Synthica Energy Announces Equity Investment from the Infrastructure Business within Goldman Sachs Asset Management

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Synthica Energy, LLC has closed a large equity investment from Goldman Sachs Asset Management to scale operations and produce RNG from organic waste. The investment will help grow Synthica's infrastructure projects and accelerate facility development in key target markets.

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• Synthica Energy, LLC has closed a large equity investment from Goldman Sachs Asset Management to scale operations and produce RNG from organic waste. The investment will help grow Synthica's infrastructure projects and accelerate facility development in key target markets.

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Partnership and capital infusion will enable company to scale operations to produce RNG from pre-consumer food and beverage waste and other organic manufacturing byproducts

CINCINNATI, Aug. 7, 2023 /PRNewswire/ -- Synthica Energy, LLC, an energy transition platform aimed to design, build, own, and operate large-scale, contracted anaerobic digestion facilities to convert pre-consumer organic waste into renewable natural gas (RNG), announced today that it has closed on a large equity investment from the Infrastructure Business within Goldman Sachs Asset Management (Goldman Sachs). Financial terms of the deal were not disclosed.

The new capital will help grow Synthica's infrastructure projects and accelerate the development of its facilities in key target markets across the country, including Ohio, Texas, Georgia, Kentucky, and Louisiana in the near term. Over the coming years, Synthica also plans to develop clean energy facilities in Florida, Illinois, Missouri, New York, and Pennsylvania.

"Synthica's mission is to provide a critical service for hard-to-process organic waste streams, divert these materials away from landfills and other non-sustainable disposal outlets, and ultimately reduce carbon and methane emissions," said Sam Schutte, CEO of Synthica. "We are excited about partnering with Goldman Sachs since it will enable us to accelerate our project development pipeline, enhance our circular solutions for our customers, and supply RNG to meet the growing market demand."

Founded in 2017, Synthica aims to produce RNG from pre-consumer food and beverage waste and other organic manufacturing byproducts. Distinct from many existing RNG developers, who largely focus on dairy products from farms or mixed solid waste from landfills, Synthica's infrastructure business model focuses on processing pre-consumer organic waste.

Synthica supports a green energy transition by aiming to provide a circular waste management solution at convenient facilities located a short drive away from city centers and repurpose pre-consumer organic waste, which might otherwise be disposed of in a landfill and contribute to greenhouse gas emissions. Through anaerobic digestion, Synthica plans to convert this organic waste into valuable RNG that can be used for a variety of drop-in fuel purposes in place of fossil fuels and help customers or offtakers achieve their decarbonization targets and sustainability goals, including with respect to recycling and landfill diversion.

The company's focus on pre-consumer organic waste gives Synthica access to a large and stable supply of input material from major food, beverage, and industrial manufacturers. The company enters into contracts to accept customers' waste as feedstock, providing a low-cost, proximate, sustainable alternative to landfill disposal. Unlike post-consumer waste, which can vary in supply and contamination levels, pre-consumer waste streams enable greater efficiency and consistency in the production of RNG.

Synthica will continue to be led by its co-founders, Sam Schutte and Grant Gibson. Mark Weidman, a recognized leader in the waste-to-energy sector, and former CEO of Wheelabrator Technologies Inc., will serve as executive chairman.

"With this investment, we are aiming to take waste out of a one-way system and recycle it to generate renewable energy," said Cedric Lucas, a Managing Director in the Infrastructure Business within Goldman Sachs Asset Management. "Similar to our Verdalia investment in Europe focused on biomethane, we believe this sustainable process can provide dual benefits, helping businesses and municipalities beneficially reuse their organic waste and supplying the country's utilities with RNG, critical for reducing their carbon footprints. We are thrilled about the opportunity to partner with Sam and Grant and leverage the capabilities and relationships of our firm to bring sustainable infrastructure solutions to cities across the U.S."

Demand for RNG and other renewable resources in the U.S. is expected to grow rapidly for the foreseeable future, especially as utilities and manufacturers continue their efforts to achieve emissions reductions by decarbonizing their heating and power generation. Synthica plans to sell its RNG production under offtake contracts with gas utilities, energy majors, and industrial purchasers.

Synthica recently broke ground on its first facility in Ohio. The facility is expected to divert a significant amount of organic waste from local landfills and sewers each year, removing CO2 and methane emissions from the atmosphere.

About Synthica Energy

Synthica Energy is an anaerobic digestion development company bringing organics-to-energy facilities to underserved markets across the U.S. The company's mission is to facilitate the diversion of pre-consumer organic waste away from landfills, abate the associated methane emissions, and convert the organic material into renewable natural gas (RNG). In doing so, Synthica aims to provide industrial manufacturers with a greener outlet for their organic waste and North American utilities with reliable access to RNG. The company focuses on "urban-friendly digestion," incorporating multiple layers of odor control technology to minimize local impact. As a result, Synthica expects its facilities to seamlessly coexist in communities producing high amounts of organic waste. To learn more, visit www.synthica.com.

About the Goldman Sachs Asset Management Infrastructure Business

Bringing together traditional and alternative investments, Goldman Sachs Asset Management provides clients around the world with a dedicated partnership and focus on long-term performance. As the primary investing area within Goldman Sachs (NYSE: GS), we deliver investment and advisory services for the world's leading institutions, financial advisors, and individuals, drawing from our deeply connected global network and tailored expert insights, across every region and market – overseeing more than $2.7 trillion in assets under supervision worldwide as of June 30, 2023. Driven by a passion for our clients' performance, we seek to build long-term relationships based on conviction, sustainable outcomes, and shared success over time. Goldman Sachs Asset Management invests in the full spectrum of alternatives, including private equity, growth equity, private credit, real estate, and infrastructure. Established in 2006, the Infrastructure Business within Goldman Sachs Asset Management has consistently navigated the evolving infrastructure asset class, having invested approximately $15 billion in infrastructure assets across market cycles since its inception. We partner with experienced operators and management teams across multiple sectors, including energy transition, transportation & logistics, digital infrastructure, and essential services. Follow us on LinkedIn.

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SOURCE Synthica Energy

FAQ

What is Synthica Energy's mission?

Synthica Energy aims to provide a circular waste management solution and produce RNG from organic waste to reduce carbon and methane emissions.

Who has invested in Synthica Energy?

Goldman Sachs Asset Management has made a large equity investment in Synthica Energy.

What are Synthica Energy's target markets?

Synthica Energy plans to develop facilities in Ohio, Texas, Georgia, Kentucky, and Louisiana in the near term, and in Florida, Illinois, Missouri, New York, and Pennsylvania in the coming years.

What is RNG?

RNG stands for renewable natural gas, which is produced from organic waste and can be used as a drop-in fuel in place of fossil fuels.

Who will Synthica Energy sell its RNG to?

Synthica Energy plans to sell its RNG production under offtake contracts with gas utilities, energy majors, and industrial purchasers.