Enerkem secures $280M financing with new and existing investors

Enerkem Inc. has completed a $280 million equity and debt investment round of financing, its largest to date, with new investors, BlackRock and Sinobioway Group (北京北大未名生物工程集团有限公司), and existing investors, Rho Ventures, Braemar Energy Ventures, Waste Management of Canada, Investissement Québec (IQ), Fonds de solidarité FTQ, Cycle Capital Management, Fondaction, The Westly Group, and the National Bank of Canada.

Enerkem’s three largest shareholders are ##Subscribe today to see our research on this and all other subscriber ONLY items##

National Bank Financial Inc. and Scotia Capital Inc. served as financial advisors to Enerkem.

Montreal based Enerkem Inc. is a world leading waste-to-biofuels and renewable chemicals producer. Its disruptive proprietary technology converts non-recyclable, non-compostable municipal solid waste into methanol, ethanol and other widely-used chemical intermediates.

Enerkem previously announced the signing of an investment and partnership agreement with Sinobioway worth over $125 million. Enerkem amd Sinobioway plan to set up a major joint venture for the construction of over 100 Enerkem state-of-the-art facilities in China by 2035.

“We are very pleased to welcome new investors along with the support of our longstanding existing investors,” said Enerkem’s President and Chief Executive Officer Vincent Chornet. “This new and significant financing will help accelerate our growth and further expand project development and implementation. Now that we have launched the world’s first commercial-scale bioethanol operation in Edmonton, we can focus our efforts on building a strong circular economy for communities around the world by deploying new facilities that address the growing challenges related to waste management and sustainable mobility.”

“BlackRock is pleased to join the investment group on behalf of our clients and to help facilitate the launch of innovative waste-to-biofuel facilities worldwide,” said David Trucano, Portfolio Manager, BlackRock Global Credit team, which invested in the company’s senior notes.

photo credit: Enerkem

Ted Liu

Ted Liu, M.Sc. (Mining), MBA (Finance), is the Editor of Private Capital Journal and CanadaMetals.ca, and former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA). Ted was the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, the most sophisticated and advanced all private capital and public market financing database.