i(x) Net Zero (IX.), an investor focused on the energy transition, has announced that portfolio company WasteFuel has secured a $10m investment from BP to support the rollout of bio-methanol plants around the world.
WasteFuel’s approach is to use proven, scalable technologies to turn municipal and agricultural waste into low carbons, including green methanol, which it sees as key to decarbonising highly polluting industries such as shipping.
According to estimates by the International Maritime Organization (IMO), the shipping industry is responsible for approximately 3% of worldwide greenhouse gas emissions, and without decarbonisation efforts that could reach 10% to the total global emissions by the year 2050.
WasteFuel’s plan is to develop waste-to-fuel plants with local strategic partners such as waste companies, which at commercial scale will be able to produce green methanol that can deliver as much as 90% CO2 reduction compared to traditional fuels.
The company has already signed commercial agreements with container shipping giant AP Moller-Maersk, and a full-service waste management company to develop a waste—to-renewable methanol plant in the Middle East. The company will build its first project in Dubai, while the agreement with BP will see the oil & gas giant offtake the produced bio-methanol as well as working with WasteFuel to optimise production.
From i(x)’s point of view, BP’s investment via a series B round has resulted in a material uplift to its net asset value, lifting its equity interest in WasteFuel by 181% to $131.69m. i(x)’s overall portfolio is now valued at $148.6m.
Other holdings include Sustainable Living Innovations and MultiGreen Properties, which are focused on delivering affordable and sustainable housing in the US, and Context Labs, an ESG data company that has been described as “Palantir for Climate.”
i(x)’s shares jumped nearly 90% on the news of BP’s investment, reflecting the uplift in NAV but still leaving them trading at a significant discount to the value of the portfolio, which looks well-positioned for growth as Net Zero initiatives accelerate around the world.