Thanks to a recent $100 million investment, you might soon reduce CO2 by driving a car, and increase crop productivity by using a carbon-negative soil.
Cool Planet Energy Systems, a company producing green biofuels and ag-products, has raised $100 million in a Series D financing. UBS and Goldman Sachs led the private placement, and Cool Planet said that all previous strategic and venture investors added to their investment in this round. Previous investors also include Google Ventures, BP, Energy Technology Ventures (GE, ConocoPhillips and NRG Energy) and the Constellation division of Exelon.
“We’re delighted that the D round financing was so successful,” said John Stuart, CEO of Asset Group at Concord Energy Pte Ltd in Singapore, a strategic investor of Cool Planet. “We’re excited to help bring Cool Planet’s advanced products to the international arena and believe the company has the potential to change the calculus in energy, agriculture and water management.”
Founded in 2008, Cool Planet creates environmentally friendly fuels that act exactly like fossil fuels without the negative side effects. Cool Planet’s ag claim-to-fame is its product, CoolTerra™, which actually reverses the consequences of CO2 build-up from fossil fuels while increasing crop productivity and plant health.
Based on a business model based on building small-scale facilities located close to biomass fuel sources, the company’s objective is to provide low-capital costs with high reward, making it a scalable option for the future.
“We have continued to invest in each round of funding as we have seen the technology advance to commercial readiness,” said Carmichael Roberts, Partner at North Bridge Venture Partners and Cool Planet board member. “The company has an exceptionally strong and experienced management team, and is poised to deliver real and meaningful new solutions to the energy, food and water industries.”
With the funding, the company aims to bring several biofuels and CoolTerra to a large commercial scale. While Cool Planet has started selling CoolTerra™ for use in commercial agriculture, recently signing an agreement with Organic Waste Solutions (OWS) for water treatment and remediation, the company is now looking forward to the completion of its first biofuel production plant in Alexandria, Louisiana. The plant is designed to produce 10 million gallons of high-octane renewable fuel and gas blendstocks, as well as CoolTerra™ biochar products per year.
“We are very pleased with the strong interest and support from investors that enabled us to reach our $100 million funding objective,” said Howard Janzen, CEO of Cool Planet. “A significant number of new international investors with both a financial and strategic interest came into the financing.”
While Cool Planet seems like it’s pulling in the green now, they just might be helping the rest of us to pull in the green in the near future, too.