Range Fuels Inc. announced that it has completed an oversubscribed Series B round of private financing greater than $100 million.
The company will focus the new funds on completing the construction of the first phase of its commercial cellulosic ethanol plant located near the town of Soperton, Georgia, according to a release. The first phase of construction for the Soperton Plant is targeted to produce approximately 20 million gallons of ethanol and mixed alcohols per year and is scheduled for completion in 2009.
The Series B round was led by Passport Capital of San Francisco, California. Other investors include BlueMountain, Khosla Ventures, Leaf Clean Energy Company (advised by EEA Fund Management Ltd and Shaw Capital), and Pacific Capital Group (with participation by California Employee Retirement System (CalPERS)).
"Range Fuels has an enormous market opportunity and is the company closest to commercializing cellulosic ethanol," said Walther Lovato, Portfolio Manager, Passport Capital. "Their technology and feedstock flexibility keeps costs low as they can deploy their plants near feedstock sources and quickly scale their business."
Range Fuels uses a thermo-chemical process, which differs from many competing cellulosic processes which use biochemical technology. The feedstock in Georgia will be sustainably harvested forest trees and waste materials, the company said.
Range Fuels says its process also uses 75% less water than corn ethanol and is classified environmentally as a minor emitter with 60% less emissions compared to corn ethanol.
Range Fuels’ previously announced that it received a $76 million grant from the US Department of Energy and a grant of $6 million from the State of Georgia.
About Range Fuels
Range Fuels Inc. is focused on green energy and the production of cellulosic ethanol. The company does not use food products like corn, but rather uses waste materials and other non food sources. The company’s technology uses wood chips, paper pulp, olive pits, and more, and converts those materials to ethanol. The company’s K2 system uses a two step thermo-chemical conversion process. The company’s business model is to design, build, own and operate its plants.
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