MassDevelopment has issued a $175,000 revolving bridge loan from the Emerging Technology Fund to Dynamo Micropower Corporation. Located in Somerville at Greentown Labs, Dynamo Micropower Corporation is a privately-held developer and manufacturer of fuel-flexible micro-turbine based power generation systems for the oil and gas industry.
“The Commonwealth thrives thanks to its innovation economy,” said Marty Jones, President and CEO of MassDevelopment. “We’re thrilled that the entrepreneurs at Dynamo Micropower can use this Emerging Technology Fund loan to help grow in Massachusetts and develop their micro-turbine technology to provide a more efficient option than those currently on the market.”
Dynamo has developed a scalable 15-75kW flexible-fuel, portable micro-turbine platform that meets the power challenges of oil and gas wells by reducing maintenance and fuel expenses. The turbine operates on associated petroleum gas, propane, or compressed natural gas in a single unit. Dynamo’s micro-turbine emissions control exceeds regulatory requirements, while its reliability translates to a lower cost of ownership.
“Managing cash needs is a big challenge for small companies like Dynamo,” said Jason Ethier, President and CEO of Dynamo Micropower. “The funding from MassDevelopment’s Emerging Technology Fund provides us with cash reserves that help reduce our need for costly equity capital.”
The bridge financing from the Emerging Technology Fund will support federal Small Business Innovation Research (SBIR) grant awards.
“MassDevelopment’s support of Dynamo Micropower is yet another example of leadership and investment in the Massachusetts start-up & clean energy ecosystem,” said Emily Reichert, CEO of Greentown Labs. “To date, MassDevelopment has been a supporter of Greentown companies with direct assistance—as with Dynamo—and also by supporting the start-up ecosystem through Greentown’s Manufacturing Initiative, which helps make it possible and desirable for more companies to stay and grow in Massachusetts.”
Greentown Labs, MassDevelopment, the Massachusetts Manufacturing Extension Partnership, and local businesses announced a partnership in November 2014 through which existing manufacturers help start-ups achieve their potential while the manufacturers benefit from exposure to the latest technological trends.
MassDevelopment, the state’s finance and development agency, works with businesses, nonprofits, financial institutions, and communities to stimulate economic growth across the Commonwealth. During FY2014, MassDevelopment financed or managed 314 projects generating investment of more than $2.9 billion in the Massachusetts economy. These projects are projected to create more than 6,300 jobs and build or rehabilitate more than 1,600 residential units.