Editor’s note: After Waste Dive published this story, HomeBiogas and Closed Loop said a press release about the announcement was sent prematurely and details of the transaction are not final. Waste Dive will update the story if further information becomes available.
Closed Loop Partners announced a $25 million agreement with HomeBiogas, a producer of small-scale anaerobic digesters, to deepen their partnership and expand their North American footprint.
The New York-based firm is investing $10 million in HomeBiogas and ordering $15 million worth of units through the end of 2024. The agreement also extends Closed Loop's rights to distribute products from Tel Aviv-based HomeBiogas in North America for five more years, until 2030.
HomeBiogas CEO Oshik Efrati said in a release that the order allows his company to further build out its organizational structure as it looks to expand the business.
"We appreciate Closed Loop’s vote of confidence in the company," Efrati said. "This $25M deal puts us in an excellent position to execute our vision and the company’s business plans in the next few years, along with the global trend of dealing with climate change by adopting innovative technologies to treat organic waste in a sustainable way."
HomeBiogas was founded in 2012 and went public in Israel with a $94 million offering in 2021.
Last year, Efrati said HomeBiogas' North American expansion would be targeting rural households first for residents interested in off-grid sustainable solutions, but over time the company plans to pursue multifamily residences and restaurant chains for integrated commercial solutions. HomeBiogas’ industrial systems can handle up to 1,000 kilograms of food waste per day, according to their website.
The company already operates in more than 100 countries and won a contract with the United Nations in December 2021 to supply its systems for refugee camps in Africa.
HomeBiogas is part of Closed Loop’s Circular Services platform, which includes multiple MRF operators and other types of recycling companies. On March 16, the firm announced that further investment in Circular Services has brought total financial commitments to nearly a billion dollars.