U.S. Based VC Firm True North Acquires Synata Bio
US-based venture capital (VC) firm True North Venture Partners (TNVP) has acquired Synata Bio in India. The company has made a move relying on the government’s target for increasing ethanol blending with petrol to reduce carbon emissions and reducing the dependence on oil imports. Post the deal the company aims to provide much cheaper ethanol production from coal, said its founder Michael Ahearn.
The company is looking for local partners and is ready to invest a million of dollars to offer low-cost ethanol. The government’s target is to achieve a 10% blending of bioethanol in petrol by 2022, which will rise to 20% by 2030. True North after acquiring Synata Bio would go for ethanol production from syngas compared with traditional methods. Syngas is synthesized from the gasification of coal. The company has signed agreements with Coal India and GAIL, to utilize coal to produce ethanol. In the long run, the company aims to make India an export hub for ethanol.