EnerTech Industry Review “Thought Leadership in Energy Technology”
We are pleased to bring you our Seventh Edition of the
EnerTech Industry Review. We have continued to be busy
over the past quarter with our existing funds and with
reviewing new deals for EnerTech Capital Partners IV (ECP
IV). ECP IV has invested $54.6 million into 11 companies to
date with a total committed capital including reserves of $82.2
million.
The major investment highlights since our last report include:
NanoSteel announced delivery of its first advanced high-
strength steel (AHSS) to General Motors for initial testing.
Designed to provide automakers with a new standard in
material performance, the sheet steel is poised to accelerate
vehicle light weighting initiatives focused on affordably meeting
rising global fuel-economy regulations. Production of the
material, targeted to the $100 billion-plus automotive steel
market, is the result of a multi-year joint development
program between NanoSteel and AK Steel Corporation - an
industry-leading innovator in steel product development. For
more on this story, please visit the following link.
EnerTech Update
Wally Hunter
Managing Director
EnerTech Capital
Vol 7 ● July 2016
ECP II
2
There are four major investments remaining in ECP III, which
include:
Enbala Power Networks http://www.enbala.com/
Tangent Energy Solutions http://www.tangentenergy.com/
FilterBoxx http://filterboxx.com/
PCN http://www.pcntechnology.com/
Each of these companies continues to move forward with their
business models and there has been positive news recently on
the customer front for many of them.
Follow-on investments totaling $3.0 million in five
companies (GeoDigital, Space-Time Insight, Terralux,
Western Oilfield Equipment, and Blue Pillar)
Power Survey International http://powersurvey.com/
company/news/
On the heels of closing our $3.6 million investment last
quarter in Power Survey Inc., as planned we have hired a new
CEO and CFO for the company.
The new CEO, Mario Barbaresso, has more than 30 years
experience in the power industry; 13 of which were as CEO of
Benning Power Electronics. The new CFO, Lenny Ryer, has
been CFO of both public and private entities in various
technology sectors for the past 16 years and has been active in
financing transactions within the capital markets for over 25
years.
We view our investment in Power Survey as a platform
investment in the Grid Edge space, with an initial focus on
Power Quality. The company has entered into formal Letters
of Intent for acquisitions of two companies that fit into the
platform strategy. We expect additional draw down of
reserves for this company in conjunction with acquisitions
over the next few months.
EnerTech Industry Review
59.2%
40.8%
Canada US
ECP III
ECP IV
ECP IV Portfolio Mix
Our current portfolio mix in ECP IV is:
Geography by % $ Invested Sector by % $ Invested
58.23%16.06%
25.70%
Power Technology O&G Technology Building/Process Efficiency
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EnerTech Spring Advisory Board Meeting:
The EnerTech Advisory Board Meeting was held on May 26th
2016 in Toronto. We had over 70 in attendance and the
meeting included a number of our major LPs, Portfolio
Company CEOs, Strategic Advisory board members and
Strategic Partners. Keynote speakers included Advisory Board
members Mike Babcock (Coach of Toronto Maple Leafs) and
Governor George Pataki (Former Governor of New York
and Former Republican Presidential Candidate).
EnerTech Team updates:
We were very pleased to announce the
addition of Ed Jackson to our Advisory
Board. Ed was Managing Director & Co-
Head Investment Funds, RBC Capital
Markets. Ed is a well-respected industry
leader with 30 years’ experience
providing senior coverage to key RBC
clients in Investment Banking, National
Accounts and Real Estate Lending.
Ed brings significant contacts in the institutional investment
world and will be helpful to our firm as we expand our
investor base for future funds.
ECP IV Opportunity Landscape: From the Well Head to the Wall Socket
We continue to see strong deal flow from Canada and the US
with over 550 deals reviewed in 2015 and 250 so far in 2016.
We are currently closely reviewing two to three new deals
and would expect to close another new deal in late Q3 or
early Q4 2016.
Our investment landscape in ECP IV continues to be broad in
the Energy Technology sector and we are seeking innovative
technologies from “The Well Head to the Wall Socket”. We
are seeing the following types of interesting opportunities in
our investment landscape:
Behind the Meter technologies, including device control;
Building automation, lighting and energy efficiency
technology;
Digital Oilfield and Oil & Gas technologies focused on
reducing the cost of oil production
In the current fund we continue to focus on revenue
producing companies or companies that are embarking on
growth rounds of financing with proven technologies and
customer base.
EnerTech Industry Review
EnerTech News
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EnerTech Industry Review
Over the past two years, Canada has experienced significant
momentum towards placing a price on carbon. Ontario has set very strict GHG emission reduction limits and
introduced a cap-and-trade system which will “go live” in
2017. In 2018, Ontario will link with the joint carbon market in
Quebec and California. Quebec has set tougher GHG
reduction limits to keep pace with Ontario. Most recently the
Alberta government introduced an economy-wide carbon tax
set to begin in 2017, and the new Manitoba government
committed to putting a price on carbon in its 2016 Speech
from the Throne. Perhaps the most striking shift has been at the federal level.
Prime Minister Trudeau has declared unambiguous support for
putting a price on carbon. At a First Minister’s meeting in
Vancouver, he and Canada’s Premier agreed to work toward a
national climate change plan that includes an agreement in
principle for a carbon-pricing mechanism, and struck a working
to further study the issue. This rare confluence of political events has made it likely that
carbon pricing will remain in place in Canada for years to
come. Provinces, given their early actions and legislative
responsibilities, are expected to continue their leadership role.
The federal government’s primary focus is likely to be reducing
emissions from its own building stock, funding green
technology research, development and commercialization, and
pressing the issue on the international scene. It is important to
note however, that in recent weeks reports have suggested
that Finance Minister Bill Morneau has been pushing for a
minimum national price to complement provincial carbon
pricing plans. We expect to see more developments on this
file federally over the next six months. With some form of carbon pricing in place in Canada’s largest
provinces and support at the federal level, there will be
significant implications for market participants as well as
consumers. In Ontario, the nation’s largest economy, significant cap-and-
trade auction revenues and aggressive GHG reduction targets
will generate new opportunities for potential green technology
investment. The government’s recently-released Climate
Change Action Plan details over 75 actions. One commitment
is to establish a green bank, based on the Efficiency Vermont
and the New York Green Bank, to deploy and finance readily
available low-carbon technologies. The green bank will also
design and deliver programs and services to reduce GHGs and
will help large and small emitters improve energy productivity
and modernize. Understanding exactly how this bank will work
and how business could interact with it may well determine
the business’s ability to access such programs and funds. In the near term, the increased cost of carbon from the
government’s plan is not expected to be high enough to have a
significant impact on consumption behavior (government
predicts 4.3 cents per litre for gasoline). Therefore, the
effectiveness of these action items, on a dollar per tonne basis,
will be essential if the government is to have any hope of
meeting its targets. In order to fund these items, the
government will be dependent on revenues generated through
the cap-and-trade auction. However, the last joint California-
Quebec auction revenues fell far short of expectations with
buyers purchasing just 2% of the carbon credits. British Columbia, as mentioned, imposes a tax on carbon
emissions from fossil fuels, but has come under fire recently
for reports that its greenhouse gas emissions could rise by
39% above 2014 levels by 2030. Critics have encouraged the
Clark government to raise the current levy of $30/tonne on
carbon emissions (equaling about 8 cents per litre of gasoline)
which has been frozen for the past four years. The province is
expected to announce a new climate-change plan soon,
including initiatives to reduce carbon emissions.
The Developing Carbon Markets in Canada
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EnerTech Industry Review
Source: Redline Communications
Alberta’s carbon tax is set to begin on January 1, 2017. The
levy will apply to purchases of fossil fuels that produce
greenhouse-gas emissions when burned, at a rate of $20 per
tonne of emitted carbon dioxide, with the rate due to rise to
$30/tonne in 2018. Over the next 5 years, the levy is
expected to raise $9.6 billion, with $3.4 billion pledged for
large scale renewable energy, bioenergy and technology, $2.2
billion for green infrastructure like transit, $2.3 billion for
carbon rebates to help low- and middle-income families, and
$195 million to assist coal communities, Indigenous
communities and others with adjustment, among other things.
Some items to follow closely over the next year:
The design of Ontario’s cap-and-trade system for the
second compliance period, particularly for large industrial
emitters, and more details on spending items from the
Climate Change Action Plan
The price yielded by the joint Quebec-California emissions
credit market – Ontario not expected to join until 2018
Further details on BC’s climate change plan
How the Alberta government begins to spend its carbon
tax revenues, particularly in the area of green technology
Ongoing discussions between the provincial and federal
governments about a national carbon price, including the
results of their joint “working group” later this year
Aaron Dobbin (Vice-President) and Matt Thompson (Manager) are
part of StrategyCorp; a firm specializing in providing strategic
advisory services to private and public sector clients operating in
complex, highly regulated and highly scrutinized contexts. The
company’s unique service capabilities allow it to analyze every client
challenge through multiple lenses - business, political and
communications - enabling us to create conditions for success.
6
EnerTech Industry Review
The National Optics Institute:
Canada’s Leading Developer of Industrial
Optics and Photonics Solutions
In June, 2016 EnerTech Capital announced its Strategic
Partnership with The National Optics Institute (“INO”). INO
is Canada's leading developer of industrial optics and photonics
solutions and the strategic partnership between EnerTech and
INO will allow the two groups to share knowledge and
explore new commercialization strategies for technologies in
the energy space.
INO is a pioneer in optics/photonics research for industrial
development purposes. Today, INO is Canada’s leading center
for industrial research and commercialization and stands as a
true leader in its field. Its many technological breakthroughs
and innovative processes and applications combining optics
and photonics have cemented its reputation both domestically
and abroad. Optics and photonics technologies provide
important strategic benefits to the Oil & Gas, electrical, solar,
and green energy industries by significantly enhancing their
capacity to boost productivity, deal with environmental
constraints, and optimize control measures.
INO creates innovative solutions for the energy industry,
particularly online real-time chemical and physical measuring
systems for improved process control. INO technologies can
also be employed to optimize the use of solar and artificial
light, pipeline monitoring and leak detection, 3D infrastructure
mapping, non-destructive testing and monitoring & control
applications in the Internet of Things space (“IoT”).
Moreover, INO specializes in the development and use of fiber
sensors for a wide variety of applications, such as the
detection of ions in solution, detection of medium voltage in
distribution networks, low-intensity acceleration and
movement detection, and radiation detection. INO also has a
very successful history in spinning out new companies in the
optics space over the years and the partnership with EnerTech
will further help expand spin-out opportunities.
The following are the four Technology Pillars of current focus:
3D and Other Imaging Systems
Lasers
LiDARs
Lighting
Sensors
Specialized Services (Environmental Testing,
Optical Design, etc.)
Specialty Optical Fibers
Spectral Imaging Systems
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EnerTech Industry Review
Q2 2016 EnerTech Portfolio Company News If you are viewing a digital version, please click on the news item for more information.
May 17, 2016 Mark Williams Joins Blue Pillar as Vice
President of Sales
April 21, 2016 Blue Pillar One of Twenty Companies to
Receive Greentech Media’s Prestigious
Grid Edge Award
March 17, 2016 Blue Pillar Sponsors New Healthcare
Leadership Initiative: Powered for
May 20, 2016 Encycle Releases HVAC Visibility
Services
May 16, 2016 Encycle Showcased as Innovator in
Biomimicry
ECP IV
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EnerTech Industry Review
March 31,
2016
GeoDigital CEO Chris Warrington
featured in Chief Executive Magazine
article
June 14, 2016 N-Dimension Appoints Utility Industry
Veteran Mark Munday to its Board of
Directors
June 9, 2016 N-Dimension Selected by PUC Services
to Improve Utility’s Cybersecurity
June 7, 2016 N-Dimension Welcomes Roger
Thornton, Chief Technical Officer of
AlienVault, to its Board of Directors
May 11, 2016 N-Dimension Cybersecurity Intelligence
Improves IT Efficiencies at La Plata
April 25,
2016
N-Dimension Delivers Unmatched
Cyber Risk Visibility at Columbia Power
and Water Systems
April 13, 2016 N-Dimension Selected By Smart Grid
News as a Company To Watch In 2016
May, 2016 Terralux Partners with ENERGY STAR to
Develop Certification for LED Retrofit
April 1, 2016 TERRALUX lighting and IoT – Internet of
Things
May 23, 2016 Space-Time Insight Launches Singapore
Subsidiary For Asia Pacific Innovation
April 11, 2016 Space-Time Insight Applies Data Analytics
To Keep Workers Safe
March 29, 2016 LiveData Utilities And Space-Time Insight
Increase Electric Reliability Through
Analytics And Real-Time Device Control
April 24,
2016
Mario Barbaresso Named President,
CEO of Power Survey International
Mark Munday
New N-Dimension
Board Member
Mario Barbaresso
New CEO of
Power Survey
Roger Thornton
New N-Dimension
Board Member
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EnerTech Industry Review
ECP III ECP II
June 13, 2016 NanoSteel Joins Industry’s Best at Steel
Success Strategies
June 06, 2016 Automotive Manufacturing Looks at
NanoSteel Doing More with Less
May 20, 2016 NanoSteel and AK Steel Win Platts
Breakthrough Solution of the Year
Award
April 21, 2016 NanoSteel Delivers Advanced
Automotive Steel to General Motors
April 19, 2016 Michael Ratliff Joins Enbala Power
Networks as Senior Product Executive
May 17, 2016 FilterBoxx Announces Award of Camp
Project in Texas
May 9, 2016 Fort McMurray Wildfire Relief Efforts
May 9, 2016 FilterBoxx Announces Award of Industrial
Project in Mexico
April 4, 2016 FilterBoxx Announces Award of Large
Operations & Maintenance Contract
March 15, 2016 FilterBoxx Announces Sanitary
Wastewater Treatment Plant for Mining
Installation
NanoSteel Advanced High Strength Sheet Steel
The Platts Global Metals Award recognizes the product’s groundbreaking
properties, which offer the combination of both high strength (1200 MPa)
and high formability (50% elongation).
Michael Ratliff
Enbala Senior
Product Executive
The FilterBoxx equipment endured some of the harshest climates on top of
a frigid glacier. During the winter, it was completely submerged in heavy
cold snow and it operated consistently.
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EnerTech Industry Review
The EnerTech Advisory Board Meeting was held in Toronto on May 26 2016. The complete event agenda is below, followed
by photos from the event. The EnerTech Forum & LP Meeting will again be held in Miami from November 30 to December
1st, 2016.
2016 EnerTech Advisory Board Meeting
Agenda
Guest Speakers
Mike Babcock
Coach of the
Toronto Maple
Leafs
Governor George
Pataki
Former New York
Governor and republican
Presidential Candidate
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EnerTech Industry Review
Venture Capital Update – Q1 and Q2 2016 – VC Investments in Canada A total of $869 million was deployed in 152 financing rounds by Canadian VCs in Q1 2016 according to final data
released by Thomson Reuters. Led by deal making in information technology sectors, dollars invested in this period rose 61%
from Q1 2015, reflecting the best quarterly result in the Canadian market in more than 14 years.
Select deals from Q1 and Q2 2016 are outlined below.
Source: Thomson Reuters
Venture Capital Investment in Canada
Company Name Description Major Investors Investment
Amount (CAD)
Detects, remediates and communicates sophis-
ticated cyber threats in real-time
Georgian Partners, Edison
Ventures, Cisco Investments,
Information Venture Part-
ners, Northleaf, Teralys
$19.5 million
A developer of mobile video collaboration so-
lutions for energy, field service, manufacturing,
and public sector industries.
BDC, Emerald
Technology $8.2 million
A developer of a smart logistics platform that
optimizes routes for last-mile delivery fleets,
saving businesses up to 40% on time and fuel.
Pallasite Ventures, Firestarter
Fund $1.2 million
Select Canadian VC Investments from Q1 and Q2 2016
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EnerTech Industry Review
Venture Capital Update – Q1 and Q2 2016 – VC Investments in the US
The venture capital ecosystem deployed $12.1 billion into 969 deals across the United States in 2016. Total venture dollars
deployed to startup companies for the quarter remained flat and total deal count was down 5%, compared with the fourth
quarter when $12.0 billion was invested in 1,021 deals. Compared with Q1 2015, dollars and deals are both down 11 %. This
is the ninth consecutive quarter of more than $10 billion in venture capital invested in a single quarter. Select deals from Q1
and Q2 2016 are listed below and on the next page.
Total US Equity Investments into Venture-backed Companies
(in billions USD)
Source: PwC and the
NVCA based on data
provided by Thomson
Reuters
Company Name Description Major Investors Investment
Amount (USD)
A developer of smart energy-efficient homes
through the monitoring and controlling of
devices.
EDBI, Singapore Technologies
Telemedia, The Westly Group,
E.ON Ventures
$45 million
Full-service provider of intelligent energy stor-
age systems comprising batteries, power elec-
tronics and multiple energy inputs controlled
by software running in the cloud.
AGL Energy, SBCVC, Siemens
Venture Capital, Total Energy
Ventures, Australia Renewable
Energy Agency
$36.5 million
A developer of big data discovery and leverage
software for multiple industries.
Per-Olof Soderberg, GE Pension
Trust, Tenth Avenue Holdings,
Oak Investment Partners
$31 million
Developer of hardware, software and cloud
solutions for commercial Unmanned Aerial
Vehicles.
Andreessen Horowitz, KPCB,
John Chambers, Next World
Capital $30 million
Select US VC Investments from Q1 2016
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EnerTech Industry Review
Select US VC Investments from Q2 2016
Venture Capital Update – Q1 and Q2 2016 – VC Investments in the US
Company Name Description Major Investors
Investment
Amount
(USD)
Developer of a mass-market urban
transportation solution that is flexible,
cost-effective, and environmentally-
friendly
Pitango Venture Capital, Poalim Capi-
tal Markets, C4 Ventures, Ervington
Investments, Hearst Ventures,
83North
$100 million
Provider of hardware, process, and ma-
terials solutions to streamline
production of OLEDs
BOE, Cybernaut Investment (China),
GP Capital, Redview Capital, TCL
Capital, Samsung Ventures, Sigma
Partners, Spark Capital, Madrone
Capital Partners, DBL Investors, New
Science Ventures, Veeco Instruments
$88 million
Developer of vacuum tube transporta-
tion technology based off of the concept
proposed in 2013 by Elon Musk
Sherpa Capital, 137 Ventures, 8VC,
GE Ventures, Caspian CV Partners,
Justin Mateen, Khosla Ventures,
NextGen Venture Partners, SNCF,
Western Technology Investment,
ZhenFund
$80 million
Provider of electric vehicle (EV) charging
solutions
Linse Capital, Braemar Energy Ven-
tures, Constellation Energy $50 million
Developer of CRISPR cellular engineer-
ing and analysis technology with applica-
tions in research, industrial biotech,
agricultural, and therapeutics
Anterra Capital, Heritage Group,
Maverick Capital, Pontifax AgTech,
Novartis, Mission Bay Capital, 5 Prime
Ventures, F-Prime Capital Partners
$30 million
Provider of an API to search and
discover hadoop data
Saudi Aramco Energy Ventures, Shell
Technology Ventures, GE Ventures,
Chevron Technology Ventures, Intel
Capital, Frost Data Capital
$26 million
Enabling solid-state ultraviolet
disinfection of water, air and surfaces
Tsing Capital, IPV Capital, DCM Ven-
tures, Capricorn Investment Group,
Applied Ventures, Augment Ventures,
Tolero Ventures, New Ground
Ventures
$26 million
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EnerTech Industry Review
The EnerTech Team
A Seasoned, Diversified, and Experienced Group
Wally Hunter
Managing Director
Lyndsy MacArthur
Executive Assistant
Angelica Mengana
Analyst
Scott Ungerer
Managing Director
Bill Kingsley
Managing Director
Dean Sciorillo
Managing Director
Donna Smith
Executive Assistant
Gian Vergnetti
Associate
Jarett Carson
Managing Director
Dr. Dominic Geraghty
Executive in Residence
Philadelphia
Toronto
San Francisco Boston
Robert M. Chiste
Executive in Residence
Houston
Colleen Pale
Director of Finance
and Administration
Montreal
Anne-Marie Bourgeois
Vice President
Investments
West Palm Beach
Calgary
Chris Buckman
Vice President
Jessica Ungerer
Social Media Intern
Hoon Chung,
Executive in Residence
Orange County
Toronto Toronto
Philadelphia Philadelphia
Philadelphia Philadelphia Philadelphia
Calgary
Eric Schmadtke
Special Advisor
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EnerTech Industry Review
The EnerTech Strategic Advisory Board
Our Network is an Extended Family of Deal Sourcing, Due Diligence and Exits
The EnerTech Strategic Advisory Board is made up of a diverse and experienced group of
visionaries, industry leaders and experts in various disciplines. They bring unparalleled expertise and
a wide network in the areas of energy services and policy, information technology, Oil & Gas, and
clean energy innovation. We are proud and grateful to have them as members of our Advisory
Board.
Independent Board Members
Dr. Bill Madia
SLAC National Accelerator Laboratory,
Stanford University
Dr. Jim de Wilde
President, JdW Strategic Ventures
Michael Harris
Former Premier of Ontario
Sharon Allan
President & CEO, SGIP
Mike Babcock
Coach of the Toronto Maple Leafs
Ed Jackson
Previously Managing Director & Co-
Head Investment Funds, RBC Capital
Markets
16
EnerTech Industry Review
Independent Board Members Continued
J. Scott Magrane
Managing Director, Coady Diemar
Partners
David Milenthal
CEO, The Milenthal Group
Governor George Pataki
Former Governor of New York
Vicky Sharpe
Founding President of SDTC
Rob Soni
Independent Board Member
Gordon Pridham
Principal, Edgewater Capital and
Newalta Board Member
Etienne Veilleux
Founder, Distech Controls
The EnerTech Strategic Advisory Board
Thought Leadership in Energy Technology
17
EnerTech Industry Review
Rebecca Kauffman
President and COO, Southern Ute
Alternative Energy
Eric Legault
Managing Partner, Teralys Capital
John Morris
Sr. Vice President of Field
Operations Waste Management
Nils Voermann - Global
Managing Director -
Technologies, Hatch
Marty Toomajian
President of Energy, Health &
Environment, Battelle
Victor Scutaru
Director, Fund Investments, BDC
Venture Capital
Scott Pinizzotto
Senior Director, ENGIE New
Ventures
Rebecca Giffen
Director of Investments, Alberta
Enterprise Corporation
Cam MacNaughton
Executive Director
Commercial Development,
Newalta Corporation
Alex Beliaev
Investment Manager, EDC
LP and Strategic Partner Board Members
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EnerTech Industry Review
The EnerTech Ecosystem
Strategic Partners
Limited Partners
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EnerTech Industry Review
September 22-23, 2016 – Banff, AB
Banff Venture Forum
September 24-28, 2016 – New Orleans, LA Weftec - The Water Environment Federation’s Annu-
al Technical Exhibition and Conference
September 27-28, 2016 – New York, NY
New York Rev Future 2016
October 25-26 – San Diego, CA
U.S. Solar Market Insight
October 31- November 2, 2016 – Atlanta, GA
Utility Analytics Week
December 7-8, 2016
U.S. Energy Storage Summit
December 13-15 6-8, 2016 – Orlando, FL
POWER-GEN International
January 23-25, 2017 – San Francisco, CA
Cleantech 100 Conference
Upcoming
Industry Events
www.EnerTechCapital.com
Philadelphia ● Toronto ● Montreal ● San Francisco ● Calgary
For questions or comments, please contact:
Wally Hunter
Managing Director, EnerTech Capital
tel #416-363-8563
Contact: Lyndsy MacArthur: 416-515-2759 or
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