Range Fuels expands funding for cellulosic ethanol project

Web exclusive posted May 12, 2008 at 5:27 p.m. CST

Broomfield, Colo.-based cellulosic ethanol producer Range Fuels Inc. announced it has expanded its previously announced Series B funding from $100 million to $166 million after Advanced Equity Inc. and Morgan Stanley joined the financing.

As reported previously by Ethanol Producer Magazine, Range Fuels completed its private funding round worth more than $130 million, which will be used towards the first phase of construction on its 100 MMgy commercial cellulosic ethanol plant near Soperton, Ga., which is scheduled for completion in 2009.

Range Fuels hasn't publicly commented on the exact figure but when contacted, said it is comfortable divulging that it has raised over $100 million, adding "this funding will be used predominantly for operations at our company and to build the first phase of our cellulosic plant in Georgia."

The finance round was led by Passport Capital of San Francisco. Other investors included BlueMountain, Khosla Ventures, Leaf Clean Energy Co. which was advised by EEA Fund Management Ltd. and Shaw Capital, and Pacific Capital Group, with participation by California Employee Retirement System. Advanced Equity Inc. and Morgan Stanley were the placement agents.

Range Fuels has received much capital infusion appeal in its efforts to start-up what could become the nation's first commercial-scale cellulosic ethanol production facility. In addition to this cash flow for capital costs, Range Fuels has also received a $76 million grant from the U.S. DOE and a $6 million grant from the state of Georgia.