California, USA
- 8/31/2006
- Direct Drive Systems (DDS), a producer of high power, high-speed motors and generators, announced today that it has closed a $15.5 million Series A round of financing. As part of the financing, Dr. Even Bakke from BankInvest New Energy Solutions, a leading European energy venture fund, has joined its Board of Directors.
DDS is developing and producing a line of high-speed permanent magnet motors and generators above 1.5 MW. The Company’s proprietary technology enables its electric machines to operate at speeds matching the shaft speeds of turbomachinery such as gas turbines and compressors. The speeds of DDS’s machines are up to twelve times faster than conventional electric machines currently serving the market. This allows DDS to manufacture products that are smaller, more efficient and more economical in both capital and operating costs.
DDS’s machines will serve a wide range of industries and applications including oil and gas exploration and transmission, distributed generation, and marine and defense.
The Company will use the proceeds of this investment to take its first Frame 2 product (2 MW @ 22,000 rpm) to market, to accelerate the development of its Frame 8 product (4 MW – 10,000 MW @ 15,000 rpm), and to further develop its global sales channels.
Investors in the financing include BankInvest New Energy Solutions, Itochu Corporation, Southern California Gas Co. and Cooper Capital Partners.
“This group of investors brings to DDS not only strong financial backing but also strategic support to assist with our execution,” said Tom Smith, CEO of DDS. “Before leading NES, Even Bakke spent many years with ABB, where he had involvement with high speed electric machines and became intimately familiar with the market potential of these machines in the oil and gas industry.” Dr. Bakke said that “this investment represents a significant potential for BankInvest in the rapidly increasing international trade and transport of natural gas and LNG.”
George Funahashi of ITOCHU commented, "Our investment and partnership with DDS will give us a powerful platform to expand the depth and breadth of our industrial machinery business, and deliver further value to ITOCHU’s global trading partners."
“We’re also very pleased to have received the continued support of Cooper Capital Partners, which participated in the seed funding of Direct Drive Systems through their investment in our former parent Calnetix. Cooper Capital’s co-lead of our Series A round is a vote of confidence in DDS’s technology, value proposition, and team,” Smith added.
About BankInvest New Energy Solutions:
BankInvest Group is a leading independent Nordic asset manager of mutual funds, venture capital and discretionary mandates for institutional clients located in Copenhagen, Denmark. BankInvest manages in total more than USD 13bn. New Energy Solutions is focused on renewable energy, distributed energy and technologies for energy optimization and efficiency. To learn more go to www.biventure.com.
About ITOCHU Corporation:
ITOCHU Corporation is one of the largest and most well-respected trading companies in Japan. Founded in 1858, ITOCH, Corporation has grown to approximately $100 billion of global trading transactions every year. ITOCHU Corporation operates over 600 domestic and overseas subsidiaries involved in a wide array of industries, including aerospace, electronic machinery, media, textiles, food and chemicals, and has a presence in over 80 countries worldwide. To learn more go to http://www.itochu.co.jp/main/index_e.html.
About Southern California Gas:
Southern California Gas Co. (The Gas Company) is the nation's largest natural gas distribution utility, providing safe and reliable energy to 19.8 million consumers through 5.6 million meters. The company's service territory encompasses approximately 20,000 square miles in most of central and Southern California. The Gas Company strives to provide exceptional customer service to enhance the quality of life in the community. The Gas Company is a regulated subsidiary of Sempra Energy (NYSE: SRE). Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company. To learn more, go to www.socalgas.com.
About Cooper Capital Partners:
Cooper Capital Partners (CCP) is a privately sponsored investment fund based in Newport Beach, CA. CCP invests in selected public and private companies and is actively involved with a number of companies in the energy technology and financial services sectors. CCP has been the largest shareholder in DDS’s former parent, Calnetix, Inc, since 2000, and was closely involved in the creation of DDS.
About Direct Drive Systems:
DDS is an early stage company that manufactures high speed permanent magnet motors and generators above 1.5MW (2,000HP). DDS’ unmatched proprietary technology enables its electric machines to operate at speeds to match the shaft speeds of turbo-machines (centrifugal compressors, steam and gas turbines, etc.) that are up to 12 times faster than conventional electric machines on the market today. Furthermore, this unique technology allows DDS electric machines to be smaller, more reliable, more efficient and more economical in capital and operating costs. DDS has developed its first 2 MW (2,600 HP) 23,000 RPM product and has secured long term contracts with two leading global OEMs. Additionally, DDS plans to develop an 8MW (10,500 HP) 15,000 rpm in 2006. To learn more go to: www.DirectDriveSystems.net.
