US-based renewable fuels producer Fulcrum BioEnergy has secured $175m in financing to construct the Sierra BioFuels Plant.
The plant will feature the company’s proprietary municipal-solid-waste to ethanol process and will convert the feedstock into low-carbon fuels plant.
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The funding includes a US Department of Agriculture’s conditional loan of $105m along with future bank financing and private equity capital from Fulcrum.
Serving as Fulcrum’s first foray into conversion of MSW, the plant recently had a design upgraded by the company’s engineering and technology teams.
Enhancements to the existing technology for the company are expected to reduce production costs to less than $0.75 a gallon from the prior announced $1.25 a gallon.
Fulcrum president and CEO James Macias commented that these developments reinforce the company’s foothold as a low-cost producer of low-carbon transportation fuels.
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By GlobalDataFinancing secured from the contracts would also fund future projects of the company.
"The current IPO market environment remains challenging, especially for development stage companies like Fulcrum.
"Because of this we have secured commitments from alternative capital resources to advance our MSW to renewable fuel program and we have withdrawn our registration statement," Macias said.
