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Propel Fuels Announces $20 Million in New Financing

Propel Fuels, a retailer of clean, renewable fuels, recently announced $20 million in new investment in the company. The financing includes a $12 million Series C equity investment led by Craton Equity Partners and includes existing investors Nth Power and @Ventures, along with $8 million in debt financing. Propel says this funding will help the company expand its network of alternative fuel stations into all major markets across California, supporting the state's emissions reduction goals and stimulating job growth.

"California has the largest fleet of alternative fuel vehicles in America and the market is significantly underserved," said Matt Horton, CEO of Propel. "This funding allows us to build on strong consumer demand and bring alternative fuels to more than 2 million alternative fuel vehicles on California roads today."

Concerns over the price, long‐term supply and environmental impacts of petroleum have led California companies to invest hundreds of millions of dollars into advanced biofuel production technologies. With numerous advanced biofuel production facilities preparing to break ground in the state, Propel expects its fueling infrastructure to be a critical link between California's citizens and the next generation of low carbon fuels. In addition to liquid fuels, Propel's retail platform is extensible to meet demand for future transportation technologies including hydrogen and electric vehicles.

"Propel has the right business model to capitalize not only on the current demand for renewable fuels, but also on future demand for the next generation of fuels," said Tom Soto, Managing Partner at Craton Equity Partners. "Propel is well positioned to help California and other states take advantage of the economic and environmental benefits of renewable fuels."

Recognizing California's commitment to emissions reductions and low carbon fuels, Propel relocated to California in 2009. According to the company, California's leadership in renewable fuel adoption programs has created a positive environment for public‐private partnerships, further supporting Propel's California expansion. Propel expects to play a growing role in helping achieve the state's ambitious emission reduction goals as required by AB32 and California’s Low Carbon Fuel Standard.