Completion of Fundraising
TMO secures £11 million to roll out sustainable cellulosic ethanol technology
4 August 2022
TMO Renewables Ltd, a developer of a new process for converting biomass into fuel ethanol, is pleased to announce that it has completed a round of financing totalling £11 million from a range of blue chip institutional shareholders and highly informed private investors.
The funds will be used as working capital, primarily to support the Company’s entry into the US market. This is the key geographic area of focus for TMO and the Board sees many opportunities in this marketplace for the Company’s unique second generation technology, whether it is retro-fitted, improving existing corn ethanol plant yields by 10% to 15%, or applied to new-build, ‘non-food’ biofuel facilities.
The Board is pleased that the fundraising demonstrates the support of existing shareholders such as Jupiter Asset Management, Noble Group, RAB Capital and many of TMO’s retail investors, as well as new investors Presnow Limited ("Presnow"), Diverso Management ("Diverso"), and Libra Advisors, whose knowledge of the sector and TMO’s markets will have significant benefit to the Company at this stage of its commercialisation.
Presnow has invested a total of £4 million in TMO and offers the Company significant knowledge of the ethanol and agrarian sectors in both the USA and Brazil. The Board is excited about the market opportunities that could result from this investment and partnership.
Diverso, a cleantech private equity fund, contributed £2 million as part of this round. Diverso specialises in renewable and cleantech opportunities in China, and therefore brings to TMO an active channel into the rapidly growing Chinese renewables market. In addition, the Board was pleased to secure investment from Libra Advisors, a significant US investment fund, as this is another important geographic market for the Company.
Hamish Curran, Chief Executive of TMO, commented: "We are delighted to have received this strong support from existing and new shareholders, particularly in such unprecedented market conditions. These funds will allow us to roll out our proven second generation ethanol technology in the US marketplace and beyond. There are significant opportunities in North America for TMO, and we are pleased that this investment will enable us to engage fully those clients for whom we have successfully trialled a wide range of feedstocks – from grasses and wheat straw, to newspaper, municipal waste and distillers’ grains, a by-product of the traditional corn ethanol process.
"We believe that the prospects for the biofuels sector remain strong, and we are greatly encouraged by the new regulatory environment, especially in the USA, as governments support the industry in keeping with their desire for energy independence. Our partnership with Diverso opens up opportunities, previously unavailable to TMO, in the Chinese market where there is a huge appetite and, growing mandates, for renewable fuel.
"The ongoing success of TMO’s process demonstration unit in Surrey, England – which has just reached its first anniversary – is validated further by this vote of confidence from our shareholders, and we are excited about accelerating the Company to the next stage of its development."
CNBC Video: TMO Renewables Develops New Biofuel Process