Enerkem, a Montréal-based producer of biofuels and renewable chemicals from waste, has secured $76.3 million in a follow-on financing.
New investor Suncor, a Calgary-based energy company, backed the round alongside existing investors.
The latter include Braemar Energy Ventures, Cycle Capital, Fondaction, Fonds de solidarité FTQ, Investissement Québec, National Bank of Canada, Rho Ventures, Sunkem, Waste Management of Canada and Westly Group.
Suncor will also share technical resources to support Enerkem’s growth.
Enerkem said the proceeds will fund development of its waste-to-energy facilities, including in Varennes, Québec, and Rotterdam, Holland.
The round, combined with the company’s $280 million deal in 2018, brings total financing to more than $676 million.
Enerkem closes a new round of financing for $76.3 M
MONTRÉAL, April 16, 2019 /CNW Telbec/ – Enerkem Inc., a global leader in biofuels production from solid waste, announces the closing of a new round of financing totalling C$76.3 million. The financing comes from Enerkem’s existing investors, as well as a new investor, Suncor Energy Inc.
This injection of additional capital will help foster the company’s growth by continuing the development of its other projects, including in Varennes, Québec, and Rotterdam, Holland.
Suncor, one of Canada’s largest energy companies, is joining Enerkem’s shareholders, comprising Braemar Energy Ventures, Cycle Capital, Fondaction, Fonds de solidarité FTQ, Investissement Québec, National Bank of Canada, Rho Ventures, Sunkem, the Westly Group and Waste Management of Canada. In addition to its equity interest, Suncor will share technical resources to support acceleration of Enerkem’s growth.
Similarly, as part of this financing, the Government of Québec has increased its equity ownership in Enerkem by $13.3 million through the Fonds du développement économique.
“We are now in a period of sustained growth and beginning a landmark phase of our technology’s implementation, with the expected launch of our Varennes plant and our Rotterdam project,” said Dominique Boies, President and CEO (acting) and Chief Financial Officer, Enerkem. “Thanks to a strong core of public and private investors, Enerkem has developed a clean, one-of-a-kind technology for commercial use. We are proud of also having the Government of Québec’s support to be able to pursue our development projects in an emerging and promising sector that is helping to build the new economy.”
Enerkem produces advanced biofuels and renewable chemicals from waste. Its exclusive disruptive proprietary technology converts non-recyclable municipal solid waste into methanol, ethanol and other widely used chemical intermediates. Headquartered in Montréal, Québec, Canada, Enerkem now employs over 200 people, more than 150 of them in Québec. The company operates a full-scale commercial facility in Alberta, as well as an innovation centre in Québec. Enerkem’s facilities are built as prefabricated systems based on the company’s modular manufacturing infrastructure that can be deployed globally. Enerkem’s technology helps diversify the energy mix and make everyday products greener, while offering a smart, sustainable alternative to landfilling and incineration. www.enerkem.com
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