This round of financing generated C$59 million. Valero Energy Corp. joined Enerkem's existing investors Waste Management, Rho Ventures, Braemar Energy Ventures and Cycle Capital, which have each invested in the new equity round. Valero and Enerkem have also agreed to jointly consider commercial opportunities.
Through Valero, Ultramar Ltd., which is one of the top retailers and refiners in Quebec, is now associated with the province's leading second-generation biofuels company, Enerkem. This alliance will provide synergies and will contribute to propelling Quebec forward as a frontrunner in the clean energy industry.
"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. "We are proud of our association with Ultramar's parent company, which will contribute to strengthening our leadership position in the growing market for clean transportation fuels and biochemicals."
Enerkem's financing round will support the company's large roll-out of current and future planned projects. In addition to its two plants already in operation in Quebec, Enerkem is developing full-scale commercial facilities in North America, including a waste-to-biofuels facility in Edmonton, Alberta and one in Pontotoc, Mississippi. These facilities will produce 36 million litres of cellulosic ethanol per year, which is enough to fuel over 400,000 cars annually on a five percent ethanol blend. By converting garbage into fuels and chemicals, Enerkem contributes to a better environment while providing the world with clean energy and green products.
About Enerkem
Enerkem is pioneering a new line of chemicals and fuels made from garbage instead of oil or other fossil fuels. Enerkem's cost-effective technology uses waste materials, such as unrecyclable household garbage, demolition debris and used utility poles to create advanced ethanol, acetates and other useful clean chemicals that form our everyday products. The company currently operates two facilities in Quebec and in 2010 began construction of a municipal waste-to-biofuels plant in Alberta. In 2011, Enerkem expects to break ground on a facility in Mississippi for which it is receiving financial support from the USDA and U.S. DOE. Enerkem was named one of the World's 50 Most Innovative Companies by Fast Company Magazine in 2011. www.enerkemweb.wpengine.com
About Valero
Valero Energy Corporation is an international manufacturer and marketer of transportation fuels, other petrochemical products and power. Its assets include 14 petroleum refineries with a combined throughput capacity of approximately 2.6 million barrels per day, 10 ethanol plants with a combined production capacity of 1.1 billion gallons per year, and a 50-megawatt wind farm. Valero is also one of the largest retail operators with approximately 5,800 retail and branded wholesale outlets in the United States, Canada and the Caribbean under the Valero, Diamond Shamrock, Shamrock, Ultramar and Beacon brands. Based in San Antonio, Valero is a Fortune 500 company with approximately 20,000 employees. Please visit www.valero.com for more information.
Marie-Hélène Labrie
Vice President, Government Affairs and Communications
Enerkem Inc.
+ 1 514.875.0284 x 231
mlabrie@enerkem.com