BioEnergy International, LLC, a science and technology company committed to developing biorefineries to produce fuels and specialty chemicals from renewable resources, announced it has closed $61.6 million in funding.
The investment will fund its three strategic initiatives: generating secure cash flow from its conventional ethanol platform, product diversification through the introduction of novel biocatalysts for the manufacture of green chemicals and biopolymers and the integration of its cellulose technology.
The investment was provided by a team including Plainfield Asset Management, Camulos Capital, Itera Ethanol, LLC and Context Capital Management. In addition to refinancing existing corporate debt, the financing will provide funding for BioEnergy’s projects in Pennsylvania and Louisiana, as well as growth capital for the Company’s expansion of existing R&D efforts and initiatives.
“We have spent a great deal of time focusing on risk management issues and are pleased that we can now launch with the first fully contracted ethanol plant in the marketplace” said Stephen J. Gatto, Chairman and Chief Executive Officer of BioEnergy.
The funding will provide the project equity requirements for BioEnergy’s 108 million gallon per year ethanol project located in Clearfield County, Pennsylvania. BioEnergy is currently finalizing development of the Clearfield project, with necessary permits expected to be received in September. The Company previously received a commitment from Governor Edward G. Rendell and the Commonwealth of Pennsylvania for over $22 million of state investments to support the project, as well as an additional commitment for $5 million for the construction of a cellulosic pilot plant utilizing BioEnergy’s proprietary technology.
Said Panos Ninios, Managing Director of Plainfield Asset Management, “We were drawn to BioEnergy’s strategic vision and unique capabilities in assuming a leadership role in the emerging biorefinery sector.”
In addition to advancing BioEnergy’s ethanol projects, the funding will provide important capital for the Company’s science and technology efforts. BioEnergy has an exclusive research agreement with the University of Florida and Dr. Lonnie Ingram to develop technologies to produce green chemicals and biopolymers from sugars and cellulose, and late last year signed an agreement to license one of its proprietary biocatalysts for the production of D(-) lactic acid to Purac Biochem N.V.
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