CORPORATE FINANCE firm Key Capital has taken a 10 per cent stake in a Cork-based environmental business that makes a system for the safe destruction of waste water and sewage sludge and its conversion to electricity.
The investment is understood to value Super Critical Fluids International group (SCFI) at more than €20 million. The other shareholder in the business is entrepreneur John O'Regan, founder of the firm and its chief executive.
A chemist by training, Mr O'Regan sold his waste-water treatment and process manufacturing firm Envirotech to industrial holding group DCC in 2001. He became business development director of the environmental unit at DCC, but left the group in 2005 to pursue the current venture.
SCFI's AquaCritox system uses "super critical water oxidation" technology which destroys wet waste such as municipal and drinking water sludge without generating any harmful residues.
It can also be used for the treatment of food waste and other wet or hazardous materials.
The system converts waste byproducts to electricity or biomass, plant matter that can be converted into fuel.
Unlike other waste-to-energy technology, AquaCritox does not require the water element of the byproduct before its conversion into electricity.
Mr O'Regan declined to quantify the amount of electricity that the system can create, but said there was potential to generate 12 million megawatt hours per year if the system was deployed to the fullest extent in Europe.
Because the system does not leave harmful residues, SCFI aims to capitalise on the fact that sludge can no longer be dumped at sea and is often spread on land.
Key Capital director Ken Mintern, who is joining SCFI's board, said the company has adopted a business model akin to that of bread-maker Cuisine de France - SCFI will build, own and operate AquaCritox plants on-site for clients.
"SCFI plans to offer this environmentally-friendly, reliable, effective and economical waste-treatment technology on a global basis to customers across a variety of sectors and market," the firm said.
Mr O'Regan acquired the technology and patents last year in a deal with Swedish firm Super Critical Fluids, a division of Chematur Engineering.
"We believe that the AquaCritox technology is the leading technology for the treatment of wet wastes such as sewage sludge and food waste," he said.
