But Alter NRG decided it was a nice opportunity to diversify its business, considering the plasma gasification market still requires some time to mature. Company president and CEO Mark Montemurro said Alter NRG has the balance sheet and executive team that will help CED or “CleanEnergy” grow its business, which today sits at $6 million in revenues. “From a cash position, the acquisition provides for more stable and near-term revenue and cashflow from geoexchange installations which will be enhanced by the larger but less predictable plasma gasification equipment sales,” the company said.

I wrote about CleanEnergy a few years ago, when the company was just getting started. Back then, its primary focus was to work with homebuilders that wanted to include geoexchange systems as an option for new homebuyers. One of its first projects was in 2006 with Ontario-based Marshall Homes, which offered geothermal and solar thermal as an option in one of its subdivisions. These days, CleanEnergy is busy installing geoexchange systems for hotels, schools, commercial office buildings, and high-end homes. It still works with builders, but will also work directly with large customers.

Alter NRG knew it had to come up with some way of generating cash flow. Selling gasification systems is a risky business and has long sales cycles, while selling geoexchange systems can take place in a rapidly maturing market that is currently supported with generous government subsidies. Sales cycles are shorter, allowing for cash flow. So while it might seem like an odd fit for NRG, it could turn out to be a wise acquisition.