Assets of bankrupt Fulcrum BioEnergy up for sale

The Sierra BioFuels plant is scaled to produce approximately 11 mgy. (Photo: Fulcrum BioEnergy Inc.)

Fulcrum BioEnergy Inc. filed for Chapter 11 bankruptcy Sept. 9 and its assets, including Fulcrum Sierra BioFuels LLC near Reno, Nevada, are up for sale.

Development Specialists Inc. has been retained as financial advisor and investment banker for the proposed asset sale, subject to bankruptcy-court approval.

Switch Ltd., a stalking-horse bidder, has bid $15 million for the assets of Fulcrum BioFuels, plus the assumption of certain liabilities.

Founded in 2007, Fulcrum is a clean-energy company in the renewable fuels sector focusing on converting municipal solid waste (MSW) into low-carbon transportation fuels, including sustainable aviation fuel (SAF) and renewable diesel.

Fulcrum’s proprietary process combines gasification and Fischer-Tropsch technologies to convert organic landfill waste into liquid fuel.

The biorefinery near Reno conducted initial operations in late 2023 producing approximately 6,000 gallons.

Following a maintenance outage to replace, modify and repair certain equipment, the plant is nearly ready for start-up operations, according to DSI.

Prospective bidders could look to complete the outage work and operate the facility as designed and constructed or look to retrofit with preferred technology.

The assets included in the stalking-horse bid include the waste-to-fuels biorefinery with a design capacity of 11 million gallons per year of synthetic crude oil located on 19.4 acres 20 miles east of Reno, Nevada; a feedstock-processing facility situated on 10 acres, 10 miles east of Reno; rights to a NV Energy high-voltage distribution agreement providing 25 megawatts of total power delivery; rights to a water-supply agreement for 155 acre-feet per year.

Other assets encompass tangible assets such as property, plant and equipment (PP&E) and inventory, permits and licenses, causes of action related to Fulcrum BioFuels, and all associated security deposits.

Fulcrum BioEnergy is also offering expanded assets for bidding, which are not included in the stalking-horse bid.

These include 14 U.S. patents, five pending U.S. patent applications, 26 international patents, and over 30 pending international patent applications.

Fulcrum also has equity in U.K. subsidiaries that are currently in the design stages of development.

“These intellectual-property assets and equity interests present a unique opportunity for interested parties to acquire valuable innovations and potential future revenue streams,” DSI stated.

Bids can be made on the Fulcrum BioFuels assets included in the stalking-horse bid and the expanded assets.

The bid deadline is Oct. 25 at 4 p.m. Eastern time.

The auction is scheduled for Nov. 1 at 10 a.m. Eastern.

To submit a bid and participate in the auction, a potential bidder must submit, among other things, a nondisclosure agreement (NDA), a letter of intent, and proof of financial capacity to close.

Morris, Nichols, Arsht & Tunnell LLP has been engaged as debtor’s counsel for the company.

For inquiries or additional information, contact Robert Dehney, Curtis Miller or Clint Carlisle.