Firefly Energy Inc., (www.fireflyenergy.com), the Peoria, Illinois-based company developing a portfolio of next-generation lead-acid battery technologies, today announced it completed a $15 million Series C equity round of financing led by a strategic group of Clean-Tech investors.
Leading this Series C round of funding were Quercus Trust, Khosla Ventures, and Infield Capital, investment firms focused primarily on clean technologies addressing environmental issues. Securing funding from these organizations underscores Firefly Energy’s status as a strategic player in innovative alternative energy technologies. These new investors join existing Firefly Energy investors Caterpillar, BAE Systems, Husqvarna, KB Partners, the Illinois Finance Authority, and the Tri-County Venture Capital Fund.
Firefly Energy will use its new capital to accelerate into volume production for first-generation products in commercial and military markets. The funding will also be used to support expanded product development, research and product awareness in new markets.
The notable first market for Firefly Energy’s technology is adapting its microcell foam-based battery for the long-haul trucking market. Typically, drivers using their sleeper cabs run their engines during rest periods in order to power accessories, such as air conditioners, television sets and microwave ovens. This practice wastes millions of gallons of costly diesel fuel while increasing the amount of emissions generated. New regulations recently enacted in California and other states severely limit the time a long-haul diesel truck can idle its engine. And as prices for diesel fuel have climbed from $3 per gallon to nearly $5 per gallon in just the last few months, there is a renewed search for cost-effective and reliable power alternatives that would enable truckers to turn off their engines. Firefly Energy’s new battery, Oasis™, will supply power to a truck’s sleeper cab while the engine is off, reducing fuel costs while lessening the environmental impact. Moreover, the battery’s construction features less lead than used in conventional lead-acid batteries.
Vinod Khosla, Partner of Khosla Ventures, believes Firefly Energy is concurrently pioneering both a significant technology and an innovative business model.
“Alternative energy is a key focus of Khosla Ventures, and as such we view the Firefly Energy investment as very strategic,” Khosla said. “The battery technology company has customers, patents, a highly focused business model and has been recognized worldwide for its technological innovations. We are pleased to have participated in this round.”
David Moll, Managing Director of Infield Capital, said: “Our target is the transportation industry and, specifically, innovations between the key and the wheel that are going to reduce the amount of energy we consume in transportation and the amount of pollution we generate when we consume. Firefly Energy fits very well into our strategy.”
Edward Williams, Chief Executive Officer of Firefly Energy, said that he believes Khosla, the clean-tech fund Infield Capital, and Quercus Trust are “at the vanguard of a growing number of investors who believe that concern for the environment and energy savings should be a significant part of their investment strategy. Across multiple industries – from truck drivers facing anti-idling regulations, to troop commanders who must silently power electronic systems with a robust battlefield vehicle battery, to advanced vehicle powertrains – the market is hungry for high performance environmentally-conscious next-generation energy storage solutions.”
Williams added: “The Series C equity financing round brings with it the investors and financial strength required to take Firefly Energy’s products into their commercialization and manufacturing production in Q4, 2008.”
Firefly Energy’s battery technology was recognized worldwide in 2007 with awards for Technology Innovation from the Wall Street Journal and the “R&D 100” from R&D Magazine.
About Firefly Energy (www.fireflyenergy.com):
Firefly Energy Inc. (“Firefly”) is a Peoria, Illinois-based battery technology company developing a portfolio of lead-acid battery technologies and products to enhance battery performance within major portions of the worldwide battery marketplace, now estimated at $30 billion in annual sales. The company’s first applied technology is a microcell foam-based battery technology, which can deliver a unique combination of high performance, extremely low weight and low cost, all within a battery which unleashes the full power potential of lead acid chemistry while overcoming its historical performance drawbacks. Firefly’s battery products and their patented microcell technology deliver to battery markets a level of performance achieved with advanced battery chemistries (Nickel Metal Hydride and Lithium) but at one-fifth the cost. Microcell foam battery products can be manufactured as well as recycled within the existing lead acid battery industry’s vast infrastructure. Firefly is backed by multi-billion dollar product companies such as Caterpillar (www.cat.com)(NYSE:CAT), BAE Systems (www.baesystems.com) (London Stock Exchange over the counter symbol:BAESY), and Husqvarna (www.husqvarna.com Other OTC:HSQVY.PK). Additional investors include Chicago-area Venture Capital firm KB Partners (www.kbpartners.com), Quercus Trust, Khosla Ventures (www.khoslaventures.com), Infield Capital, and the Illinois Finance Authority.
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Bob Dirkes, Tech Image Ltd.
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