Smart Pipe Company, Inc. the developer of the high pressure, self-monitoring internal pipeline replacement system, announced it has secured an additional US$12.0 million financing round with an US$8.0 million investment from a subsidiary of Enbridge Inc. (TSX:ENB) (NYSE:ENB), a leader in the safe and reliable delivery of energy in North America. The funds will be used to accelerate the commercialization of the company's XPL-300® series system.
"Smart Pipe is delighted to have Enbridge as a partner at this crucial stage of our market entry. Having the support of Enbridge really speaks to the quality of the solution we've developed over the past few years", commented Smart Pipe Company's President and CEO, Gary Littlestar. "The XPL-300® is on schedule to make a major impact on the pipeline industry, changing the way pipeline operators think about the use of composite materials to replace old, degraded steel. From the early stages of our discussions with Enbridge, it was apparent that there are many similarities in our respective corporate cultures. Using technology to address the increasing focus on safe pipeline operations and integrity management is part of our joint vision".
Smart Pipe's solution is a marked departure from the traditional approach used to remediate long segments of pipeline infrastructure. Currently marketed only for use in North America, the XPL-300® series has gotten off to a strong start after several years of research and development, culminating in the issuance of ASTM F2896-11 - "Standard Specification for Reinforced Polyethylene Composite Pipe for the Transport of Oil and Gas and Hazardous Liquids". Recent projects have proven the validity of the technology from both an engineering and cost standpoint.
"The safe and reliable operation of our pipeline systems is Enbridge's top priority and we are continually looking for new ways to improve upon our existing practices," said Chuck Szmurlo, Vice President Alternative & Emerging Technology, Enbridge. "Smart Pipe's technology is an innovative solution that economically addresses pipeline integrity challenges in critical areas, while also minimizing the environmental footprint associated with such work."