By CEP Staff • 7 April 2022 in News

Canadian biofuels company Enerkem has closed $255 million in new financing, led by Spanish company Repsol, to accelerate the growth of its waste gasification and low-carbon biofuels platform in Europe. Repsol will invest $170 million, including $75 million of equity, in Enerkem, while Monarch Alternative Capital will contribute $30 million, Avenue Capital Group will reinvest $30 million, and existing shareholders reinvest $25 million. Repsol and Monarch join Enerkem’s base of established investors, which includes Rho Ventures, Braemar Energy Ventures, Investissement Québec, Cycle Capital, Fonds de solidarité FTQ, Fondaction and Suncor Energy. “We are privileged to have high-calibre international investors supporting our vision and the deployment of our disruptive technology,” remarked Enerkem CEO Dominique Boies. “These endorsements confirm the added value of our technology in the efficient and sustainable management of residual waste and forest biomass, transforming them into circular chemicals and advanced biofuels for road, air and sea transportation. “In this way, we will contribute to decarbonising sectors of activity that have a large environmental footprint. “The geographic expansion of our investor base will help position Enerkem as a leading provider of technology to improve the global environment. “We hope that this financing round will have a significant ripple effect on other Quebec and Canadian investors to stimulate innovative clean technologies.” JP Morgan Securities acted as exclusive placement agent to Enerkem in the financing. Portfolio developments As a result of the investment, Repsol will join Suncor Energy as a strategic shareholder and help Enerkem expand operations in Portugal and Spain, where it is developing the Ecoplanta Molecular Solutions facility. Enerkem partnered with Agbar last year to build Ecoplanta Molecular Solutions in El Morrell, Catalonia. The project will process approximately 400,000 tonnes of non-recyclable solid waste and produce nearly 240,000 tonnes of methanol per annum once operations start in 2026. Ecoplanta Molecular Solutions was one of seven projects selected by the European Commission last year to receive financial support, with a confirmed grant of up to €106 million. “At Repsol, we are truly proud to become a shareholder in Enerkem thus supporting its development to consolidate as a leader in waste gasification technology to produce renewable fuels and chemicals," added Juan Abascal, Executive Director for Industrial Transformation & Circular Economy at Repsol. "We anticipate that its cutting-edge technology, recently recognized by the EU Innovation Fund, will be key to the decarbonisation and circularity of the chemical and fuel industry. “Enerkem has several projects in different stages of development that will help Repsol accelerate its circular economy initiatives and open new paths for production of low-carbon fuels, synthetic fuels, and renewable chemical products.”