45 deals, 37 companies; deal size jumps 7 percent and Q2 2015 is 15% up over 2014 and 138 percent up over Q1.
Here’s the complete skinny on who got what.
In Florida, The Digest reports that 37 advanced bioeconomy ventures raised $1.328 billion in new capital in Q3 2014 through Q2 2015 for company development — and pilot, demonstration and commercial-scale projects. This compares to $1.262 billion for the Q2 2014-Q1 2014 period, a gain of 5.2 percent.
For the most recent quarter, the industry raised $496.6 million, up 15.5 percent over Q2 2014.
The industry raised $412.36M in Q3 2014, $211.1M in Q4, and $234.1M in Q1 2015.
Notable transactions in the period include the $158M IPO for Green Plains Partners and the $68.6M IPO for Arcadia BioSciences, the crop trait company. Zymergen raised $44 million in June, Elevance raised $40 million in April, Siluria raised $36M in May and BioAmber raised $35M in May also, among other highlight transactions.
Average deal size was $38.2 million, compared to $35.8 million in the same period last year, a gain of 7 percent.
The capital raising activity
Here’s the deal detail, as tracked at biofuelsdigest.com.
Green Plains Partners – $158M June
Fulcrum BioEnergy – $30M June
Zymergen – $44M June
Methes Energies – 1.3M June
Arcadia Biosciences – $65.6M May
Joule Unlimited – $40M May
Gevo – $17.2M May
BioAmber – $35.1M May
Siluria Biotechnologies – $36.2M May
Godavari Biorefineries – $14M May
Sweetwater Energy – $10M April
Red Rock Biofuels – $5M April (Digest estimate)
Elevance Renewable Sciences – $40.2M April
TOTAL — $496.6
Edeniq – $16M Jan
Green Biologics – $76M Jan
Calysta – $10M Jan
Gevo – $6.18M Jan
Amyris – $21.7M Jan
Coskata – $2.34M Feb
Algenol – $65M Mar
Renmatix – $10M Mar (estimate)
Revolution Fuels – $0.98M Mar
TOTAL – $208.2M Q1 2015
Aemetis – $19M Oct
LanzaTech– $60M Dec
Abengoa – $116M Dec
Greenbelt Resources – $0.5M Dec
Algae.Tec – $2.0M Dec
Cobalt – $0.9M Dec
Ensyn – $12.7M Dec
TOTAL – $211.1M Q4 2014
Celtic Renewables – $2M July
Chromatin – $12.5M July
BioAmber – $33.6M July
Amyris – $10.8M Aug
Gevo – $16.8M Aug
Siluria – $30M Aug
Fulcrum – $75M April (estimate)
NexSteppe – $22M Aug
Agrisoma – $8M Sep
Liquid Light – $15M Sep
SGB – $11M Sep
Emerald Biofuels – $70M Sep
Red Rock Bio – $70M Sep
Pure Biofuels – $5M Sep (estimate)
Metabolix – $25M – Sep
Coskata – $5.66M – Sep
TOTAL – $412.36M Q3 2014
Deals of note: Q3 2014 through Q2 2015
In June, Methes Energies announced that it has entered into agreements with certain institutional investors for a registered direct placement of approximately $1,250,000 of common stock at a price of $0.5435 per share.
In June, United Airlines announced a $30 million direct investment in advanced biofuels developer Fulcrum BioEnergy, obtained an option to invest in five future commercial-scale aviation biofuels plants, and signed offtake agreements for up 90 million gallons of biofuels per year. The offtake contracts are worth an estimated $1.58 billion over the 10-year offtake span, based on the current jet fuel price of $1.76 per gallon, according to Digest calculations.
In June, from California came the news that Zymergen, founded in 2013, is emerging out of stealth and has completed a Series A investment round of $44 million. Data Collective led the Series A, with participation from AME Cloud Ventures (Jerry Yang), Draper Fisher Jurvetson, HVF (Max Levchin), Eric Schmidt’s Innovation Endeavors, Obvious Ventures, True Ventures and Two Sigma Ventures.
In June, Green Plains Partners announced the closing of its initial public offering of 11,500,000 common units representing limited partner interests at $15.00 per common unit. The number of common units issued at closing included 1,500,000 common units that were issued pursuant to the full exercise of the underwriters’ option to purchase additional common units. Net proceeds from the offering, after fees, were approximately $157.9 million.
In May, Gevo announced that it had priced its underwritten public offering of common stock units, and agreed to sell 4,300,000 common stock units consisting of one share of common stock and one-tenth of a Series C warrant to purchase one share of common stock at a public offering price of $4.00 per common stock unit. The gross proceeds to Gevo from this offering are expected to be approximately $17.2 million not including any future proceeds from the exercise of the warrants.
In May, BioAmber announced that it has priced an underwritten registered offering of 3,900,000 shares of its common stock at a price of $9.00 per share, and granted the underwriters in the offering a 30-day option to purchase up to an additional 585,000 shares of its common stock. The gross proceeds to the Company will be $35.1 million.
In May, Godavari Biorefineries raised more than $14 million to boost ethanol production from its current 70 million liters annually while also adding specialty chemical production capacity. Funds will also go towards R&D. The capital injection was sourced from PE fund Mandala Capital who were impressed by the company’s evolution from a traditional sugarcane business to an innovative biorefinery.
In May, Arcadia Biosciences raised $65.6 million in an IPO, which sold 8.2 million shares at $8. The original target for the company when it announced its IPO estimates in April was 7.15 million shares in the $13-$15 price range. The company is an agricultural biotechnology trait development company with a portfolio of late-stage crop productivity and product quality traits addressing multiple crops that supply the global food and feed markets.
In May, the remarkable journey of Joule Unlimited towards commercial-scale continued to add exciting chapters with the news that the company closed on $40 million in private equity and venture debt financing, supporting the company’s growth towards commercialization. The round was led by existing investors, including Flagship Ventures, and brings the company’s total to $200 million raised to date.
In May, Siluria raised $36.2 million as reported in a REG D filing.
In April, Sweetwater Energy announced it had closed on a $10 million bridge loan. The loan closed as Sweetwater said that it is now opening its Series B investor round to begin construction of a first commercial facility.
In April, Elevance Renewable Sciences raised $40.2 million as reported in a REG D filing.
In January, Edeniq announced it had raised more than $16 million in equity. Edeniq is a leading provider of technology solutions for biofuel production, developing next generation cellulosic technologies. Edeniq uses combined mechanical and biological processes for maximum efficiency and lowest cost.
In January, Green Biologics announced the closing of an internal follow-on equity round of $42 million co-led by Swire Pacific Limited and Sofinnova Partners. Existing investors Capricorn Venture Partners, Oxford Capital Partners, Morningside Technology Partners and ConvergInce Holdings also participated in the round. In addition to the $42 million internal equity round, an additional $34 million in funding was raised predominantly in debt financing from Tennenbaum Capital Partners, along with equity and debt investment rolled over by existing members of Central MN Ethanol Co-op LLC in Central MN Renewables, a U.S. affiliate of GBL. This $76 million financing follows GBL’s previous equity round of $25 million in December 2013, bringing GBL’s total fund raising to just over $100 million since late 2013.
In January, Calysta announced a Series B financing of $10 million. The round saw financing led by Walden Riverwood Ventures and Aqua-Spark, venture firms from the US and the Netherlands, respectively. Nicholas Brathwaite, Walden Riverwood Ventures and Mike Velings, Aqua-Spark, will join the Calysta Board of Directors. Calysta intends to use the Series B investment to advance development of high value nutritional products for fish and livestock as well as traditional chemical products.
In January, Gevo raised $6.18M in a share offering.
In January, Amyris raised $21.7M in a share offering.
In February, Coskata raised $2.399M in a Reg D offering.
In February, Algenol, a pioneer in turning CO2 emissions into fuels, announced that it has closed on a new $25 million investment from BioFields, a Mexican business group devoted to the development of renewable and clean energy projects. This new investment follows a previous investment of $40 million from BioFields in 2014 — in all, BioFields has invested $65M in Algenol.
In March, Total New Energies made an undisclosed investment in Renmatix (Digest estimated $10M), has signed a joint development agreement, and is taking aboard seat. Under the agreement, Renmatix and Total will utilize Renmatix’ s proprietary Plantrose process with specific feedstocks to extract sugar for use in production of biobased products of interest to Total. In concert with the investment and R&D projects, Total also joins the Renmatix Board of Directors.
In March, Revolution Fuels raised $983,332 through the sale of equity and securities for its mobile waste oil to biodiesel production facilities. The trucks pick up oil from restaurants and other oil users, produce biodiesel, and then either return it to the oil provider or sells it on their behalf. The company raised $2 million last year, short of its $2.95 million goal.
In October, Aemetis announced $19 million in EB-5 program funds have been received into escrow from foreign investors, representing more than 50% of the maximum of $36 million to be raised in the offering. A total of 47 qualified investors at $500,000 per investor have subscribed for $23.5 million in the offering.
In December, the New Zealand Superannuation Fund has made a US$60 million equity investment in leading gas fermentation company LanzaTech. The LanzaTech investment is one of a series of ‘expansion capital’ investments made by the NZ Super Fund in recent years, providing capital to privately-owned, early-stage companies that are seeking to grow, but are not yet ready to list on the public markets. While only around 1% of the overall NZ Super Fund is invested in expansion capital, Gormly says it is appropriate that it is part of the mix. “The Fund is well diversified and expansion capital’s risk/return profile is a good match for growth-oriented investors with a long time horizon.”
In December, the Brazilian National Bank for Economic and Social Development approved $223.38 in financing for four sugarcane projects. The largest announced financing is for Abengoa Bioenergy SA Agribusiness, which will receive $116.8M to implement its second-generation ethanol plant. The new project will be integrated with the Usina São Luiz first-generation ethanol plant in Pirassununga, in São Paulo state. The project will result in the fourth 2G ethanol plant in Brazil (after the first two from GranBio, and a new plant just commissioned by Raizen). The plant will have a nominal capacity of 64 million liters per year (16.93 million gallons). With this new investment, the capacity 2G ethanol production in Brazil will reach almost 200 million liters per year, BNDES said.
In December, Greenbelt Resources announced it has successfully achieved its goal of raising $550,000 from individual qualified accredited investors. The investments were offered in the form of either restricted common stock or unsecured interest bearing convertible debentures, with substantially all of the proceeds directed to common stock purchases.
In December, Algae.Tec announced a further subscription agreement with Reliance Industrial Investments and Holdings Limited (RIIHL), its largest partner, to raise A$2.4 million. Algae.Tec has assigned an immediate agreement to raise A$1.4 million via the issue of 20 million shares at A$0.07 per share
In December, Cobalt Technologies raised $898,000 in a reg D offering.
In December, Ensyn raised $12.749M in a reg D offering.
In July, Celtic Renewables, the Edinburgh-based biofuel company, signed an agreement with Europe’s foremost biotechnology pilot facility to undergo next stage testing of its process to turn whisky by-products into biofuel that can power current vehicles.
The partnership, which will allow the company to develop its technology at Bio Base Europe Pilot Plant (BBEPP) in Ghent, has been made possible by second round funding worth £1.2million ($2M), including more than £800,000 from the UK Government, to help meet its ambition of growing a new £100 million-a-year industry in the UK.
In July, Chromatin closed a three-year, $12.5 million credit facility with The PrivateBank. The credit facility represents Chromatin’s first financing with a commercial lender and provides capital to support the company’s rapidly expanding sorghum seed business. Chromatin has also raised over $70 million in equity financing.
In July, BioAmber priced a 2.8M share offering at $12.00 per share, and raised $33.6M. The company granted the underwriters in the offering a 30-day option to purchase up to an additional 420,000 shares of its common stock.
In August, Amyris raised $10.8M in a share offering.
In August, Gevo raised $16.8M in a share offering.
In August, Siluria Technologies received a strategic investment from Saudi Aramco Energy Ventures (SAEV), the venture investment subsidiary of Saudi Aramco. The total raise for this initial close of Siluria’s Series D financing was $30 million, and included additional investments by all of the major existing investors in Siluria. To date, Siluria has raised just under $100 million since its inception, and we’re expecting that total to reach north of $120 million with a completed Series D financing by year end of $50 million, or perhaps slightly higher.
In August, Cathay Pacific Airways announced that it is the first airline investor in Fulcrum BioEnergy, Inc., a US-based sustainable biofuel developer, as part of the airline’s biofuel strategy and to help it achieve a target of carbon-neutral growth from 2020. The airline has made a strategic equity investment in Fulcrum, which is a world pioneer in the development and commercialisation of converting municipal solid waste into sustainable aviation fuel or “biojet fuel.” Cathay Pacific also has an option for further investment. Cathay Pacific has also negotiated a long-term supply agreement with Fulcrum for an initial 375 million US gallons of sustainable aviation fuel over 10 years (representing on an annual basis approximately 2% of the airline’s current fuel consumption) that meets all the airline’s technical requirements and specifications. The Digest estimated the investment at $5 million.
In September, NexSteppe announced that it has raised $22M in its third round of funding. New investors Total Energy Ventures and ELFH Holding GmbH, a vehicle of the Berninghausen family in Germany, a serial founder and investor in cleantech, the wood industry and real estate, join existing investors Braemar Energy Ventures, CYM Ventures, DuPont Ventures and others.
In September, Agrisoma Biosciences announced the first closing of its Series A financing round, expected to total $8 million through 2014. The funding round was led by Cycle Capital Management and included participation of BDC Venture Capital, one of Agrisoma’s current equity investors.
In September, Liquid Light announced that it has closed a $15 million Series B financing. New investors include Sustainable Conversion Ventures, which focuses on renewable fuels and chemicals investments. Existing investors VantagePoint Capital Partners, BP Ventures, Chrysalix Energy Venture Capital, and Osage University Partners also participated in this round. The financing was completed at a significant increase in company valuation.
In September, SGB raised $11 million in venture funding as the company prepares to sell renewable jatropha. Investors included Thomas McNerney & Partners, Finistere Ventures and Flint Hills Resources, a wholly owned subsidiary of Koch Industries. The company used genetic technology to determine which plants had the most promising traits, then bred them, said Miguel Motta, SGB’s president and chief operating officer.
In September, the Department of Defense awarded $210 million under the Defense Production Act to Emerald Biofuels, Fulcrum BioEnergy and Red Rock Bio towards the construction of biorefineries that produce cost-competitive, drop-in military biofuels. Under the grants, the companies will build biorefineries to produce military spec fuel that is expected to cost the US military, on a weighted average, less than $3.50 per gallon — or cost competitive with petroleum-based fuels, with availability expected as soon as 2016, and have a 50 percent of greater reduction of emissions compared to conventional fuels. The biorefineries, once complete, will have a combined capacity for producing 100 million gallons of military-spec jet fuel and marine diesel. Based on previous announcements by the Navy, the Digest estimates that the capital is split evenly between the projects.
In September, BP announced an equity investment of an undisclosed amount in Pure Biofuels del Peru. Based in Lima, Pure Biofuels is a leader in the Peruvian refined fuels and distribution services markets. Pure Biofuels currently has over 1,000,000 barrels of liquid fuels storage at the Port of Callao, the largest port on the Pacific Coast of South America. The Company markets and distributes liquid fuels and biofuels in both the local and regional markets and also owns and operates a state-of-the-art biodiesel refinery co-located with the storage and dispatch terminal in Callao. The Digest estimated the investment at $5 million.
In September, Metabolix raised $25.0M in a reg D offering.
In September, Coskata raised $5.656M in a reg D offering.
Verdezyne – $48M April
Cool Planet – $100M April
Pacific Ethanol– $28M April
Rivertop Renewables– $26M April
Methes Energies – $5M May
Avantium – $50M June
Amyris – $4M April
Gevo – $25.9M May
REG – $125M June
Cobalt – $2.9M April
Coskata – $5.2M April
KiOR – $10M May, June
TOTAL – $430.0M Q2 2014
KiOR – $25M March
Solazyme — $202M March
LanzaTech – $60M March
Ceres — $20M March
Genomatica – $6.8M March
Mascoma — $2.0M March
Rennovia – $25M February
Renewable Energy Group – $26.2M February
Chromatin — $36M January
Amyris — $34M January
TOTAL – $447.0M Q1 2014
Amyris — $51.8M October
Coskata – $3.3M December
Gevo — $25M – December
Green Biologics — $25M December
Cobalt Technologies – $4.1M December
Z-Trim – $1.4M December
Ennovor — $12M November
Verdezyne – $6.0M November
TOTAL – $128.6M Q4 2013
KiOR – $70M July, August, September
Heliae — $28.4M July
Coskata – $3.0M August
Intrexon – $160M August
Lyxia — $1.6M August
Amyris – $60M August
Triton Algae — $5M September
CoolPlanet – $19.4M September
Fermentalg — $16.4M September
TOTAL – $363.8M Q3 2013
AgBiome – $14.5M April
Ostara – $13M April
KiOR – $30M April, May, June
Cobalt – $23.2M April
Coskata – $4.5M May
Genomatica – $20M – Versalis JV, April
Camson Bio Technologies – $10M May
BioAmber – $80M May
Enerkem – $50M June
CoolPlanet – $29.9M June
Amyris – $10M June
TOTAL – $285.1M Q2 2013