Sanwa to Fund Firm’s Small Power Plants

Ultrasystems Inc., an Irvine-based high-technology company and power plant builder, has signed an agreement under which Sanwa Business Credit Corp. of Chicago will finance the manufacturing and installation of Ultrasystems’ mini-power plants for commercial and industrial buildings.

The small generating units, run by four-cylinder engines powered by natural gas, are “baby power plants” that supply electricity and hot water and help cut the costs of utility bills, according to Russell Greengard, Ultrasystems senior vice president.

Sanwa, the U.S. subsidiary of Japan’s Sanwa Bank Limited, has agreed to provide “tens of millions” to Ultrasystems to manufacture and install the units, Greengard said. He declined to be more specific about the financial arrangements.

The tiny power plants, called micro cogen units, were developed a little over a year ago by Design Systems Research and Development Inc. in Northern California. Ultrasystems has the exclusive distribution agreement for the units, which are designed for hospitals, restaurants, motels and industry.

Ultrasystems already has seven micro cogen units installed and 39 more contracts for the units.