RKCA facilitated the Infrastructure Business within Goldman Sachs Asset Management’s (“Goldman Sachs”) successful equity investment in Synthica Energy, (“Synthica”), an energy transition platform aimed to design, build, own, and operate large-scale, contracted anaerobic digestion facilities to convert pre-consumer organic waste into renewable natural gas (RNG). RKCA served as the exclusive financial advisor to Synthica’s founders and shareholders.
Financial terms of the deal were not disclosed.
The new capital will help grow Synthica’s infrastructure projects and accelerate the development of its facilities in key target markets across the country, including Ohio, Texas, Georgia, Kentucky, and Louisiana in the near term. Over the coming years, Synthica also plans to develop clean energy facilities in Florida, Illinois, Missouri, New York, and Pennsylvania.
“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.”
Founded in 2017, Synthica aims to produce RNG from pre-consumer food and beverage waste and other organic manufacturing byproducts. 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.
Synthica supports a green energy transition by aiming to provide a circular waste management solution at convenient facilities located a short drive away from city centers and repurpose pre-consumer organic waste, which might otherwise be disposed of in a landfill and contribute to greenhouse gas emissions. 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 decarbonization targets and sustainability goals, including with respect to recycling and landfill diversion.