A collection of investors is putting up more than $16 million for an equity stake in Visalia-based Edeniq to support the company’s technology for improved conversion of plant cellulose into sugars used in production of ethanol and other chemicals.
Edeniq announced the investments Tuesday from I2BF Global Ventures, one of its existing investors, as well as Draper Fisher Jurvetson, Angeleno Group, Flint Hills Resources Renewables, The Westly Group, Cyrus Capital and Nimes Capital. Edeniq owns and operates a pilot plant in Visalia that is capable of converting two tons of fibrous plant material including corn stover and other high-cellulose materials into low-cost sugars using the company’s patented technology.
The latest investment will be used for technology designed to increase ethanol yields at existing production plants by 3% to 6% by improving the conversion of starch and cellulosic corn kernel fiber into fuel.
In addition to its Visalia plant, Edeniq is partnering with Brazilian ethanol producer Usina Vale to build a 20-ton-per-day demonstration plant to convert the fibrous leftovers from sugarcane juice extraction into cellulosic sugar for ethanol. It also has a joint development agreement with Global Bio-chem to build a plant in China’s Jiln province capable of producing 50,000 metric tons of sugar from corn stover.