Enerkem Inc., a Québec-based cleantech firm specializing in converting waste and biomass into clean fuels and circular chemicals, obtained creditor protection under the Companies’ Creditors Arrangement Act (CCAA) on May 12, 2025. Founded in 2000, Enerkem pioneered the world’s first full-scale waste-to-biofuels facility in Edmonton, Alberta, in 2014. In January 2024, due to liquidity constraints, the company closed this plant and undertook significant cost-cutting measures. Enerkem’s ongoing involvement in a recycling project in Varennes, Québec, operated by Varennes Cellulosic Ethanol LP (VCE), faced financial distress as well, with VCE entering CCAA protection in March 2025 following cost overruns and financing shortfalls. Enerkem also exited a similar project in Spain in 2023 by selling its stake to Repsol Quimica.

Burdened by a high cash burn rate and cumulative operating losses over the past three years, Enerkem currently lists approximately US$432.2 million (about C$591 million) in liabilities. These include US$220.4 million (C$301 million) owed to noteholders such as Repsol, ESC Sustainable Solutions Fund, and Monarch Alternate Capital funds, and US$16.3 million (C$22.3 million) to Fiera Private Debt Fund IV and the Federation of Canadian Municipalities. Under the CCAA proceedings, Enerkem will conduct a stalking horse sale and investment solicitation process (SISP), featuring a credit bid restructuring transaction backed by the noteholders, unless a higher offer materializes. Repsol is providing DIP financing. Legal counsel includes Stikeman Elliott (Enerkem), Osler (monitor Deloitte), Bennett Jones (Repsol), Goodmans (noteholders’ committee), and BLG (Fiera).