Enerkem Inc., a leading waste-to-biofuels and chemicals company, has closed a $59 million new round of financing. Valero Energy Corp. (NYSE: VLO) joins existing investors Waste Management, Inc. (NYSE: WM), Rho Ventures, Braemar Energy Ventures and Cycle Capital, in the new round of financing.
Credit Suisse acted as placement agent of the financing.
Funds will be used to support Enerkem’s large roll-out of current and future planned projects.
With US $130 million in financial support from the U.S. Department of Agriculture (USDA) and Department of Energy (DOE), Enerkem expects to break ground later this year for a plant in Pontotoc, Mississippi.
Construction is already underway on a similar 36 million litre per year waste-to-biofuels facility in Edmonton, Alberta, Enerkem’s second commercial facility.
“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,” said Vincent Chornet, President & CEO of Enerkem. “This buy-in is yet another testament to the solid ongoing growth of our company, which is uniquely positioned to successfully meet the demand for clean transportation fuels and biochemicals.”
