The Swedish Cleantech company, REAC Fuel, which is developing a new method of extracting biofuel, has raised USD 4.5 million in expansion capital through a new issue. The investors are the oil company BP, VantagePoint and Sustainable Technologies Fund.
The capital injection will be used to perfect the technology, which entrepreneur Anders Carlius and research scientist Rune Ekman have been developing since 2001. The technology makes it possible to produce fuels, such as petrol, diesel and paraffin, from renewable biomass. There is also the exciting potential to produce chemicals and sugars from biomass. The process is highly cost competitive and can be used in smaller production plants than at present.

"We are delighted with our new investors, who together represent the industrial, financial and cleantech sectors. With the backing of BP, VantagePoint and Sustainable Technologies Fund, we are not gaining capital alone, but also access to knowledge and a vital network for refining and commercialising our technology", says Anders Carlius, CEO of REAC Fuel.

The issue is the second stage in a financing round, which began last spring with the oil giant, BP, now joining the companies who have invested in REAC Fuel. In total, BP, VantagePoint and Sustainable Technologies with current investors Allba Invest and Jensen Invest have invested USD 6 million in REAC Fuel during...