In the United States (US), Fulcrum BioEnergy, Inc., a waste-to-fuels developer, has announced the completion of interim financing to fund its second waste-to-fuels project, culminating in the issuance by the Indiana Finance Authority (IFA) of US$375 million of Environmental Improvement Revenue Bonds (Bonds) through Fulcrum’s wholly-owned subsidiary Fulcrum Centerpoint, LLC (Centerpoint).
According to a statement, proceeds from the offering will be held in escrow with the Bonds subject to a mandatory tender for purchase on November 15, 2022. Fulcrum expects to refinance the bonds on or before November 15, 2022. The transaction was led by Morgan Stanley and Goldman Sachs & Co. LLC.
We are pleased to take this next step in accelerating our growth trajectory with this financing. Fulcrum was awarded $500 million in volume cap by the Indiana Finance Authority to help fund a portion of the Centerpoint BioFuels Plant, the Company’s second waste to zero-carbon fuels project. This interim financing provides the Company with ample time in 2022 to finalize engineering and obtain the necessary permits and authorizations to launch our next zero-carbon project, said Eric Pryor, President, and CEO of Fulcrum BioEnergy.
The Bonds are an obligation solely of Centerpoint and are not a debt, liability, or obligation of the Indiana Finance Authority or the State of Indiana, however, as a result of the volume cap award, the Bonds will bear interest at a tax-exempt rate.
The Centerpoint BioFuels Plant will be located in Gary, Indiana (IN), with waste feedstock sourced from the greater Chicago and northern Indiana areas.
Fulcrum has secured the biorefinery site, completed initial engineering, and has submitted the air permit for the project, which will have the capacity to produce approximately 33 million (US) gallons (≈ 125 million litres) of drop-in transportation fuel annually. Construction is currently targeted to begin in 2023.
In July this year, the company completed its Sierra BioFuels Plant in Reno, Nevada (NV), dubbed as the world’s first commercial-scale plant converting prepared municipal solid waste (MSW) into low-cost, zero-carbon transportation fuels.
In the UK, the Fulcrum NorthPoint project is being developed by its subsidiary Fulcrum BioEnergy Ltd. Last month it signed an offtake agreement with Manchester Airports Group plc for a direct feed of sustainable aviation fuel (SAF) to Manchester Airport will become the first in the UK to have a direct feed of Sustainable Aviation Fuel (SAF) has recently
