Prometheus Energy, Maker of Liquid Natural Gas from Waste, Raises $10M from Shell Oil

7/1/09Follow @gthuang

Redmond, WA-based Prometheus Energy has closed a $10 million financing from Netherlands-based Kenda Capital, which manages the Shell Technology Ventures Fund that’s part of the Dutch oil giant. A second tranche of financing, worth an additional $10 million, will be part of the deal if Prometheus meets certain milestones.

Chief executive Kirt Montague co-founded Prometheus in 2003 with the idea of converting waste gases from landfills into liquid natural gas for clean-burning fuel. After raising more than $20 million in venture funding, the company went public on London’s Alternative Investment Market (AIM) in 2006, but was de-listed in 2008.

Last September, Prometheus was bought by Black River Asset Management, a private equity firm based in Minnetonka, MN and San Mateo, CA. Black River used the placeholder name “Heracles Energy” for the company when it acquired its assets. (Which is why Prometheus Energy’s SEC filing for the deal is under the name Heracles Energy—but the company’s operating name is still Prometheus Energy.)

With the new investment, Prometheus Energy is part-owned by Shell, the world’s largest liquid natural gas producer.

Gregory T. Huang is Xconomy's Deputy Editor, National IT Editor, and the Editor of Xconomy Boston. You can e-mail him at gthuang@xconomy.com or call him at 617-252-7323. Follow @gthuang

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