Propel Fuels Up With $21M For Green Gas Stations

Alternative gas station company Propel Fuels has raised $21 million to build out its green gas stations throughout California and the west coast. The company is aiming for around 75 by the end of 2013, though it’s slower growth than the company had planned.

On December 11 the startup announced that its fueled up with $21 million in equity and debt to attempt to raise its number of stations to more than 200 around the U.S. over the coming years.

Propel Fuels also has a couple stations which debuted the first commercially-available algae fuel for consumers. Teaming up with algae fuel maker Solazyme, Propel has been selling algae fuel in a limited run month-long test pilot for regular drivers that is meant to test consumers’ responses to the alternative fuel. Propel’s stations also sell E85 (85 percent ethanol, twenty percent gasoline), biodiesel, and regular gasoline, too.

Propel’s new investment comes from existing investors Nth Power, Craton Equity Partners, and @Ventures, as well as from new investor Gentry Venture Partner. Propel raised a $20 million round back in early 2010. A Propel Fuel spokesperson said that this latest round of funding, plus grants, will enable the company to grow the number of its stations to 75 in California by the end of 2013.

Propel had been trying to grow a bit faster than that, and back in the summer of 2010 it indicated it planned to add 75 new stations in California by the end of 2011. The past couple of years haven’t been exactly easy for cleantech companies to raise funds and expand.

Beyond alternative fuels, Propel Fuels is trying to make an overall better gas station experience. That includes adding in things like ride sharing locations, carbon offsetting options, and recycling locations.

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