Propel gets USD11m grant for biofuel refuelling stations

Thu Sep 2 2010, 09:26 AM

Propel Fuels has secured a USD10.9m grant from the US Department of Energy (DoE) and the California Energy Commission to develop biofuel refuelling stations throughout the state. The Low Carbon Fuel Infrastructure Investment Initiative will see Propel build and operate 75 retail stations across California. The grant will be matched by USD16m in investment from the firm, which says the project could create more than 450 jobs in the state and displace 39m gallons of petroleum.

Propel has begun construction of the station locations, with the network of 75 fuelling stations scheduled for completion by the end of next year. The stations will enable drivers to fill their vehicles with biodiesel and E85, which comprises 85% ethanol and 15% petrol. The first three stations are open in Fremont, Oakland and south San Jose. Additional sites are planned for downtown San Jose, north San Jose, Palo Alto, Redwood City, Livermore and Concord.

In February, Propel raised USD20m in funding to support the expansion of its fuelling stations. The funding included USD12m in equity funding from Craton Equity Partners, Nth Power and @Ventures, and USD8m in debt financing.