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Enerkem collects another 255 million | The Press



Enerkem raised 255 million in a new round of financing involving two new investors, Repsol and the Monarch Alternative Capital fund.

In recent years, the company that specializes in biofuels produced from residual materials has received nearly $1 billion in venture capital for its projects still under development.

The company does not want to confirm the down payments received from various investors since the beginning of its activities, twenty years ago. “As Enerkem is a private company, it does not wish to reveal the history of the capital that has been raised over the years,” said an Enerkem spokesperson.

The company issued a press release yesterday announcing the results of its most recent fundraising of 255 million. Repsol, a Spanish company which announced a partnership with Enerkem last year, is investing 170 million in the Quebec company.

The other new investor is Monarch Alternative Capital, an investment company based in London and New York which is betting 30 million on the technology developed by Enerkem.

The new shareholders join Suncor and other Enerkem shareholders, including Avenue Capital Group, which is reinjecting 30 million into Enerkem.

The other shareholders who did not participate in this new financing are, in addition to Suncor, Rho Ventures, Braemar Energy Ventures, Investissement Québec, Cycle Capital, Fonds FTQ and Fondaction.

In a press release, Enerkem specifies that some of these existing shareholders, without naming them, have returned 25 million to the company.

Repsol’s participation will be in the form of equity (75 million) and convertible debt (95 million). Repsol partnered with Enerkem last year to build a waste-to-methanol plant near Tarragona in Spain. The commissioning of this plant, initially planned for 2025, is announced for 2026.

Enerkem’s management is delighted with the arrival of Repsol as a shareholder. “Repsol is a global supplier specializing in various energies which will help accelerate the deployment of our technology in new markets”, commented its CEO, Dominique Boies, in a press release.

With partners, Enerkem is building its first commercial plant in Quebec, in Varennes, which will produce biofuel from non-recyclable residual materials and forest biomass. “The works are taking their course,” the company said on Wednesday.

Recyclage Carbone Varennes is an 875 million project, in which the governments of Quebec and Ottawa have agreed to contribute 160 million (Quebec) and 70 million (Ottawa). Hydro-Quebec has also announced its intention to build hydrogen production facilities at a cost of 200 million to supply the future plant.

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