault points out.
Yet, in Quebec, a majority of the energy used to heat domestic water is squandered, laments Andrée-Lise Méthot, founder of Cycle Capital.
“The thermal energy in wastewater is an abundant, free, and, until now, largely untapped resource,” says Méthot. “By recovering it, we can significantly reduce greenhouse gas emissions from the real estate sector, which alone accounts for 13% of Canada’s GHG emissions in Canada, while also lowering energy bills for buildings.”
Beyond innovative tech, RegenEAU claims a resilient supply chain, which the upstart considers a competitive advantage.
Roughly 60% of the product’s components are standard parts sourced from multiple suppliers, with many based in Canada. For proprietary components, RegenEAU says it relies on manufacturers located within 100 kilometres of its assembly plant in Quebec.
Created by the CSN, Fondaction is an investment fund for individuals and businesses committed to the positive transformation of Quebec’s economy, making it more just, inclusive, green, and high-performing.
Cycle H2O, part of the Cycle Capital fund family, is an early-stage venture capital fund dedicated to water technology startups in Quebec.
Desjardins Group is the largest financial cooperative in North America and the sixth largest in the world. The firm’s Startup in Residence is a program that supports and invests in technology companies generating positive socio-economic impacts in communities.
RegenEAU was founded in 2018.