Whisky biofuel pioneers receive extra funding

Celtic Renewables, which claims to be the world’s first company capable of powering cars using biofuel created from whisky waste, has received an extra £500,000 in investment.

The company announced the new investment worth £250,000 from the Scottish Investment Bank, with a further £250,000 equity stake acquired by an existing private investor

The company announced the new investment worth £250,000 from the Scottish Investment Bank, with a further £250,000 equity stake acquired by an existing private investor, at a reception in Edinburgh – taking its valuation to £10 million.

Professor Martin Tangney, founder and president of Celtic Renewables, said: “This demonstration of faith by the Scottish Investment Bank and our private investor takes Celtic Renewables to a new level and brings our share value to £10million.

“We have successfully taken a defunct technology and adapted it to current market conditions, attracting the investment and partners required to scale-up to industrial production and prove that this works at scale.”

Celtic Renewables unveiled the first samples of biobutanol earlier last month created using draff, the sugar rich kernels of barley which are soaked in water to facilitate the fermentation process necessary for whisky production, and pot ale, the coppery, yeasty liquid left over following distillation.

The company uses a process first developed in the UK a century ago, called Acetone-Butanol-Ethanol (ABE) fermentation, and is the first of its kind to use the millions of tonnes of annual whisky production residues as raw material.

Celtic Renewables estimates the groundbreaking new process could be worth £100 million to the UK economy, and hopes to build its first demonstration facility at the Grangemouth petrochemical plant by 2018.

Scottish energy minister, Fergus Ewing, said:  “I am pleased that the Scottish Investment Bank has given support to Celtic Renewables, a company who are producing such an exciting and innovative product.

“This helps ensure a future where we see less emissions from fossil fuel driven cars and instead have reduced emissions from vehicles powered from the by-products of Scotland’s world-renowned and successful whisky industry.”

The company recently received an investment of €1.5 million, including more than £800,000 from the UK government.