Waste Management backed Enerkem raises $76.3M led by Government of Québec

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By Ted Liu

Enerkem Inc., a global leader in biofuels production from solid waste, has raised $76.3 million in a new round of financing with Enerkem’s existing investors, as well as a new investor, Suncor Energy Inc.

Government of Québec increased its equity ownership in Enerkem by $13.3 million through the Fonds du développement économique.

Suncor is joining Enerkem’s shareholders, comprising of Waste Management of Canada, Rho Ventures, Braemar Energy Ventures, Cycle Capital, Fondaction, Fonds de solidarité FTQ, Investissement Québec, National Bank of Canada, Sunkem, the Westly Group.

Suncor recently acquired an equity stake in Europe’s first advanced waste-to-chemicals facility in Rotterdam, the Netherlands. The project is being developed by a consortium consisting of Air Liquide, Nouryon (formerly AkzoNobel Specialty Chemicals), Enerkem and the Port of Rotterdam.

In 2018, Enerkem raised $280 million in new debt and equity financing with debt provider BlackRock and Sinobioway joining as new investors.

As part of the financing, Sinobioway committed to investing over $125 million in the form of equity investment in Enerkem Inc., future licenses, equipment manufacturing and sales, as well as for the creation of a major joint venture that will lead the construction of over 100 Enerkem state-of-the-art facilities in China by 2035.

photo credit: Enerkem

News Release

Enerkem closes a new round of financing for $76.3 M

MONTRÉAL, April 16, 2019 /CNW Telbec/ – Enerkem Inc., a global leader in biofuels production from solid waste, announces the closing of a new round of financing totalling C$76.3 million. The financing comes from Enerkem’s existing investors, as well as a new investor, Suncor Energy Inc.

This injection of additional capital will help foster the company’s growth by continuing the development of its other projects, including in Varennes, Québec, and Rotterdam, Holland.

Suncor, one of Canada’s largest energy companies, is joining Enerkem’s shareholders, comprising Braemar Energy Ventures, Cycle Capital, Fondaction, Fonds de solidarité FTQ, Investissement Québec, National Bank of Canada, Rho Ventures, Sunkem, the Westly Group and Waste Management of Canada. In addition to its equity interest, Suncor will share technical resources to support acceleration of Enerkem’s growth.

Similarly, as part of this financing, the Government of Québec has increased its equity ownership in Enerkem by $13.3 million through the Fonds du développement économique.

“We are now in a period of sustained growth and beginning a landmark phase of our technology’s implementation, with the expected launch of our Varennes plant and our Rotterdam project,” said Dominique Boies, President and CEO (acting) and Chief Financial Officer, Enerkem. “Thanks to a strong core of public and private investors, Enerkem has developed a clean, one-of-a-kind technology for commercial use. We are proud of also having the Government of Québec’s support to be able to pursue our development projects in an emerging and promising sector that is helping to build the new economy.”

About Enerkem
Enerkem produces advanced biofuels and renewable chemicals from waste. Its exclusive disruptive proprietary technology converts non-recyclable municipal solid waste into methanol, ethanol and other widely used chemical intermediates. Headquartered in Montréal, Québec, Canada, Enerkem now employs over 200 people, more than 150 of them in Québec. The company operates a full-scale commercial facility in Alberta, as well as an innovation centre in Québec. Enerkem’s facilities are built as prefabricated systems based on the company’s modular manufacturing infrastructure that can be deployed globally. Enerkem’s technology helps diversify the energy mix and make everyday products greener, while offering a smart, sustainable alternative to landfilling and incineration. www.enerkem.com

SOURCE Enerkem Inc.

Media relations, 514 375-7800, communications@enerkem.com