Citroniq Chemicals LLC, a world-scale producer of carbon-negative materials, has closed a $12 Million Series A investment.
Strategic investors were led by a large multi-national energy technology company providing large rotating equipment across oil & gas, energy and industrial customers in over 120 countries, along with a co-investment by Lummus Technology Ventures, and in partnership with the State of Nebraska.
This funding will enable Citroniq to further advance the planning, design, and construction of its 1st plant in the State of Nebraska, according to a press release.
ReSource reported last year that the company was seeking $40m in an equity raise led by Young America Capital as financial advisor.
“Since we announced the partnership between Lummus and Citroniq last year, we have made significant progress toward our shared goals of scaling and commercializing bio-polypropylene production processes,” said Leon de Bruyn, President and Chief Executive Officer, Lummus Technology. “Lummus’ latest investment in Citroniq builds on this progress and strengthens our partnership, working together to lower carbon emissions in the plastics industry.”
Citroniq will be building the world’s largest decarbonization platform that would capture and avoid 2 million metric tons per year of GHG emissions per plant. “We are delighted that our strategic investment partners have embarked on this exciting path with us, championing the decarbonization of the plastics industry which has been traditionally fossil based,” said Mel Badheka, President & Co-Founder of Citroniq.
“The Series A investment is just the first step in our journey towards building multiple biomanufacturing hubs, boosting the Nebraska bioeconomy by converting local ethanol into valuable bioplastics,” said Kelly Knopp, CEO & Co-Founder of Citroniq. “We now have the momentum needed to successfully complete our engineering and make the first plant a reality. The plastics industry is beginning to understand the material impact that a 5X carbon-negative resin can have on their 2030 goals and their long-term net-zero objectives.”
The transaction legal team was led by Doug Getten, Michael Portillo and Leslie Lord from Baker Botts, LLP. Financial advisors for the transaction were Peter Perri and Vince Palmieri of Young America Capital, NY.
