EcoSystem Corporation (OTCBB: ESYM) announced the closing of its $76 Million equity financing with five investment funds.
EcoSystem said it will use the investment proceeds to acquire distressed ethanol production facilities, to acquire other strategically-compatible assets, and to develop and integrate EcoSystem’s Cellulosic Corn™ technologies into planned ethanol production facilities. The funds will be held in a restricted EcoSystem account and be available for use according to the use of proceeds schedule and other conditions specified in the agreements.
EcoSystem’s goal is to achieve an annualized renewable fuel production rate of 500 million gallons per year within three years, and to demonstrate market leadership by using its technologies to refine more fuel out of corn for less cost on reduced energy consumption and carbon emitted.
EcoSystem’s view is that the established first generation corn ethanol infrastructure is the only practical pathway in North America to cost-effectively increase the production and use of carbon-neutral biofuels on globally-meaningful scales. To accomplish this in a competitive and environmentally superior way, the installed base of first generation corn ethanol facilities will need to evolve to achieve significantly improved production efficiencies.
EcoSystem intends to become a leading low cost and low carbon producer of renewable fuels by leveraging its technology portfolio to acquire and upgrade corn ethanol facilities into increased financial and environmental sustainability while facilitating the convergence of cellulosic and corn ethanol.
EcoSystem’s portfolio of technologies are designed to achieve the following key goals:
- Increase the net energy balance of biofuel derived from corn
- Increase profitability of corn ethanol
- Decrease amount of petroleum burned to make corn derived biofuel
- Increase the nutritional content of corn ethanol co-products
- Reduce, reuse and recycle the carbon emissions of corn ethanol production
- Diversify the biomass mix accepted and produced by traditional corn ethanol facilities
- Decrease the commodity and financial risk profile of corn ethanol
- Standardize corn-friendly cellulosic technology by building on the existing corn ethanol complex
- Enhance the competitive positioning of corn ethanol in the domestic and global markets.
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