Startup company Totally Green has received $20 million for its innovative composting technology that works off what seems to be the model of the day - solar leasing.
The company wants to make composting easy for large food waste producers like commercial kitchens and food processing plants. Its ORCA Green Machine digests up to 2,400 pounds of organic food waste a day.
Like solar leasing, Totally Green plans to place its machines at no upfront cost to customers. Instead, they'll sign service contracts that reduce waste hauling costs for customers while creating a recurring revenue stream for Totally Green.
Toronto-based York Plains Investment Corp made the investment.
Organic waste and foods account for over 30% of the 250 million tons of waste generated every year in the US. Companies and cities can't reach high waste-diversion or zero-landfill goals without composting.
"Our partnership with Totally Green allows us to leverage our experience and existing strong ties to the commercial services business," says Shawn Dym, managing director at York Plains.
"This includes support for Totally Green's transition from a sales to a service model, which we are confident will be highly successful given similar programs we advanced with past business ventures and the successful pilot of the ORCA Green machine in Toronto."
"The rate of growth of many of their ventures has been dramatic, and their largest success, Direct Energy, sold for nearly $1 billion," says Rob Phillips, CEO of Totally Green.
This leasing model is even being tried to make geothermal systems more attractive.