Enerkem gets new investment infusion
June 2, 2011 – Enerkem has closed $59 million in new financing.
June 2, 2011 – Enerkem has closed C$59
(US$60) million in financing. As part of this financing, Valero Energy
Corp. joins existing investors Waste Management, Rho Ventures, Braemar Energy
Ventures, and Cycle Capital, who have each invested in the new equity round.
Valero has long been a champion of
renewable fuels in the United States, with its investments in 10 ethanol plants
throughout the Midwest. The investment in Enerkem demonstrates its commitment
to the advanced biofuel sector. Valero and Enerkem have also agreed to consider
joint commercial opportunities.
“With Valero joining Waste Management as a
strategic investor, Enerkem becomes one of the very few renewable products
companies that is aligned with industry leaders from both upstream and
downstream parts of the business,” says Vincent Chornet, president and CEO of
Enerkem’s financing round, for which Credit
Suisse acted as agent, will support the its large rollout of current and future
planned projects. It comes on the heels of US$130 million in financial support
from the U.S. Departments of Agriculture and Energy for a plant in Pontotoc,
Mississippi, expected to break ground later in 2011. Construction is already
underway on a similar 36-million litre/year (10-million
gallon/year) waste-to-biofuels facility in Edmonton, Alberta.