Chemrec completes $20 million C-round to fund commercialisation of its biorefinery technology
Chemrec, the world leader in black liquor gasification, has completed a $20 million funding round. The investment was led by Environmental Technologies Fund (ETF), with support from existing investors, Vantage Point Venture Partners and Volvo Technology Transfer. Swedish company Nykomb AB, which helped develop the Chemrec technology, remains an investor in the Company. The investment is to be used to support Chemrec in commercialising its ground-breaking technology.
Chemrec’s technology enables pulp & paper mills to become “biorefineries”, opening up a whole new range of high-value revenue streams and increasing overall profitability. Typical pulp & paper mills produce thousands of tons a day of a liquid biomass called black liquor. Currently this by-product is burned in steam boilers with low energy efficiency for production of steam and electricity. Sweden-based Chemrec has developed a proprietary, highly efficient gasification technology that enables the conversion of black liquor into renewable motor fuels, biomaterials, or electricity. The global potential of this is equivalent to over 45 billion litres a year of gasoline - 2% of global fuel demand. This would imply an annual reduction in fossil CO2 emission of more than 100 million tonnes.
Jonas Rudberg, CEO of Chemrec, said, “Our gasification technology is already proven with two plants in operation and we are currently working with leading pulp & paper firms in the US and Sweden to develop the first industrial scale 2nd generation plants. There is no comparable technology in the market and we have a great opportunity to position Chemrec as the leader in pulp & paper mill based biorefineries. We are very pleased to have ETF as a new investor, and to welcome Henrik Olsén of ETF to the board.”
Henrik Olsén, Partner of ETF, added, “Chemrec enables the pulp & paper industry to also become a “biorefining industry”. The technology can easily be integrated with existing facilities and hence represents a fast and cost-effective path towards the large-scale production of 2nd generation biofuels. The company has a strong management team, enjoys great customer interest as well as industry and government support in both the US and Sweden, and is poised for significant growth. We have known Chemrec for many years and are pleased to now be part of this exciting transformation of an industry.”
Bernie Bulkin, Chemrec Chairman & Venture Partner at Vantage Point, added,
“Chemrec has made great progress in the past two years since the initial investment by Vantage Point and Volvo. The Company has seen strong interest from customers, who have recognized the potential of Chemrec’s well developed and extensively patented technology to produce low carbon fuels, while offering a step change in the revenue and returns on capital at a pulp and paper mill. This new investment in the Company is a continued vote of confidence in its future.”