WasteFuel Announces $10m investment from bp

i(x) Net Zero PLC

06 July 2023

 

The information contained within this Announcement is deemed by i(x) Net Zero plc to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK law by virtue of the European Union (Withdrawal) Act 2018 ("MAR").

i(x) Net Zero PLC

("i(x) Net Zero" or the "Company")

Portfolio Company WasteFuel Announces $10m investment from bp

i(x) Net Zero PLC (AIM: IX.), the investing company which focuses on the Energy Transition, is pleased to announce that its portfolio company, WasteFuel Global, LLC ("WasteFuel"), has secured a $10m investment from bp, the multi-national energy company. The investment will further assist WasteFuel's plans to develop a global network of plants to convert municipal and agricultural waste into bio-methanol, a biofuel which could play a significant role in decarbonising hard-to-abate sectors like shipping.

bp's $10m investment, leading the Series B investment round, results in a a material uplift in the NAV attributable to the Company's holding in WasteFuel.  Following bp's investment, the unaudited NAV of the Company's equity interest in WasteFuel is $131.69m, a 181% uplift from the last reported audited NAV ($46.91m as at 31 December 2022).  Furthermore, the Company's Portfolio NAV has increased from $63.84m as at 31 December 2022 to $148.62m*.

WasteFuel intends to develop multiple bio-methanol plants around the world in collaboration with local strategic partners including waste companies, with the first project expected to be in Dubai. bp and WasteFuel have entered a memorandum of understanding to offtake the produced bio-methanol and, working together, to help optimize and improve bio-methanol yields and economics.

WasteFuel has a proven track record of working with global partners as it pursues its plans for a global network of bio-methanol plants converted from waste.  In 2022 WasteFuel entered a commercial-scale bio-methanol partnership with A.P. Moller - Maersk, the global container logistics company. WasteFuel also has a partnership with  a leading end-to-end waste management company, to develop the first commercial scale municipal waste-to-renewable methanol plant in the Middle East.

Pär Lindström, Chief Executive Officer of i(x) Net Zero, said: "This is a highly significant milestone for our portfolio company, WasteFuel, which is seeking to make a tangible impact on climate change through the production of sustainable fuels from municipal and agricultural waste. This partnership with bp validates WasteFuel's leading-edge technology and its potential to efficiently produce fuel from waste sources. The investmentwill accelerate the development of WasteFuel's first waste-to-bio-methanol plant, as part of its plans to develop a global network of bio-methanol plants."

Philipp Schoelzel, vice president of Next Generation biofuels in bp, said: "Working with WasteFuel allows bp to offtake bio-methanol and help optimize production which could support decarbonizing shipping. bp is in action to produce more biofuels, aiming to deliver around 100,000 barrels per day by 2030, to help decarbonize transport. Investments like this can contribute to achieving our net zero targets and goals and help our customers to decarbonize too."

Trevor Neilson, Co-founder, Chairman and CEO of WasteFuel added: "This investment from bp ventures is a significant milestone for WasteFuel as it will help scale the production of bio-methanol to decarbonize the shipping sector. As companies who are reliant on shipping work to reduce their greenhouse gas emissions, it is essential that we dramatically expand the availability of these fuels."

* Portfolio NAV is based on audited NAV for all portfolio companies as at 31 December 2022 and the revised unaudited NAV for WasteFuel following the bp investment.

- Ends -

For further information visit https://ixnetzero.com/ or contact:

i(x) Net Zero	Via Buchanan below
Pär Lindström - Chief Executive Officer
Canaccord Genuity Limited Nominated Adviser & Broker	[phone]
Max Hartley
Harry Pardoe
Buchanan
Helen Tarbet	[phone]
Simon Compton	[phone]

Notes to Editors

About i(x) Net Zero PLC [Par to confirm all still up to date]

i(x) Net Zero PLC is an AIM quoted investing company that seeks to provides its shareholders with the opportunity to create long-term capital growth with positive, scalable, measurable and sustainable impact on the environment and on the communities it serves.

In accordance with its belief that the world's biggest problems are also the biggest market opportunities, i(x) Net Zero focuses on two critical areas in which it aims to make a positive impact: (i) Energy Transition and (ii) Sustainability in the Built Environment.

The Company uses a multi-strategy investment approach, providing the companies in which it invests with the expertise and catalytic capital to help them grow. To date, i(x) Net Zero has invested in biofuels, direct air capture (carbon removal), renewable energy, sustainable workforce housing and net zero construction technology.

i(x) Net Zero is a signatory to the UN Principles for Responsible Investing. 

The Company has received the London Stock Exchange's Green Economy Mark.

About bp ventures:

bp ventures was set up more than 10 years ago as bp's corporate venture capital arm. Since then, bp has invested over $1bn in technology companies and is actively managing 40 investments today.

bp ventures makes strategic equity investments in private, high growth businesses accelerating innovation across bp's transition growth engines: renewables, EV charging, convenience, bioenergy and hydrogen. 

For more information visit: bp.com/ventures.

About WasteFuel:

Founded by Trevor Neilson and Alejandro Estrada and launched by energy transition investment company i(x) Net Zero plc (AIM London Stock Exchange: IX.), WasteFuel is a next generation sustainable fuels company using proven technologies to help address the climate emergency and revolutionize mobility. WasteFuel converts municipal and agricultural waste into low-carbon fuels including bio-methanol for shipping.

WasteFuel is working to change the way the world views, values and treats waste - and harnessing its power to fuel the future of mobility.

For more information visit: www.wastefuel.com.

 

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