Goldman Sachs invests in Synthica Energy

Synthica Energy, an energy transition platform that designs, builds, owns and operates large-scale, contracted anaerobic digestion facilities to convert pre-consumer organic waste into renewable natural gas (RNG), has closed on a large equity investment from the Infrastructure Business within Goldman Sachs Asset Management (Goldman Sachs).
The new capital will help grow Synthica’s infrastructure projects and accelerate the development of its facilities in key target markets across the US, including Ohio, Texas, Georgia, Kentucky and Louisiana in the near term.
Over the coming years, Synthica said it plans to develop clean energy facilities in Florida, Illinois, Missouri, New York and Pennsylvania.
Synthica plans to sell its RNG production under offtake contracts with gas utilities, energy majors, and industrial purchasers.
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.
This focus provides 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, said Synthica.
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 decarbonisation targets and sustainability goals, including with respect to recycling and landfill diversion.
Synthica will continue to be led by its co-founders, Sam Schutte and Grant Gibson. Mark Weidman, a recognised leader in the waste-to-energy sector, and former CEO of Wheelabrator Technologies Inc., will serve as executive chairman.
“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.”
“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 US.”