Biofuels Company Raises $30 MillionFriday, June 7, 2013
Biofuels startup Cool Planet Energy Systems Inc. has raised almost $30 million to build its first production facility.
The Camarillo company converts non-food biomass, such as wood chips, algae and corn cobs, into gasoline. It was founded by entrepreneur Mike Cheiky in 2008 and has the backing of high-profile investors, including General Electric Co., Google Ventures and BP plc.
The $29.9 million debt securities sale was reported to the Securities and Exchange Commission on Thursday. The filing lists 35 investors in the debt, but did not disclose any names or individual investments.
In April, it was disclosed the company was considering moving its operation to Colorado after the Colorado economic Development Commission agreed to offer Cool Planet $3.1 million in job-growth based tax rebates.
Cool Planet claims that its production process actually reduces carbon contained in the biomass while still making a fuel as rich in energy as gasoline derived from crude oil.