Strategic Biofuels awarded $250 million bond allocation by Louisiana governor
Strategic Biofuels announced Feb. 17 that Louisiana Gov. John Bel Edwards awarded its Louisiana Green Fuels venture—a 34-million-gallon-per-year renewable diesel project planning to use wood waste as feedstock along with carbon capture and sequestration—a $250 million bond allocation.
The bonds, according to Strategic Biofuels, will form an integral part of the debt financing for construction costs and be sold into the private market at final investment decision in early 2023, when construction is expected to begin.
For the 2021 private activity bond allocation year, Louisiana Green Fuels received $250 million of the $393 million that was available from the state.
“The allocation provides the right to issue tax-free bonds to finance the project, which is qualified to receive them because it is a waste-to-fuels project,” the company stated, adding that these bonds are not guaranteed by the state nor are taxpayer dollars involved. To date, Louisiana Green Fuels has received $450 million in total bond allocations toward plant construction.
“We are going beyond net zero by taking things a revolutionary step further and achieving a deeply negative carbon footprint, right here in the state of Louisiana,” said Paul Schubert, CEO of Strategic Biofuels. “The continued support from the state and Gov. Edwards reflects the confidence they have in our project and team.”