The International Finance Corporation, the investment arm of the World Bank, has agreed to commit $5 million to round out a $21 million Series C financing for the ultracapacitor manufacturer Ioxus.
According to an email, the IFC was interested in applications for Ioxus’ technology in China’s hybrid bus market.
Part of the IFC’s mandate is to invest in companies that are developing technologies which address climate change, especially in emerging markets.
Ioxus manufactures ultracapacitor energy storage systems for use in transportation, industrial and energy applications. The company had already closed on $15 million in Series C financing in July 2013 in a round of funding led by the Westly Group, a California fund focused on the development of technologies to support sustainability and alternative energy production.
As the company grows, it is increasingly looking to China, already the largest market for hybrid buses, passenger rail, automobile sales and renewable wind power generation, in terms of demand. China is a fast developing country with more than four times the population of the United States.
To date, Ioxus has raised $46 million in funding. Participating in the Series C round alongside the IFC was Energy Technology Ventures, a joint venture fund launched by General Electric, ConocoPhillips, and NRG Energy.
Integrating the Ioxus ultracapacitor into hybrid buses could reduce their emissions by up to 72%, according to Ioxus chief executive Mark McGough.
The Oneonta, N.Y.-based company is already working with at least one undisclosed bus manufacturer in China and the company sees opportunities far beyond hybrid buses, McGough said. “95% of car companies use internal combustion engines, and we provide an inexpensive way to improve fuel efficiency,” he said.
According to McGough the company expects to be positive on an earnings before interest, taxation, depreciation and amortization, and could be profitable in 2015 on an annual basis.