The invasion of Ukraine and the resulting energy crisis have an unexpected effect for Eocycle. The Quebec manufacturer is currently selling record quantities of small wind turbines in Europe to small businesses looking for solutions to the meteoric rise in electricity prices.
Posted at 6:00 a.m.
“The European market began to rise with the increase in electricity prices following the war in Ukraine,” explains Richard Legault, president and CEO of the company, which is headquartered in Anjou.
Europe is a target market for Eocycle, already established in Belgium and a partner of Belgian energy giant Engie. But sales have accelerated recently and its market has expanded. The company initially targeted the agricultural sector and large farms that want to produce their own renewable electricity. Its small wind turbines are now of interest to companies in the industrial sector.
“That’s new, and it’s very promising,” rejoices Richard Legault.
photo courtesy of eocycle
Eocycle offers two models of wind turbines, one 30 kW and the other 90 kW, which are quickly installed and whose height is three times less than that of the giant machines installed in large wind farms such as those in Quebec.
This is a solution that is increasingly attractive in Europe, where the roofs are already filled with solar panels and where there is a lack of space to deploy solar parks.
With the current increase in the price of electricity, the return on investment has gone from 8 to 4 years for equipment with a lifespan of 30 years.
Richard Legault, President and CEO of Eocycle
Eocycle now has its eye on the German market, the largest in Europe, where the opportunities are immense. “There is insecurity, says the founder of Eocycle. People pounce on what is available. »
Canada has promised to help Europe reduce its dependence on Russian gas, but the solutions envisaged, such as the construction of a transport infrastructure for liquid natural gas, will take years to put in place, explains Richard Legault. “The day seems to have arrived for a solution like ours,” he says.
Europe currently generates 75% of Eocycle’s revenues, with the remainder coming from North America, primarily the United States. Canada could become interesting in a few years, according to its president, in particular to supply electricity to the communities of the Far North. Eocycle wind turbines are installed without a crane and are resistant to extreme cold.
“One bite at a time”
Eocycle is a private company that counts Investissement Québec and Cycle Capital among its shareholders. It employs about twenty people, half of them in Quebec. A new round of funding is underway to fuel its growth. The company would like to collect 15 million US, particularly on the American and European markets, to continue its journey. Eocycle is aiming for revenues of “a few hundred million within a few years”.
A possible IPO is not excluded, but not immediately. “We take it one bite at a time,” says its president.
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- Between 25 and 35 m in height
- Eocycle wind turbines are three times lower than the wind turbines of wind farms such as those in Quebec.
Eocycle