The Energy Mentor Network’s second graduate, Stone Mountain Technologies (SMTI), has been busy since its December 2018 graduation. Headquartered in Johnson City, SMTI is a leading developer of cost-effective, next-generation heating technologies that lead to lower energy costs, higher comfort and lower CO2 emissions.
In the past few months, SMTI has closed its seed-round with nearly $3 million from two strategic investors, kicked off its Series A Round, launched several prototypes and sought market expansion to Europe. Later this month, the company will release details for a new grant that will demonstrate an exciting new feature for the base gas heat pump product.
“It will provide heating, cooling, and water heating for homes at the lowest carbon footprint that we believe anybody has ever done. It is a huge deal for us to be able to demonstrate that technology over the next year or so,” remarked SMTI President Michael Garrabrant. “The buzz in the industry and the market is the highest it’s ever been and continues to grow as everybody sees that we are getting close to production and commercial launch.”
With product development, SMTI is starting to “seeing the light at the end of the tunnel.” Garrabrant spoke about implementing field test units in Los Angeles on two full-service restaurants, another in Chicago for a multi-unit apartment building, two in Wisconsin for residential spaces and in Montreal for testing at National Resources Canada.
“We may be building 200 more prototypes over the next twelve months, which will finish out product development and get us ready to launch commercial products,” outlined Garrabrant.
“Our focus is on one thing: getting into production and transitioning to a manufacturing company from a product development company,” he continued. “Once we launch, we’ll start out with 50 to 100 employees. But if we hit our targets over the next 10 years, there could be as many as 1,000 or 1,500 employees.”
SMTI is also interested in introducing its technology to the European market. After introducing its technology and company to major European heating and equipment manufacturers at a “dog and pony show” in Paris, SMTI continued the conversations at ISH, the world’s leading trade fair focusing on the responsible management of water and energy in buildings, in Frankfurt, Germany, this past March.
“We’ve got a lot of things going in North America, but we’re trying to get our foot in the door in Europe,” explained Garrabrant. “It’s been pretty successful so far since we graduated.”
While enrolled in the Energy Mentor Network program, SMTI closed a multi-million dollar investment with a strategic investor and was awarded a $2.7 million U.S. Department of Energy grant in August 2017 to accelerate, with an OEM partner, the commercialization of its residential furnace replacement. SMTI was recently awarded a smaller follow-on grant from the DOE, which kicked off in July.
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