Enerkem raises $59 million in latest financing round

EDMONTON, June 1, 2011 /CNW Telbec/ - Enerkem Inc., a leading waste-to-biofuels and chemicals company, announced today the closing of C$59 million in financing. As part of this financing, Valero Energy Corp. joins existing investors Waste Management, Rho Ventures, Braemar Energy Ventures and Cycle Capital, who have each invested in the new equity round.

With its investments in 10 ethanol plants throughout the Midwest, Valero has long been a champion of renewable fuels. The investment in Enerkem demonstrates Valero's commitment to the advanced biofuel sector. Valero and Enerkem have also agreed to jointly consider commercial opportunities.

"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. "This buy-in is yet another testament to the solid ongoing growth of our company, which is uniquely positioned to successfully meet the demand for clean transportation fuels and biochemicals in Alberta and across North America."

Enerkem's financing round will support the company's large roll-out of current and future planned projects. Construction is already underway on a 36 million litres per year waste-to-biofuels facility in Edmonton, which will serve as a catalyst to develop other biorefineries across North America. This pioneering project, which has received support from the City of Edmonton, Alberta Innovates - Energy and Environment Solutions, and Alberta Energy, will produce enough ethanol locally to fuel over 400,000 cars per year running on a five percent ethanol blend. The plant's annual production capacity will meet 14% of the ethanol annually needed in Alberta to meet the provincial renewable fuels standard (RFS).

This financing comes on the heels of US$130 million in financial support from the U.S. Department of Agriculture (USDA) and Department of Energy (DOE) for a similar plant in Pontotoc, Mississippi, expected to break ground later this year.

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 similar 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.

About Waste Management
Waste Management, Inc., based in Houston, Texas, is the leading provider of comprehensive waste management services in North America. Through its subsidiaries, the company provides collection, transfer, recycling and resource recovery, and disposal services. It is the largest residential recycler in North America and a leading developer, operator and owner of waste-to-energy and landfill gas-to-energy facilities in the United States. The company's customers include residential, commercial, industrial, and municipal customers throughout North America. To learn more information about Waste Management visit www.wm.com or www.thinkgreen.com.