December 6, 2022

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Enerchem raises another $ 255 million | Press

Enerchem raises another $ 255 million |  Press

Enerkem has raised $ 255 million in a new round of financing involving two new investors, Repsol and the Monarch Alternative Capital Fund.

Updated yesterday to 4:49 pm.

Helen Barrell

Helen Barrell
Press

In recent years, the company, which specializes in biofuels produced from residual materials, has raised nearly $ 1 billion in venture capital for projects still under development.

The company is reluctant to confirm down payments received from various investors since it started operations 20 years ago.

Being a private company, Enerchem does not want to reveal the history of capital that has grown over the years.

Enerchem representative

The company released a statement on Wednesday announcing the results of its most recent fundraising round $ 255 million. Repsol, a Spanish company that announced a partnership with Enerchem last year, is investing $ 170 million in Quebec.

Other new investor is Monarch Alternative Capital, an investment firm based in London and New York, which is betting $ 30 million on technology developed by Enerchem.

New shareholders have joined Suncore and other Enerchem shareholders, including Avenue Capital Group, which is re-injecting 30 million into Enerchem.

Other shareholders not involved in the new financing include Suncore, Row Ventures, Bremer Energy Ventures, Investment Quebec, Cycle Capital, Funds FTQ and Fundaxion.

In a press release, Enerchem said it had returned $ 25 million to the company without naming some of its existing shareholders.

Repsol is in the form of share capital (75 million) and convertible debt (95 million). Repsol last year partnered with Enerchem to build a waste-to-methanol plant near Tarragona, Spain. The plant, which was initially planned for 2025, has been announced to be commissioned by 2026.

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Enerchem Management is pleased with the arrival of Repsol as a shareholder.

Repsol is a global multi-energy supplier that will help accelerate our technology expansion into new markets.

Dominic Boyce, CEO of Enerchem, in a statement

With partners, Enerkem is building its first commercial plant in Quebec, Warrens, to produce biofuel from non-recyclable residues and forest biomass. “Things are taking their course,” the company said Wednesday.

The Recycled Carbon Warrens project is an 875 million project in which the Quebec and Ottawa governments have agreed to provide 160 million (Quebec) and 70 million (Ottawa). Hydro-Quebec also announced plans to build a hydrogen production facility at a cost of $ 200 million to supply the future plant.