Partnership and capital infusion will enable
company to scale operations to produce RNG from
pre-consumer food and beverage waste and other organic
manufacturing byproducts
CINCINNATI, Aug. 7, 2023
/PRNewswire/ -- Synthica Energy, LLC, an energy transition platform
aimed to design, build, own, and operate large-scale, contracted
anaerobic digestion facilities to convert pre-consumer organic
waste into renewable natural gas (RNG), announced today that it has
closed on a large equity investment from the Infrastructure
Business within Goldman Sachs Asset Management (Goldman Sachs).
Financial terms of the deal were not disclosed.
The new capital will help grow Synthica's infrastructure
projects and accelerate the development of its facilities in key
target markets across the country, including Ohio, Texas,
Georgia, Kentucky, and Louisiana in the near term. Over the coming
years, Synthica also plans to develop clean energy facilities in
Florida, Illinois, Missouri, New
York, and Pennsylvania.
"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," said Sam Schutte, CEO of Synthica. "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."
Founded in 2017, Synthica aims to produce RNG from pre-consumer
food and beverage waste and other organic manufacturing byproducts.
Distinct from many existing RNG developers, who largely focus on
dairy products from farms or mixed solid waste from landfills,
Synthica's infrastructure business model focuses on processing
pre-consumer organic waste.
Synthica supports a green energy transition by aiming to provide
a circular waste management solution at convenient facilities
located a short drive away from city centers and repurpose
pre-consumer organic waste, which might otherwise be disposed of in
a landfill and contribute to greenhouse gas emissions. Through
anaerobic digestion, Synthica plans to convert this organic waste
into valuable RNG that can be used for a variety of drop-in fuel
purposes in place of fossil fuels and help customers or offtakers
achieve their decarbonization targets and sustainability goals,
including with respect to recycling and landfill diversion.
The company's focus on pre-consumer organic waste
gives Synthica access to a large and stable supply of input
material from major food, beverage, and industrial manufacturers.
The company enters into contracts to accept customers' waste as
feedstock, providing a low-cost, proximate, sustainable alternative
to landfill disposal. Unlike post-consumer waste, which can vary in
supply and contamination levels, pre-consumer waste streams enable
greater efficiency and consistency in the production of RNG.
Synthica will continue to be led by its co-founders,
Sam Schutte and Grant Gibson. Mark
Weidman, a recognized leader in the waste-to-energy sector,
and former CEO of Wheelabrator Technologies Inc., will serve as
executive chairman.
"With this investment, we are aiming to take waste out of a
one-way system and recycle it to generate renewable energy," said
Cedric Lucas, a Managing Director in
the Infrastructure Business within Goldman Sachs Asset
Management. "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 and leverage the capabilities and
relationships of our firm to bring sustainable infrastructure
solutions to cities across the U.S."
Demand for RNG and other renewable resources in the U.S. is
expected to grow rapidly for the foreseeable future, especially as
utilities and manufacturers continue their efforts to achieve
emissions reductions by decarbonizing their heating and power
generation. Synthica plans to sell its RNG production under offtake
contracts with gas utilities, energy majors, and industrial
purchasers.
Synthica recently broke ground on its first facility in
Ohio. The facility is expected to
divert a significant amount of organic waste from local landfills
and sewers each year, removing CO2 and methane emissions from the
atmosphere.
About Synthica Energy
Synthica Energy is an anaerobic digestion development company
bringing organics-to-energy facilities to underserved markets
across the U.S. The company's mission is to facilitate the
diversion of pre-consumer organic waste away from landfills, abate
the associated methane emissions, and convert the organic material
into renewable natural gas (RNG). In doing so, Synthica aims to
provide industrial manufacturers with a greener outlet for their
organic waste and North American utilities with reliable access to
RNG. The company focuses on "urban-friendly digestion,"
incorporating multiple layers of odor control technology to
minimize local impact. As a result, Synthica expects its facilities
to seamlessly coexist in communities producing high amounts of
organic waste. To learn more, visit www.synthica.com.
About the Goldman Sachs Asset Management Infrastructure
Business
Bringing together traditional and alternative
investments, Goldman Sachs Asset Management provides clients
around the world with a dedicated partnership and focus on
long-term performance. As the primary investing area within Goldman
Sachs (NYSE: GS), we deliver investment and advisory services for
the world's leading institutions, financial advisors, and
individuals, drawing from our deeply connected global network and
tailored expert insights, across every region and market –
overseeing more than $2.7 trillion in
assets under supervision worldwide as of June 30, 2023. Driven by a passion for our
clients' performance, we seek to build long-term relationships
based on conviction, sustainable outcomes, and shared success over
time. Goldman Sachs Asset Management invests in the full spectrum
of alternatives, including private equity, growth equity, private
credit, real estate, and infrastructure. Established in 2006, the
Infrastructure Business within Goldman Sachs Asset Management has
consistently navigated the evolving infrastructure asset class,
having invested approximately $15
billion in infrastructure assets across market cycles since
its inception. We partner with experienced operators and management
teams across multiple sectors, including energy transition,
transportation & logistics, digital infrastructure, and
essential services. Follow us on LinkedIn.
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SOURCE Synthica Energy