Propel Fuels to expand biofuel retail chain, raises $21m equity

Alternative fuels retailer Propel Fuels has secured fresh equity capital of $21m from existing and new investors.

Pursuant to the transaction, the company closed the initial phase of its Series D round of funding, securing $11m from existing investors Nth Power, Craton Equity Partners, and @Ventures and a new investor, Gentry Venture Partners.

Propel has also received $10m as debt financing from CapX Partners.

The funds will be employed for the development of a 200-outlet network offering sustainable, domestically produced fuels to American customers.

The company intends to unveil the proposed stations in new and existing markets by 2015.

Propel CEO Matt Horton said that the equity funding represents a strong endorsement for the company’s vision.

"This new funding, combined with grant funding from the State of California, will enable us to accelerate the build out of our alternative fuel stations across state, offering consumers true choice and a better experience at the pump," Horton added.

Gentry Partner Thomas Raterman remarked that the transportation market is witnessing a revolution in the form of fuel producing enzymes or new drivetrains and power systems in the vehicles.

"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."

 

Renewable fuel stations, owned by Propel currently dot the California and Washington states, retailing fuels such as Flex Fuel E85 and biodiesel blends, in addition to conventional gasoline.