Alternative fuels ‘gas’ stations to spread across California

• Propel Fuels gets $20 Million funding round to expand network

• ‘Allows us to build on strong consumer demand’

The number of locations in California selling alternative fuels such as E85 ethanol is expected to expand as Propel Inc. uses proceeds from a $20 million funding round to expand its Sacramento-based network.

The financing includes a $12 million Series C equity investment led by Craton Equity Partners and includes existing investors Nth Power and @Ventures, along with $8 million in debt financing.

The funding will allow Propel to expand its network of alternative fuel stations into all major markets across California, it says.

"California has the largest fleet of alternative fuel vehicles in America and the market is significantly underserved," says Matt Horton, CEO of Propel. "This funding allows us to build on strong consumer demand and bring alternative fuels to more than two million alternative fuel vehicles on California roads today."

Propel builds, owns and operates a network of what it calls “Clean Fuel Points” -- self-serve filling stations selling low carbon fuels.

E85 fuel is comprised of 85 percent ethanol and 15 percent gasoline. It is made from fermented starch and sugars, and is an alternative to conventional petroleum gasoline.

The company also offers biodiesel fuels at some of its stations. It is available in blends from B5 (5 percent biodiesel) to B99 (99.9 percent biodiesel) depending on location.

source: centralvalleybusinesstimes