Enerkem announces additional project equity financing
Montreal, Canada-based Enerkem Inc. recently announced that Waste Management and EB Investments are investing C$15 million for a minority interest in Enerkem Alberta Biofuels L.P., which is currently building a commercial-scale facility in Edmonton, Alberta. The facility will feature Enerkem’s proprietary technology. According to Enerkem, total financing raised by the company in 2011—at both the corporate and project subsidiary levels—now amounts to C$103 million.
According to Enerkem spokeswoman Marie-Helene Labrie, the announcement focuses exclusively on equity financing for her company’s project in Edmonton, and will not impact the company’s other projects. Construction of the Edmonton facility is expected to be complete during fourth quarter 2012, she said. Once operational, the Edmonton facility will utilize landfill-bound waste as feedstock for renewable fuel and chemical production. Construction on a second facility in Pontotoc, Miss., is expected to begin in 2012 once key project milestones are completed.
Information released by Enerkem also states that the project equity financing contributed by Waste Management and EB Investments supplements Enerkem’s equity position in the project, along with the C$23.35 million in financial support from project partners Alberta Innovates-Energy and Environmental Solutions, the City of Edmonton and Alberta Energy.
“We are glad to see our business model and exclusive technology being increasingly backed by equity investors,” said Vincent Chornet, president and CEO of Enerkem. “We are even more encouraged when these investors tell us they want to take part directly in our projects. To us, this is further validation of Enerkem’s sound strategy and strong position in the cellulosic ethanol sector.”