FORGE Hydrocarbons Corp. has raised undisclosed amount of equity investment from Shell Ventures and a follow-on contribution from Valent Low-Carbon Technologies.
FORGE Hydrocarbons Corporation is a University of Alberta spin-off company based on a proprietary Lipid-to-Hydrocarbon (LTH) technology that offers an innovative approach to producing a cost effective “drop-in” renewable diesel fuel. FORGE’s patented LTH technology is capable of transforming waste fats and other low value organic oils into hydrocarbons that are indistinguishable from petroleum-based hydrocarbons, without any catalyst or hydrogen.
News funding will help build a first-of-its-kind $30 million commercial-scale, biofuel production plant in Sombra, Ontario.
FORGE technology was invented by Dr. David Bressler at the University of Alberta. It was licensed through TEC Edmonton to FORGE which was founded by biofuels entrepreneur Tim Haig, also founder of BIOX Corp, Canada’s first commercial renewable diesel company, now a part of World Energy.
photo credit: FORGE Hydrocarbons
FORGE announces investment from Shell Ventures and Valent Low-Carbon Technologies
EDMONTON, Alberta, Feb. 13, 2020 (GLOBE NEWSWIRE) — FORGE Hydrocarbons Corp. (“FORGE”), a Canadian biofuel start-up, announces an equity investment from Shell Ventures and a follow-on contribution from Valent Low-Carbon Technologies, which will help build a first-of-its-kind CAD$30 million commercial-scale, biofuel production plant in Sombra, Ontario.
FORGE’s patented Lipid-to-Hydrocarbon (LTH) technology creates renewable jet fuel, diesel and naphtha from waste fats and oils. FORGE’s renewable diesel and jet fuels are greater than 90 per cent less carbon intensive than fossil-based diesel. They are cheaper to produce than conventional renewable diesel and are ‘drop-in’ ready, which means they require no specialized blending infrastructure.
It is widely recognized that the global transport sector accounts for nearly 30 per cent of the world’s energy use and around a quarter of global energy-related carbon dioxide emissions. Different fuels and types of vehicles will be needed to meet the ever-growing demand for transport, while reducing emissions. To continue supplying customers with the fuels they will need in the future, biofuels can play a valuable role in reducing carbon dioxide emissions from the transport sector over the decades ahead.
FORGE is initially targeting the over four-billion-gallon mandated market in North America for renewable diesel and jet-fuels market. FORGE will tap into abundant, low-cost and often untapped lipid feedstocks.
The technology was invented by Dr. David Bressler at the University of Alberta. It was licensed through TEC Edmonton to FORGE which was founded by biofuels entrepreneur Tim Haig, also founder of BIOX Corp, Canada’s first commercial renewable diesel company, now a part of World Energy.
The capacity of the Sombra production plant is 7.5 million gallons of renewable fuels annually. The project will create approximately 150 construction and engineering jobs during the build phase and more than 45 full-time jobs for the commercial operation of the facility.
Shell Ventures joins FORGE’s funders and collaborators including World Energy, Lockheed Martin, Valent Low-Carbon Technologies and Sustainable Development Technology Canada.
The research, development and first pilot facility that enabled Lipid-to-Hydrocarbon technology were made possible by a series of provincial and federal investments from Natural Sciences and Engineering Research Council of Canada, Western Economic Diversification Canada, Alberta Economic Development, Trade and Tourism, Alberta Livestock and Meat Agency, Alberta Innovates, Future Energy Systems: University of Alberta, Natural Resources Canada and Mitacs.
“We know that oil under the earth’s crust was created from lipids without expensive catalysts and hydrogen. FORGE mimics nature’s processes, except that we do it in hours not millions of years.”
— Tim Haig, Founder & CEO, FORGE Hydrocarbons
“Biofuels are critical in the move to lower-carbon marine, aviation and heavy-duty transport. Collaboration will be key to a successful energy transition and Shell’s investment in FORGE to progress this commercial-scale project can help accelerate this technology.”
— Andrew Murfin, General Manager Advanced Biofuels at Shell
“FORGE has unlocked nature’s ways in a cost-competitive, feedstock abundant and capital-light business model. This is a cornerstone technology of the low-carbon fuels value chain that the global transportation sector in air, sea and land, has been searching for.”
— Karlis Vasarais, EVP, Valent Low-Carbon Technologies
“This is a prime example of how basic research can drive remarkable innovations and economic benefits. When a major international company like Shell invests, it further demonstrates the power of research and university-industry connections. The University is very proud to have nurtured FORGE’s evolution through 17 years of research to technology development to company creation and beyond.”
— Matthias Ruth, Vice-President (Research and Innovation), University of Alberta.
About Shell Ventures
Shell Ventures is the corporate venture capital arm of Royal Dutch Shell plc (“Shell”). With major offices in Europe, the USA, India and China, Shell Ventures invests in innovative technology companies, business models and growth plays to further the development of energy solutions and new technologies that have the potential to create substantial deployment value in Shell. Continuing Shell’s tradition in venture capital since 1998, Shell Ventures’ investment focus includes oil & gas technologies, renewable energy technologies and mobility solutions. Shell Ventures co-invests with other corporate investors, venture capital funds and angel investors and will invest in both early stage and late stage (growth capital) companies. Visit shell.com/shell-ventures.
About Valent Low-Carbon Technologies
Valent is a Canadian hybrid industrial technology development and investment company that is aggregating the low-carbon fuels’ value chain in aviation, marine and heavy land transport. Valent is a coalition of oil & gas stakeholders, major institutional investors and seasoned energy technology entrepreneurs with operations across Canada including Alberta, South West Ontario, and the Maritimes. Visit valentcorp.com.
About FORGE Hydrocarbons
FORGE Hydrocarbons Corporation is a University of Alberta spin-off company based on a proprietary Lipid-to-Hydrocarbon (LTH) technology that offers an innovative approach to producing a cost effective “drop-in” renewable diesel fuel. FORGE’s patented LTH technology is capable of transforming waste fats and other low value organic oils into hydrocarbons that are indistinguishable from petroleum-based hydrocarbons, without any catalyst or hydrogen. The LTH technology utilizes a robust integrated biorefining approach to produce true hydrocarbon fuels, solvents and chemicals. Visit forgehc.com.
Tim Haig, CEO
FORGE Hydrocarbons Corp.