Enerkem closes $255M financing round to try and grow its gasification technology
The new round of financing is expected to drive Enerkem's technology to process more non-recyclable solid waste into methanol.
Mining & Resources
MONTRÉAL — Enerkem, a company involved in the production of low-carbon intensity biofuels and circular chemicals from waste materials, announces the closing of a new financing totaling $255 million.
Repsol invests $170 million, of which $75 million is in Enerkem’s equity. In doing so, Repsol joins existing shareholder Suncor Energy as a strategic shareholder to accelerate the adoption and deployment of Enerkem’s technology and to develop new projects in the Iberian Peninsula (Spain and Portugal).
In addition, Monarch Alternative Capital, a new investor, is contributing $30 million to the round while Avenue Capital Group is reinvesting $30 million. Finally, there is $25 million reinvested by some existing shareholders.
Repsol becomes a strategic partner to try and accelerate Enerkem’s deployment in Europe
Since last year, Repsol has partnered with Enerkem and Agbar to build Ecoplanta Molecular Solutions in El Morrell, near Tarragona, Spain. The plant, scheduled to be operational in 2026, will use Enerkem’s technology to process some 400,000 tonnes of non-recyclable solid waste per year and produce close to 240,000 tonnes of methanol.
“We are pleased to welcome Repsol as a shareholder,” said Dominique Boies, Chief Executive Officer of Enerkem. “Repsol is a global multi-energy supplier that will greatly assist in accelerating the deployment of our technology in new markets. Repsol’s equity investment in Enerkem strengthens our position as a leader in the renewable fuels and chemicals sectors and in building a circular economy.”
“We are privileged to have high-calibre international investors supporting our vision and the deployment of our disruptive technology. 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 decarbonizing 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,” concluded Dominique Boies.