Canada-based waste-to-biofuel technology producer Enerkem has raised C$255m ($202m) in an equity and convertible debt round led by oil and gas producer Repsol.
Repsol’s provided approximately $59.4m in equity and $75.2m in convertible note financing while Monarch Alternative Capital and Avenue Capital Group each put up $23.7m in convertible debt financing and unnamed existing shareholders put up another $19.8m in equity funding.
Enerkem converts non-recyclable solid waste into biofuels and renewable chemicals for a range of uses, including ethanol and methanol. It is looking to deploy its technology through new projects in the Iberian Peninsula through a strategic partnership with Spain-headquartered Repsol.
Synthetic crude oil producer Suncor Energy, chemicals provider Sunkem, waste management service Waste Management of Canada and financial services firm National Bank of Canada took part in a $56.7m round for Enerkem in 2019 alongside Braemar Energy Ventures, Cycle Capital, Fondaction, Fonds de solidarité FTQ, Investissement Quebec, Rho Ventures and Westly Group.
The 2019 funding followed a $224m round the previous year featuring Waste Management of Canada, National Bank of Canada, industrial conglomerate Sinobioway, BlackRock, Rho Ventures, Braemar Energy Ventures, Investissement Québec, Fonds de solidarité FTQ, Cycle Capital, Fondaction and Westly Group.
Enerkem had previously raised $115m in equity and debt financing from unnamed existing investors in 2015, boosting its total funding to over $300m.
Atel Ventures, the investment arm of leasing services firm Atel, was an earlier backer, as were Waste Management of Canada, petroleum refiner Valero Energy, Rho Ventures, Braemar, Westly Group, Cycle Capital, Fonds de solidarité FTQ, Fondaction, BDR Capital, EB Investments and Quince Associates.
Enerkem’s chief executive, Dominique Boies, said: “The geographic expansion of our investor base will help position Enerkem as a leading provider of technology to improve the global environment. We hope that this financing round will have a significant ripple effect on other Quebec and Canadian investors to stimulate innovative clean technologies.”
Photo courtesy of Enerkem.
