BlueFire Renewables has received a Letter of Intent from the Export Import Bank of China to provide up to $270 million in debt financing for its bioenergy project located in Fulton, Mississippi. As advanced bioenergy companies struggle with private financing, BlueFire said the the financing is “unprecedented” and significant for the U.S. market.
“This is a significant feat, not just for BlueFire as it also provides a model for the U.S. small business community because it is a strong indication of China’s commitment to support and fund U.S. renewable energy technologies to improve the environment and build a strong foundation for cooperation between China and the U.S. in the field of renewable energy,” said Arnold Klann, CEO of BlueFire Renewables.
According to Klann, BlueFire has been working with China EXIM in response to the China Strategic and Economic Dialogue with the U.S. that encourages U.S./China cooperation in the renewable energy field including financing. Klann believes his company’s technology could be the path to commercialization for many languishing renewable energy projects.
“There are significant opportunities for replicating the BlueFire Fulton size or larger facilities in China and the U.S. to deal with problematic agricultural and urban waste currently being burned or buried,” added Klann. “Debt financing has been the most difficult part of the financing to obtain for the cellulosic biofuels industry. BlueFire’s business model and relationships with China EXIM will set the standard for future debt financing arrangements and could be the spark that leads to the more beneficial use of cellulosic wastes in the biofuels industry in the U.S. and China. We are cracking the code when it comes to striking a win-win business deal for China, the U.S. and energy consumers.”
The Letter of Intent continues the international collaboration between U.S. and China initiated by BlueFire. The companies will continue to work together to complete the standard due diligence procedures of the China EXIM bank and meet all credit criteria and condition precedent to reach definitive agreements in order to complete the financing as soon as possible. Once completed, China Three Gorges Corporation and its U.S. subcontractors will begin construction of the Fulton Project.