Nashville, Tennessee based waste gasification firm, Aries Clean Energy, has issued approximately over $46 million in additional investments.
The company explained that $21.4 million of new equity was led by existing investors and an additional $25 million has been secured for equity in future gasification projects from Spring Lane Capital.
According to the firm, which claimed to have developed the world’s largest downdraft gasification plant, the proceeds from the offering will be used to fund project development, retire debt and other general corporate purposes.
Spring Lane Capital is a private equity firm focused on project finance investments for smaller-scale solutions in the energy, water, food and waste industries.
Aries said that the financing marks a significant milestone for the emerging set of municipal and industrial-scale solutions providers in the waste management industry, which has been historically challenged to access affordable financing tailored to the needs of sub-utility scale projects in the industry.
The company plans to use the proceeds from the investment to deploy an immediate pipeline of customer-ready projects using its proprietary waste gasification technology, as well as to accelerate business development in new markets within the U.S, increase efficiencies in current products, and advance growth outside the U.S. borders.
“I am pleased that Spring Lane Capital has recognized our award-winning, patented clean energy technology and wants to help share these solutions with more cities and industries,” said Gregory L. Bafalis, CEO of Aries. “Their model of financing distributed scale solutions is ideal for our business as we look to develop and operate a series of small-to-mid scale plants.”
Aries’ latest project is the Lebanon Gasification Initiative in Lebanon, Tennessee.
At full capacity, this plant annually will keep 8000 tonnes of waste from landfills and eliminate 2500 tonnes of carbon emissions from the air. The syngas converted from waste can generate 1.8 million kWh of electricity per year.
“Aries Clean Energy is poised for growth, with a leading and proven technology, a wide-open market opportunity, and an experienced, high-execution management team,” said Nikhil Garg, General Partner at Spring Lane Capital.
“This financing gives Aries the runway to accelerate the business and deploy their solution at scale while providing strong economic benefits to their municipal and industrial customers,” he added.
“We believe in the long-term social and economic benefits natural resource efficiency brings to everyone, Garg concluded.
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