Propel Fuels recently grabbed headlines because it's making algae biofuels commercially available for the first time - people can fill up their tank at several of their "Renewable Fuel" stations.
Now, Propel Fuels has closed $11 million in equity capital and $10 million in debt financing to expand its 29-station network to hundreds in California in the next two years.
Alongside conventional gasoline, Propel's Renewable Fuel stations sell Flex Fuel E85 and biodiesel blends. During this month's pilot of algae biofuel, the biofuel blend costs the same as filling up with conventional gas. Drivers can also offset carbon from their fuel purchases, find rideshare opportunities, tune bicycles, and recycle on the go.
In 2010, Propel received a $10 million grant to build 75 stations in California, but it fell far short of its goals.
The Series D round includes existing investors Nth Power, Craton Equity Partners, and @Ventures and a new backer, Gentry Venture Partners. The Redwood, California, company's debt financing is from CapX Partners.
“We’re witnessing a revolution in transportation, whether it’s innovative new enzymes to create clean fuels, or whole new drivetrains and power systems in the vehicles themselves,” says Thomas Raterman, partner at Gentry Venture and now a Propel board member. “Propel is creating a position as a trusted source of the most advanced fuels on the market today – no matter what type of vehicle you drive. We’re excited to help them succeed.”
This year, Propel was rated as the 17th fastest growing energy company on Inc. Magazine's list of the Fastest Growing Private Companies.
Here's Propel's website: