Industrial energy developer Kanin Energy announced that it has raised up to $100 million in new equity financing, with the proceeds from the financing aimed at accelerating its deployment of projects turning waste heat into electricity for industrial facilities across North America.
The industrial sector generates enormous amounts of waste heat as a byproduct of normal operations that is continuously vented to the atmosphere at thousands of facilities across North America. According to Kanin, up to 58% of energy consumed in industrial processes is lost as waste heat, while capturing this waste heat and creating power requires no additional fuel and produces no additional emissions.
Founded in 2020, Calgary, Canada-based Kanin Energy develops clean energy projects aimed at helping heavy industry decarbonize, with a focus on converting industrial waste heat into power. The company works across sectors including natural gas, cement, refineries, steel and other metals, providing services spanning project development, engineering, construction, financing, operations and maintenance, to convert waste heat into baseload electricity delivered directly to the host facility or a local off-taker at below-market rates.
The company said that the new capital will enable it to scale its Energy-as-a-Service business model, under which Kanin finances, develops, constructs, and operates WHP and other heavy industry projects for industrial operators, while reducing their cost of power, improving power reliability, and reducing emissions.
Janice Tran, CEO of Kanin, added:
“At a time when power costs continue to rise, these solutions are an important tool for our industrial customers to manage their costs, operations and emissions.”
The new funding round was led by S2G Investments with a commitment of up to $50 million, with participation from Canada Growth Fund (CGF), which committed up to $50 million.
Marisa Sweeney, Principal at S2G, said:
“Rising power prices, grid congestion, and reliability constraints are pushing industrial companies to rethink how they source power. Waste heat has largely been an underused solution, but as these constraints persist, there’s a clear and growing incentive to capture it and put it to productive use. We view this as a category with real staying power, and believe that Kanin’s team has the experience and discipline to meet this rising demand at scale.”
