I Power generates $2 million investment-WEB ONLY

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Anderson-based I Power Energy Systems, a spinoff of Remy International that makes co-generation power units for buildings, has raised $2 million from investors.

The private placement managed by Chicago-based David A. Noyes & Co. sold 16,000 series B convertible units at $125 each.

Proceeds will be used in part to introduce products, increase marketing and for general working capital, the company said in a news release.

The funding comes “as we ramp up production in the face of a substantial order influx, both domestic and overseas,” said I Power Chairman and CEO Michael Hudson.

I Power marries engines capable of burning fuels such as natural gas and landfill gas with generators to produce electricity and heat for buildings. Such co-generation equipment is growing popular for environmental reasons and because it reduces costs by getting off the electric grid during expensive peak hours.

Recently, I Power said it and a European partner would provide units to power the Westin Hotel Turnberry, a luxury Scottish hotel that will serve the 2009 British Open.

“Given the investment climate, the worst in many years, investor response was a testament to the strength and potential of I Power’s products and its management team,” Noyes Chairman L.H. Bayley said.

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