Content area
Full Text
'Ann Arbor-based STM Power Mc. was strapped for cash and on its deathbed three months ago, but a $30 million venture-capital investment has given the company new life.
The round of financing closed in January. Investors were San Francisco-based Nth Power L.L.C.; Quebec-based CDP Capital Technology ventures; Sari Diego-based Sempra Energy; Los Angeles-based Smart Technology Ventures; and San Bruno, Calif.-based VantagePoInt Venture Partners.
STM used the money to begin selling a commercial version of its Stirling engine that can convert unusual sources of fuel, including methane gases from landfills and manure, into electricity.
Unlike internal combustion engines, which rely on tiny explosions, Stirling engines drive pistons using hot and cool gases. They use fewer moving parts and can convert various types of fuel into electricity.
As STM ramps up production, the company expects to double its employee count this year from 40 to about 80, with most new hires coming in sales and marketing and production.
But STM's success is no sure bet, despite having a product that could help customers slash energy costs and become less reliant on the electricity grid.
The company faces a lackluster industrial engine market, leery potential customers and the challenge of gaining acceptance from potential distributors....