Fulcrum BioEnergy secures $175m financing for Sierra BioFuels plant
US-based bio fuel company Fulcrum BioEnergy has secured $175m in financing for the construction of a municipal solid waste (MSW) to ethanol plant for Sierra BioFuels.
The plant will also generate other low-carbon fuels while the company is expected to employ the secured funds for other future projects.
Commenting on the funding Fulcrum president and chief executive officer E. James Macias remarked that company has secured commitments from alternative capital resources to advance their renewable fuel generation program.
Macias also pointed that the initial public offering environment had become a challenge for development stage companies like them.
An engineering and technology team from the company have already enhanced the design of Sierra while making improvements to its proprietary MSW-to-ethanol process.
These improvements are expected to reduce the cost to produce renewable fuel to less than $0.75 per gallon, down from about $1.25 per gallon.
"These enhancements underscore our confidence in the attractive economics of our business model while further advancing Fulcrum as the industry's low-cost producer of low-carbon transportation fuels," added Macias.