GasTechno® is leading the charge in transforming renewable natural gas into high-value, clean fuels through its patented Mini-GTL® technology. As the world shifts towards sustainable energy solutions, GasTechno® has positioned itself as a frontrunner in the energy transition, with a focus on scalable, cost-effective production of methanol, hydrogen, and other liquid chemicals. Recently, the company closed its Series A funding and is making significant strides toward expanding its operations, including the development of America's first "GasTechno® Energy Center."
In this exclusive Q&A, founder Walter Breidenstein shares insights into GasTechno® 's latest developments, the vision behind their new energy center, their ambitious plans for an IPO, and how they aim to revolutionize the renewable energy industry.
Q: Walt, you just closed your Series A in July, congrats! What's next?
Walter Breidenstein: Thanks! Our focus is to manufacture renewable methanol and hydrogen, specifically targeting Class 8 fleet owners as our end customers for the fuel. In May 2022, we acquired a 36-acre industrial site in Northern Michigan with ten buildings, which is now America's first "GasTechno® Energy Center." All our current investments are directed toward this facility, alongside two new methanol plant constructions.
Q: What inspired the vision for this new energy center, and why is now the right time to pursue it?
Walter Breidenstein: It is all about the energy transition worldwide. We need low-cost, clean fuels for trucking fleet owners, who face steep diesel and diesel additive costs. The GasTechno® Energy Centers are focusing on methanol and hydrogen conversions specifically for this sector. We have designed an 8-bay truck conversion facility, with two semi-trucks ready to begin conversions.
Q: That's great; you also have an open round with the Dealmaker crowdfunding platform right now that's closing in September, correct? What are you hoping to accomplish once this Series B round closes?
Walter Breidenstein: This $1.5 million 506c Series B round is aimed solely at covering legal, audit, investment banking, and other transaction-related fees to take us public on the NYSE. We assembled all the cost quotes together from a highly respected and professional IPO advisory team, and the Series B round will fund it. Series C is being planned to follow, raising $10 million, with $5 million specifically allocated for a Reg D 506cf offering, allowing us to build a methanol and hydrogen investor community with Dealmaker acting to qualify subscribers. They have many crowdfunding companies on their platform, as it is a new way to fund small businesses in America since the Jobs Act was passed. It is a great way to finance small companies like GasTechno with big ideas.
Q: You've outlined an aggressive 12-month financing plan for an IPO. What are the key milestones for this project during that period?
Walter Breidenstein: Yes, we're moving fast and planning for the future. Series C will raise $10 million in equity, with half through crowdfunding (minimum $1,100 investments). Series D is $46 million in equity. Subsequently, we will raise a $100 million green bond in the form of debt, followed by an IPO of $400 million primary raise on the NYSE. We have retained Mast Capital Advisors, an investment bank based in Houston, to advise us on the green bond and IPO. Our banker at Mast Capital, Rahul Jasuja, has completed over 25 IPOs and several dozens of bond offerings in the Energy sector and has provided us with a "highly confident" letter of support, along with complete modeling and pricing of the IPO.
Q: What impact will the energy center have on the renewable energy industry?
Walter Breidenstein: It will be a true game changer, in my opinion, but that is biased toward our company as I have spent the past 20 years on this methanol pathway. My track record is extensive in building, operating, and validating these methanol systems. We even finished our first methanol car conversion in Detroit, Michigan, in 2022. These semi-trucks will be the next major step toward showing fleet owners methanol and hydrogen are cool. They are the future, offering lower emissions, cheaper alternatives to diesel, and long-term sustainability.
Q: What message do you want to send to potential investors about the long-term potential of this project?
Walter Breidenstein: We must go public to scale these GasTechno® Energy Centers. Bank loans just won't cut it, so equity markets are our best route. We have put together a great plan to scale this over ten years and beyond. We need scale to keep methanol and hydrogen costs competitive in comparison to fossil-based energy sources. Long term, I am confident we will choose the best financial partners for our vision.
Q: Is there anything you'd like investors or the general public to know about GasTechno®?
Walter Breidenstein: Yes, I want to share with all my small business community that crowdfunding is the way to build the community, shareholder base, and anti-dilution models that support the founders for all their hard work and passion. We are a growing family of more than 100 shareholders now, and we hope to reach 1,000 before we go public next year. It will give us a base community that supports clean and low-cost renewable fuels. I welcome accredited investors to see our website at https://GasTechno.com/invest. The minimum investment is $5,000 for accredited investors, and the offering closes on September 30 unless we extend it. After that, we will transition to the Series C round, with the amount raised so far included in the Series B offering. At that point, we will target investors with a $1,100 minimum through crowd financing and venture capital or private equity investors.
GasTechno® offers scalable solutions that promise to reshape the trucking and transportation industry and beyond. With ambitious plans for growth and a commitment to clean energy, the company is set to make waves in the renewable fuels sector. Investors and stakeholders alike are invited to be part of this transformative journey. To learn more, visit gastechno.com/invest.
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