Ohio-based Synthica Energy, a renewable fuels and energy company focused on the development of anaerobic digestion (biogas) facilities in the Midwest, announced that it has raised a large equity funding. The amount was not disclosed.
The investment came from the Infrastructure Business within Goldman Sachs Asset Management (GSAM).
Everything you need to know about GSAM
GSAM is an investment firm that offers a blend of traditional and alternative investments, focusing on long-term performance and partnerships. As a division of Goldman Sachs, GSAM provides investment and advisory services to institutions, financial advisors, and individuals, managing over $2.7T in assets.
GSAM’s Infrastructure Business was established in 2006 and has invested around $15B in infrastructure assets across market cycles. The division collaborates with experienced operators and management teams in sectors such as energy transition, transportation & logistics, digital infrastructure, and essential services.
Cedric Lucas, MD in the Infrastructure Business within GSAM says, “With this investment, we are aiming to take waste out of a one-way system and recycle it to generate renewable energy.”
“Similar to our Verdalia investment in Europe focused on biomethane, we believe this sustainable process can provide dual benefits, helping businesses and municipalities beneficially reuse their organic waste and supplying the country’s utilities with RNG, critical for reducing their carbon footprints.”
“We are thrilled about the opportunity to partner with Sam and Grant (co-founders of Synthica) and leverage the capabilities and relationships of our firm to bring sustainable infrastructure solutions to cities across the US,” adds Lucas.
Renewable energy semiconductor manufacturing
Founded in 2017, Synthica aims to produce Renewable Natural Gas (RNG) from pre-consumer organic waste and manufacturing byproducts. Unlike other RNG developers, they prioritise processing pre-consumer waste rather than traditional sources like farm or landfill waste.
Synthica’s infrastructure business model centers on anaerobic digestion to convert organic waste into valuable RNG. By doing so, they support a green energy transition, provide a circular waste management solution, and help customers achieve their decarbonisation and sustainability goals.
This approach contributes to reducing greenhouse gas emissions and promoting a cleaner energy ecosystem.
Synthica’s co-founders, Sam Schutte and Grant Gibson, will continue leading the company. Mark Weidman, a former CEO of Wheelabrator Technologies Inc., will serve as the executive chairman.
The company predicts a significant rise in demand for RNG and renewable resources in the US due to emission reduction efforts in heating and power generation. The company plans to meet this demand by selling its RNG production through offtake contracts with gas utilities, energy majors, and industrial purchasers.
Capital utilisation
Synthica Energy says it will use the funds to support its infrastructure projects and facility development in key markets such as Ohio, Texas, Georgia, Kentucky, and Louisiana.
The company recently began building its first facility in Ohio and says it will “break ground” on its new Renewable Natural Gas (RNG) facility in St. Bernard, Ohio, on Thursday, July 27. Synthica claims to have already secured long-term contracts and will divert nearly 200,000 tons of waste from local landfills annually when completed.
Additionally, the company plans to establish clean energy facilities in Florida, Illinois, Missouri, New York, and Pennsylvania in the coming years. This expansion aims to promote sustainable energy solutions and reduce carbon emissions across the US.
Sam Schutte, CEO of Synthica says, “Synthica’s mission is to provide a critical service for hard-to-process organic waste streams, divert these materials away from landfills and other non-sustainable disposal outlets, and ultimately reduce carbon and methane emissions.”
“We are excited about partnering with Goldman Sachs since it will enable us to accelerate our project development pipeline, enhance our circular solutions for our customers, and supply RNG to meet the growing market demand,” adds Schutte.
