Synthica Energy, a platform dedicated to the energy transition, has secured an equity investment from Goldman Sachs Asset Management’s Infrastructure Business. This investment marks the beginning of a partnership aimed at expanding the production of renewable natural gas (RNG) through Synthica’s operations across various hubs in the United States.
RNG, also known as biomethane, is anticipated to play a pivotal role in the shift towards cleaner energy sources, particularly in sectors where traditional renewables like wind and solar might not be as feasible. Derived from organic waste such as agricultural, industrial, and household refuse, RNG possesses the same chemical composition as fossil-based natural gas. This similarity allows it to facilitate the decarbonization of challenging sectors like heavy industry and transportation, without necessitating the replacement of existing transmission and distribution systems.
Aside from offering the advantages of conventional natural gas without its carbon emissions, RNG also mitigates the release of methane that would occur during the decomposition of organic waste.
Founded in 2017 and headquartered in Ohio, Synthica focuses on producing RNG via anaerobic digestion using pre-consumer food and beverage waste and other organic byproducts from manufacturing. This approach sidesteps the complications associated with RNG production from post-consumer waste, including inconsistent supply and contamination concerns. As a result, Synthica achieves higher efficiency and consistency in RNG production while also contributing to waste repurposing and greenhouse gas emission reduction.
The infusion of investment will bolster Synthica’s infrastructure projects and expedite facility development in key U.S. markets like Ohio, Texas, Georgia, Kentucky, and Louisiana in the immediate future. The company also has plans to establish facilities in Florida, Illinois, Missouri, New York, and Pennsylvania.
CEO of Synthica, Sam Schutte, expressed enthusiasm about the partnership with Goldman Sachs, foreseeing accelerated project development, improved circular solutions for customers, and an increased supply of RNG to meet the growing market demand.
This recent development highlights Goldman Sachs’ continued interest in biofuels investments. Earlier this year, the firm introduced Verdalia Bioenergy, an investment platform targeting biomethane opportunities in Europe, with a commitment to deploy over €1 billion in the next four years.
Cedric Lucas, Managing Director in Goldman Sachs Asset Management’s Infrastructure Business, emphasized the dual benefits of this sustainable process, anticipating positive outcomes for businesses, municipalities, and utilities in their efforts to repurpose organic waste and reduce carbon footprints.