i(x) Net Zero PLC (AIM:IX) shares spiked up as much as 90% higher in Thursday’s early deals as its investee WasteFuel Global, which is developing bio-methanol from agricultural waste, landed a US$10mln investment from BP PLC (LSE:BP.).
BP backed the early-stage company via a Series B funding round and the injection of funds triggers a “material uplift” in valuation for AIM-quoted i(x) which now sees its stake worth US$131.69mln, up from its last valuation of US$46.91mln at the end of December.
It lifts the value of the entire i(x) portfolio to US$148.62mln from US$63.84mln, the investment company said in a statement.
"This is a highly significant milestone,” said Pär Lindström, i(x) chief executive.
He added: “This partnership with BP validates WasteFuel's leading-edge technology and its potential to efficiently produce fuel from waste sources.
“The investment will accelerate the development of WasteFuel's first waste-to-bio-methanol plant, as part of its plans to develop a global network of bio-methanol plants."
BP’s investment comes as WasteFuel seeks to develop multiple bio-methanol plants around the world in collaboration with local strategic partners.
Meanwhile, BP has entered into an early-stage agreement – a memorandum of understanding – which could lead to an offtake deal for the future supply of bio-methanol and a potential collaboration for the optimisation and improvement of bio-methanol yields and economics.
Philipp Schoelzel, BP vice-president of next-generation biofuels, commented: “Working with WasteFuel allows BP to offtake bio-methanol and help optimize production which could support decarbonizing shipping.
“BP is in action to produce more biofuels, aiming to deliver around 100,000 barrels per day by 2030, to help decarbonize transport.
“Investments like this can contribute to achieving our net zero targets and goals and help our customers to decarbonize too."
Previously, in 2022, WasteFuel inked a partnership with shipping firm A.P. Moller–Maersk and it also has partnerships with an end-to-end waste management company for a project in the Middle East.
In London, i(x) Net Zero shares were up 12.5p or 89.29% higher, changing hands at 26.5p, valuing the investment company at just over £22.7mln.