Finding Funding: Plasco's Biggest Supporter

In an industry where finding funding for projects can feel a little like looking for a needle in a haystack, Candian energy company Plasco has an edge over the competition.

Plasco uses plasma gasification to convert MSW to energy. Plasma differs from the traditional partial oxidation process by using a plasma torch to heat the chamber to 5,000-10,000 degrees Fahrenheit. As a result, the MSW is vaporized rather than slowly combusted, as in typical partial-oxidation processes.

Plasma gasification is thought to be among the cleanest technologies on the market. The downside is that its expense eliminates it as an option for developers struggling to get financed. Luckily for Plasco, funds are one thing it doesn’t have to worry too much about, thanks in large part to financier George Soros.

Wealthy financer George Soros at the World
Economic Meeting in 2010. 

The Hungarian-American business magnate led a deal with private investors that gave Plasco a $140-million windfall in March 2011. This is the second big payday for Plasco, which totaled $110 million from investors the previous year.

“The performance of the company’s existing Ottawa plant and a strong pipeline of contract opportunities have allowed us to demonstrate to investors that our technology is proven and ready for commercial delivery,” Plasco CEO Rod Bryden said in a press release issued by the company in March.

Soros’ involvement undoubtedly gives Plasco more than just a comfortable financial backing. The support of such a well-known and savvy investor gives credibility in a market where companies are scrambling to prove why its technology is the best. The company already has one facility operating for commercial use in Ottawa and is currently working on a proposal to build a waste conversion facility in Salinas Valley, Calif.

Better BTU’s Take: We love the technology, but don’t love the cost. If it can become cost-effective as more plants get built, it could become a real contender in the large-system market. We’re also going to be keeping an eye on the announcement-to-close ratio: companies that announce a lot of projects but aren’t able to get them across the finish line only hurt the industry.