Enerkem, the Canadian waste-to-biofuels company, has closed C$59 million ($60.9 million) in financing. The group of investors, led by U.S.-based refiner Valero Energy, put up the money to support the development and construction of biofuel refineries in the southeastern United States. Returning investors, including Waste Management, Rho Ventures, Braemar Energy Ventures and Cycle Capital, also participated in the new equity round.
Valero is a seasoned biofuel investor, having invested in 10 ethanol plants across the Midwest.
“With Valero joining Waste Management as a strategic investor, Enerkem becomes one of the very few renewable products companies that is aligned with industry leaders from both upstream and downstream parts of the business,” said Vincent Chornet, president and chief executive officer of Enerkem, in a prepared statement.
Last year Waste Management, which is fast becoming one of the most active investors in the waste-to-biofuel space, participated in Enerkem’s C$54 million financing.
Enerkem recently garnered US$130 million in financial support from the U.S. Department of Agriculture (USDA) and Department of Energy (DOE) for a plant in Pontotoc, Mississippi. The plant is expected to break ground later this year. Construction is also underway on a similar 36 million liter per year waste-to-biofuels facility in Edmonton, Alberta.