Proterra backs Singapore biodiesel player
Specialist food and agriculture investor Proterra Investment Partners has agreed to invest in Aperion Bioenergy, a Singapore-based bioenergy producer that sources used cooking oil for feedstocks.
The size of the investment was not disclosed. Proterra is currently deploying its second Asia fund, which closed on USD 700m in 2015, and the firm tends to maintain a relatively concentrated portfolio and support companies over extended periods.
The deal comes a few weeks after Mitsui Chemicals backed Aperion with a view to securing a stable supply of bio-based hydrocarbons, which are used to make bio-based chemicals and plastics. Seeking to become carbon neutral by 2050, Mitsui is replacing petroleum-derived raw materials with waste or biomass-derived alternatives, though global demand for feedstock is outstripping supply.
Founded in 2007 by Chris Chen and Richard Huang, Aperion has established itself as one of the largest collectors and sellers of used cooking oil in the Southeast Asia and China region, working with households, restaurants, hotels, and food manufacturers. It also uses wastewater from palm oil processing mills and animal fat as feedstock for biofuels.
The company has established a presence in 10 countries and collected more than 500m litres of used cooking oil between 2017 and 2021, offsetting an estimated 1.5m metric tons of carbon emissions.
Between 2020 and 2025, the biofuels industry will grow threefold in Asia, sixfold in the US, and threefold in Europe, according to Greenea, a broker and consultant specialising in waste-based feedstock and biodiesel. Aperion plans to ride this wave by increasing its number of collection points and upgrading existing processing plants to produce higher-specification feedstocks.
“Together with Apeiron, we can help organise and upcycle food waste streams across Asia and in the process support advanced biofuel development globally,” said Tai Lin, a managing partner for Proterra in Asia. “This investment will open up collaboration opportunities for our food and farming portfolio and create some of the positive impacts that everyone is talking about.”
The energy transition imperative has encouraged numerous private equity and venture capital investors to explore alternative fuels, with everything from biofuels to hydrogen on the agenda.
Sizeable deals include Hahn & Company carving out the recycling-enabled biofuels division of Korea’s SK Chemicals for KRW 382.5bn (USD 292m) in 2020 and Hana Financial investing KRW 100bn investment in Vine Enviro, a waste-to-energy (WTE) company set up by Equis Development.
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