Synthetic crude producer Suncor Energy and waste management services provider Waste Management of Canada have backed a C$76.3m ($56.7m) funding round for Enerkem, the Canada-based developer of a process that converts solid waste to biofuel.
The round included financial services firm National Bank of Canada, Braemar Energy Ventures, Cycle Capital, Fondaction, Fonds de solidarité FTQ, Investissement Quebec, Rho Ventures, Sunkem and Westly Group.
The government of Quebec also participated, supplying $9.9m through its Fonds du développement économique vehicle.
Founded in 2000, Enerkem produces biofuels and renewable chemicals from non-recyclable solid waste. Its products include methanol and ethanol and are currently all manufactured at its commercial facility in the Canadian province of Alberta.
The funding will support the development of additional production plants in Varennes, in the province of Quebec, and Rotterdam, in the Netherlands. Suncor will offer technical resources to help accelerate Enerkem’s growth.
Enerkem announced last month that oil and gas company Shell had become an equity partner in the Rotterdam plant, joining industrial gases supplier Air Liquide, specialty chemicals producer Nouryon and the Port of Rotterdam. The company itself has raised more than $576m in equity and debt financing to date.
Waste Management of Canada made its first investment in Enerkem in 2010, when it took part in a $53.8m funding round. It returned for a $60m round in 2011 that included petroleum refiner Valero Energy, Braemar Energy Ventures, Rho Ventures and Cycle Capital.
Waste Management of Canada subsequently joined industrial conglomerate Sinobioway for a $224m round in February 2018 that was also backed by National Bank of Canada, BlackRock, Rho, Braemar, Investissement Québec, Fonds de solidarité FTQ, Cycle Capital, Fondaction and Westly.
Enerkem’s shareholders also include Atel Ventures, the corporate venturing subsidiary of leasing services provider Atel, as well as BDR Capital, EB Investments and Quince Associates.
