Singapore-based Apeiron bags $37m to expand biofuel network

Image credit: Timmy Loen

Apeiron Bioenergy, a Singapore-based biofuel startup, has raised S$50 million (US$37 million) through the issuance of a five-year senior unsecured green bond.

The company said the fundraise marks the first bioenergy-focused SGD bond issuance in Asia. The deal was oversubscribed after Apeiron said it received interest from institutional and strategic investors.

HSBC acted as the lead manager of the bond issuance.

Funding details

• Funding amount: US$37,000,000
• Stage: Debt
• Source

Apeiron collects various types of food and agricultural waste – including used cooking oil, tallow, and palm oil mill effluent – and converts them into biodiesel.

The proceeds from the bond issuance will be used for general working capital, as well as capital expenditures to expand Apeiron Bioenergy’s network of collection points and treatment facilities for used cooking oil.

The company aims to capitalize on growing global demand for renewable diesel, such as sustainable aviation fuel, using its clean waste-based feedstock derived from used cooking oil. According to Research and Markets, global renewable diesel capacity is also expected to reach 14.63 million tons in 2024, representing a compound annual growth rate of 21.33% from 2020.

Used cooking oil is a key feedstock for Apeiron’s biofuel production, offering significant greenhouse gas emissions savings. Leveraging its extensive supplier network in Asia, Apeiron plans to consolidate waste-based biofuel feedstocks in the region, positioning itself as a hub for the mass consolidation of such feedstocks.

“This transaction highlights our commitment to support growth-stage companies that can facilitate the transition to a carbon-sustainable economy through increasing the availability of low-carbon alternative biofuels,” said Sean Henderson, co-head of debt capital markets at HSBC’s Asia-Pacific operations.

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Correction (June 26, 6:30 pm): This article has been updated to correct information regarding the investment round.

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