Qteros Closes $22M in Funding, Partners with Praj

Qteros announced today a strategic partnership to accelerate commercialization efforts for industrial-scale cellulosic ethanol production with Praj Industries. The agreement will capitalize on Qteros’ CBP platform and Praj’s research capabilities as well as their technology, process design, engineering and construction expertise. The goal of the partnership is to deliver fully integrated ethanol engineering design packages at a low cost of production using a broad variety of non-food based feedstocks.

“Our partnership with Praj represents a transformational initiative for Qteros,” said John A. McCarthy, Jr., President and Chief Executive Officer of Qteros. “We and Praj share close strategic and philosophical alignment about the worldwide opportunities for large-scale cellulosic ethanol production and believe that commercial success can only be achieved with low-cost, highly scalable solutions made possible through creative and best-in-class partnerships such as that crafted between our two companies.”

McCarthy continued, “Praj and Qteros bring together highly complementary skill sets and core competencies which we expect will catalyze our ability to develop the industry’s low-cost solution – both from an operating and capital perspective – for large-scale cellulosic ethanol production. Achieving our combined objective will then provide the industry with a much-needed accelerant for worldwide growth and will also enable our two companies to establish leadership roles in this rapidly evolving global market. We look forward to making our shared vision with Praj a commercial reality within the next 18-24 months.”

Pramod Chaudhari, Founder and Executive Chairman of Praj Industries and Chairman of Praj Group added, “An optimized and streamlined consolidated bioprocessing platform offers the potential to provide important production cost efficiencies and economic returns to global ethanol producers. Praj has achieved significant milestones in second generation, cellulosic ethanol technology development. We have also evaluated the complete market landscape for cellulosic ethanol conversion technologies and we believe Qteros’ CBP platform offers the most advanced technology solution to enable the lowest cost production of cellulosic ethanol across a broad array of important non-food based feedstocks.

“We believe this partnership will enhance the results of the developmental breakthroughs achieved by Praj Matrix, the Research and Development (R&D) division of Praj, which has worked with virtually all types of cellulosic biomass at its pilot plant. Building on its experience of installing ethanol plants in over 50 countries, Praj will bring an integrated approach to the partnership in the second generation bioethanol space,” concluded Chaudhari.

Also this week, Qteros closed the initial tranche in its Series C financing totaling $22 million. The funds will be used to accelerate the company’s development and commercialization plans.

McCarthy said of the accomplishment, “I’m pleased to have completed this first phase of financing for the Company which represents broad participation from both existing and new investors. As we continue to accelerate our commercial plans, which now include our recently announced strategic partnership with Praj Industries, I would expect to continue discussions with a select group of strategic and financial investors who have expressed strong interest in supporting our efforts.”

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