RegenEAU receives support from Fondaction, Cycle H2O, C3E, Groupe MCF, and Desjardins to advance wastewater heat recovery in support of building energy efficiency

QUEBEC CITY, June 3, 2025 /CNW/ - RegenEAU is proud to announce the closing of an oversubscribed funding round of CAD 3.1 million to scale the deployment of its innovative domestic hot water production system that harnesses residual heat from building wastewater. The round was co-led by Fondaction and the Cycle H2O Fund, with participation from the Centre for Excellence in Energy Efficiency (C3E), Groupe Marcel Charest et Fils (MCF), and Desjardins through its Startup in Residence accelerator program.

This capital injection will enable RegenEAU to scale up production, grow its team, support commercialization efforts, and obtain energy efficiency certifications for its innovative system.

Wastewater heat recovery that reduces costs and GHG emissions

Domestic hot water production is typically one of the largest energy expenses in multi-unit residential buildings, a segment for which RegenEAU's solution is specifically designed.

In Quebec, 85% of the energy used to heat domestic water is wasted.

"The thermal energy in wastewater is an abundant, free, and, until now, largely untapped resource. By recovering it, we can significantly reduce greenhouse gas emissions from the real estate sector, which alone accounts for 13% of Canada's GHG emissions in Canada, while also lowering energy bills for buildings," says Andrée-Lise Méthot, Founder and Managing Partner of Cycle Capital.

Alain Longpré, Deputy Head of Impact and Sustainable Investments at Fondaction, agrees:
"Reducing the carbon footprint of buildings by improving their energy efficiency is a key lever in the fight against climate change. RegenEAU's technology comes at the right time to help meet Canada's national goal of achieving carbon neutrality by 2050."

Launched in 2023, RegenEAU's modular system has proven effective in both new construction and retrofit projects. Combining a patented, easy-to-install solid-liquid separation technology that recovers heat from both greywater and blackwater with an efficient hot water production unit, the RegenEAU system contributes to both environmental sustainability and economic viability for property owners and managers.

"This funding round marks a major milestone in accelerating the deployment of our systems. We are truly grateful to our investors for their trust and valuable support," says David Pineault, CEO of RegenEAU.

A local supply chain and a market ready for change

Roughly 60% of the system's components are standard parts sourced from multiple suppliers, mostly based in Canada. For its proprietary components, RegenEAU relies on manufacturers located within 100 km of its assembly plant in Quebec.

This local supply chain is a competitive advantage, as is the readiness of the real estate market to adopt this kind of sustainable technologies. Utilities like Hydro-Québec and Énergir are also creating favorable conditions for their implementation.
Europe also represents a potential market, with France already expressing interest in importing the technology.

About S3nergy Inc. DBA RegenEAU
RegenEAU is at the forefront of circular economy solutions focused on in wastewater heat recovery. In response to the high energy costs of domestic hot water in multi-residential buildings, RegenEAU captures and reuses residual heat from wastewater to improve their energy performance. RegenEAU democratizes access to energy efficiency and decarbonization solutions. Learn more at: https://www.regeneau.com

About Fondaction
A pioneer for over 25 years, Fondaction is an investment fund for individuals and businesses committed to the positive transformation of Quebec's economy, making it more just, inclusive, green, and high-performing. Created by the CSN, Fondaction represents tens of thousands of savers and hundreds of companies working to move Quebec forward. As of November 30, 2024, Fondaction manages more than $3.99 billion in net assets, largely invested in hundreds of businesses and financial markets, with a focus on generating economic, social, and environmental impact alongside financial returns. Fondaction contributes to job creation and retention, reduces inequalities, and combats climate change. Learn more at fondaction.com or on LinkedIn.

About Cycle H2O
Cycle H2O, part of the Cycle Capital fund family, is an early-stage venture capital fund dedicated to water technology startups in Quebec, Canada, and the United States. Led by Simon Olivier, Senior Partner at Cycle Capital, the fund is a partnership between Cycle Capital, a climate tech venture capital firm, and H2O Innovation Inc., a global water solutions provider. The fund invests in companies developing innovative environmental solutions for treating, conserving, and better utilizing water. Learn more at: cyclecapital.com/CycleH2O

About Groupe MCF
Groupe MCF is a management company bringing together several businesses, including Marcel Charest et Fils. It specializes in financing high-potential innovative companies like RegenEAU. Its goal is to create lasting, positive impact in communities and for future generations. The group's portfolio is expected to diversify over the coming years, with significant asset growth ahead.

About Desjardins Group
Desjardins Group is the largest financial cooperative in North America and the sixth largest in the world, with assets of $470.9 billion as of December 31, 2024. Desjardins has been recognized among Canada's top employers by Forbes and Mediacorp and relies on the expertise of over 55,200 employees. To meet the diverse needs of its members and clients, both individuals and businesses, Desjardins offers a full range of products and services through its extensive branch network, virtual platforms, and subsidiaries across Canada. Ranked among the world's strongest banking institutions by The Banker magazine, Desjardins holds some of the industry's top capital ratios and credit ratings. In 2025, Desjardins celebrates its 125th anniversary—marking over a century of ambition, presence, and expertise in service to its members and clients.

Desjardins Startup in Residence is a program that supports and invests in technology companies generating positive socio-economic impacts in communities.

SOURCE RegenEAU