Kanin Energy develops, finances and operates on-site power plants that turn heat discarded by gas processors, cement plants, steel mills and other heavy industrial facilities into electricity. The privately held developer announced an equity financing of up to $100 million to expand that work across Canada and the United States. Its plants serve host facilities that want dependable power without funding an energy project themselves, as well as utilities and other off-takers that buy the output.
At a typical waste-heat project, Kanin installs heat exchangers in an industrial exhaust stack, transfers the captured energy into thermal oil and uses that cycle to turn a turbine that generates electricity. The output can stay behind the meter at the host site or go to a local utility or other off-taker. Because the heat comes from an existing process, generation requires no additional fuel and produces no additional emissions, according to the company.
The company packages that engineering into an energy-as-a-service model. Kanin arranges financing, engineering, construction, operation and maintenance for the life of a project instead of selling industrial operators a turbine. It then earns through the power project: electricity can be sold directly to the host at a discount or to the grid, with the host eligible for a royalty when power is exported. That structure removes the host’s upfront capital requirement while leaving Kanin responsible for project performance.
The financing consists of commitments of up to $50 million from S2G Investments, which led, and up to $50 million from Canada Growth Fund. Kanin said the equity will support development, construction and operation of waste-heat-to-power and other on-site generation projects in the two countries. Both investor commitments were expressed as upper limits, making $100 million the announced ceiling for the financing.
Kanin said it now has about 50 megawatts of waste-heat projects in construction or operation. Its operating 9.2-megawatt Washington Court House project captures heat from a Tallgrass gas compressor station and supplies power to the University of Dayton. At Phillips 66’s Mewbourn gas-processing plant in Colorado, a 7-megawatt project under construction is designed to use heat from on-site gas turbines and supply the plant; Kanin lists June 2028 as the planned operation date.
The capital is intended to move Kanin from one disclosed operating installation toward a portfolio of owned and operated industrial power assets. The turbine technology is established; the distinctive part of the business is finding usable heat, securing a host and off-taker, financing the equipment and carrying each site through construction. The next test is whether Kanin can repeat that site-by-site process fast enough to turn the new commitments into a producing fleet.