A California company developed a revolutionary closed-loop system to efficiently and cost-effectively produce sustainable energy with virtually no pollutants. This patented renewable bioenergy system incorporates an advanced gasification technology with a commercially proven operating history outside the United States. The company required funding support for a $7 million, one megawatt renewable biomass-to-electricity project in Arizona – the company’s first commercial biomass (wood char) power plant in the United States.
Approach
LNE Group identified and qualified the U.S. Department of Agriculture (USDA) Rural Energy for America Program (REAP) loan guarantee program. REAP was directly aligned with the client’s funding needs. However, the client required a commercial lender in Arizona. Using its network of financial partners, LNE Group attracted the interest of a commercial lender that agreed to participate. With the lender committed to the project, LNE Group developed a REAP application seeking a $4 million loan guarantee from the USDA.
Result
The client secured a $4 million loan guarantee award. The power plant will begin operation by the end of 2016 and is expected to create 40 new jobs (30 during construction and 10 full-time); thereby supporting environmentally responsible economic growth in Arizona. The Arizona Department of Environmental Quality (ADEQ) recently issued an air quality permit and lauded the project’s plan to use wood from forest thinning operations to help foster healthy forests, reduce excess wood that could fuel forest fires, and promote community safety.
ExpertiseOpen Innovation & Strategic Partnerships Public Funding Identification Proposal Development & Grant Writing
