Waste-to-biofuels and chemicals company Enerkem has filed a registration statement on Form F-1 with the US Securities and Exchange Commission and a preliminary prospectus with securities regulatory authorities in each of the provinces and territories of Canada, relating to a proposed initial public offering of its common shares in the United States and in Canada.
Goldman, Sachs & Co., Credit Suisse Securities and BMO Capital Markets will act as joint bookrunners for the IPO, which the company expects to raise up to $125 million.
Enerkem’s technology converts municipal solid waste (MSW) and other heterogeneous waste feedstocks, consisting of mixed textiles, plastics, fibers, wood and various other forms of waste, into a pure, chemical-grade synthesis gas, or syngas. This syngas is then converted into biofuels and chemicals through well-established catalytic reactions.
Enerkem says that its low-severity gasification process significantly reduces operating and capital costs due to lower temperature, pressure and energy requirements to break down heterogeneous waste feedstock. Enerkem is still a development stage company and has not yet generated any revenue from the sale of our products.
While its primary focus is the commercial production of cellulosic ethanol, it also intends to expand to multiple products beyond ethanol by taking advantage of its ability to produce a pure, chemical-grade syngas that serves as a key intermediate for the production of renewable chemicals.