High-Efficiency Wind Turbine Generator Manufacturer Danotek Motion Technologies Powering the Wind With $14.5 Million From CMEA Ventures, StatoilHydro and GE

Bolstering its contribution of high-efficiency and cost-saving generators to the $37 billion wind industry, Danotek Motion Technologies has raised $14.5 million from CMEA Ventures, StatoilHydro unit StatoilHydro Venture and GE unit GE Energy Financial Services. Danotek’s generators can spur the wind equipment market by increasing wind turbines’ efficiency, while radically reducing their maintenance and operating costs.

“The capital infusion from top-tier, long-term investors will allow us to expand manufacturing and support our entry into the wind turbine original equipment manufacturers’ market with generators capable of producing up to three megawatts. We will also scale up generator development for larger direct drives and offshore units,” Dan Gizaw, CEO of Danotek, based in Ann Arbor, Mich., said of the initial $7.25 million funding round, which CMEA Ventures and StatoilHydro Venture led and which closed Sept. 23. The balance of the funds are to be provided in a subsequent round. Additional details of the funding were not disclosed.

Danotek’s patent-pending variable speed Permanent Magnet Generators save more than $1 million per turbine for wind farm developers and wind turbine original equipment manufacturers over the life of a turbine. Their unique design offers high performance at low wind speed. They are significantly more efficient than conventional generators (with efficiency rates topping 98 percent), and they incur lower operating costs. They are half the weight of conventional generators and have improved reliability, because they contain no “wear-and-tear” parts. Danotek’s generators and electronics power converters have elicited interest from large-scale wind turbine manufacturers globally.

“CMEA’s energy and materials group reviewed 1,500 potential green energy deals in the past 12 months and only invested in four, including Danotek,” said James Kim, senior partner, CMEA Ventures. “In this space, it’s not enough to have great technology. You also need a team that knows how to scale its business and forge partnerships with industry incumbents. Danotek’s executive team has accumulated the deep energy industry experience needed to build a successful business on its breakthrough technology.”

“With its strong technical experience built during decades of research and development of permanent magnet generators and control electronics, Danotek is well positioned to take advantage of the technological, regulatory, and long-term economic and societal factors increasing the demand for power generated by renewable sources,” said Kevin Skillern, managing director and leader of venture capital at GE Energy Financial Services. GE has invested more than $150 million in the last two years in early- and growth-stage energy- and water-related technology companies.

“At StatoilHydro Venture, we are looking for companies with unique technology that helps increase the efficiency and reliability of large-scale wind turbines. Danotek is a such company, and we believe that its high-efficiency generators will make a huge impact on the onshore and offshore wind industry,” said Ståle Myhre, investment director, StatoilHydro Venture.