Edeniq secures $5M in growth equity; 27 plants in cellulosic ethanol pipeline
20 June 2017
Edeniq, Inc., a cellulosic technology company, has secured commitments for $5 million in additional equity to support existing customer workload, rapidly grow the pipeline, and roll out technology enhancements. Edeniq has raised more than $12 million over the past 12 months.
Edeniq’s Pathway Technology is a proprietary, integrated platform to produce qualified cellulosic ethanol in existing corn ethanol plants. The platform combines Edeniq’s Cellunator with an enzyme cocktail to break down corn kernel fiber in the slurry, releasing cellulosic sugars into the fermentation process. Corn kernels contain about 10% cellulosic fiber that currently remains unconverted in a typical ethanol plant. Converting the corn fiber at these facilities is the first step and the fastest path to migrate toward cellulosic ethanol production in the US, Edeniq says.
Over the coming year, Edeniq expects to more than double average customer cellulosic ethanol production through plant optimization and technology enhancements that are being introduced to customers as early as the third quarter of 2017. While customers are currently averaging just over 1% cellulosic ethanol and a 2% lift in total ethanol production, the best-performing plants have achieved rates of more than 2% cellulosic ethanol and a 3% lift in total ethanol production.
The company’s customer pipeline has reached 27 plants, four of which are registered with the Environmental Protection Agency (EPA) for cellulosic ethanol D3 RIN generation. The remainder have submitted applications for D3 RIN production to the EPA, or are in the trial validation process, which is the first step in the registration process.
Edeniq’s customer plants that have registered with the EPA for cellulosic co-production represent approximately 400 million gallons of total ethanol production and have already generated well over $1 million in D3 RIN credits, less than halfway through the calendar year. A 120 million gallon per year corn ethanol plant can increase its revenue by up to $10 million or more through the integration of Edeniq’s Pathway Technology, with no capital investment.
Edeniq said that its investors have been supportive as the company enters its next phase of growth. The company’s largest existing investors, including Flint Hills Resources, Angeleno Group, I2BF Global Ventures, Trinity Capital Investment, and Cyrus Capital are participating in the latest round.