Cool Planet raises $19.4M to take total Series D round over $60 Million
Adds international strategic investors; expects to complete first commercial facility in 2014
In Colorado, Cool Planet Energy Systems announced that it had raised $19.4 Million in the second close of a “D round” equity raise, after closing on more than $29.9 Million in June of 2013, bringing the total raised to more than $60 Million, including the remaining commitments from existing investors.
The round added investors from Hong Kong, Singapore, the United Arab Emirates (UAE), and Mexico to a marquee existing investor base, including North Bridge Venture Partners, Shea Ventures, BP, Google Ventures, Energy Technology Ventures (GE, ConocoPhillips, NRG Energy), and the Constellation division of Exelon.
Initial commercial projects: headed for Louisiana
Cool Planet will use a portion of the equity raise to finalize engineering design for the company’s first commercial facility. This work will be supported by leading international engineering firm, URS Corporation, as the company recently announced. The funding will also provide capital to construct Cool Planet’s first commercial plant, which will be located at the Port of Alexandria, Louisiana. The company expects the facility to be in operation before the end of 2014.
Last month, Cool Planet Energy Systems CEO Howard Janzen said that the company will build three bio-refineries in Louisiana with a capital investment of $168 million. The project will consist of modular biomass-to-gasoline refineries in the Port of Alexandria, Natchitoches and a site to be determined. Cool Planet will create 72 new direct jobs, averaging $59,600 per year, plus benefits. Additionally, LED estimates the project will result in 422 new indirect jobs, for a total of 494 new jobs. The company estimates 750 construction jobs will also be created by the project.
Cool Planet will utilize wood waste and forest byproducts to make gasoline at its initial commercial-scale facilities in Louisiana. Each bio-refinery will be capable of producing 10 million gallons of high-octane, low-vapor pressure gasoline for strategic distribution through existing market channels and for blending at Louisiana refineries.
Reaction at Cool Planet
“While equity markets remain closed to most biofuel businesses, investors are seeing a differentiated opportunity in Cool Planet. Our drop-in cellulosic gasoline and biochar technology has global potential,” said Cool Planet CEO Howard Janzen. “A strong proof point for this potential is the impressive group of international investors who have participated in our equity raise, positioning the company for long-term growth globally. “
“We are very pleased to have attracted investors from around the world, which will accelerate the development of our business internationally,” said CFO Barry Rowan. “This funding, combined with the strong ongoing commitments from our current investors, keeps us squarely on our path to commercialization.”
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