Fulcrum receives $375M in interim bond financing for Gary, Indiana, waste-to-fuels project

Fulcrum BioEnergy Inc. recently announced the completion of interim financing to fund its second waste-to-fuels project, culminating in the issuance by the Indiana Finance Authority of $375 million of Environmental Improvement Revenue Bonds through Fulcrum’s wholly owned subsidiary Fulcrum Centerpoint LLC. Proceeds from the offering will be held in escrow with the bonds subject to a mandatory tender for purchase on Nov. 15, 2022. Fulcrum expects to refinance the bonds on or before then. The transaction was led by Morgan Stanley and Goldman Sachs & Co. LLC.

“We are pleased to take this next step in accelerating our growth trajectory with this financing,” said Eric Pryor, Fulcrum’s president and CEO. “Fulcrum was awarded $500 million in volume cap by the Indiana Finance Authority to help fund a portion of the Centerpoint BioFuels Plant, the company’s second waste to zero-carbon fuels project. This interim financing provides the company with ample time in 2022 to finalize engineering and obtain the necessary permits and authorizations to launch our next zero-carbon project.”

The bonds are an obligation solely of Centerpoint and are not a debt, liability or obligation of the Indiana Finance Authority or the state of Indiana. However, as a result of the volume-cap award, the bonds will bear interest at a tax-exempt rate.

The Centerpoint BioFuels Plant will be located in Gary, Indiana, with waste feedstock sourced from the greater Chicago and northern Indiana areas. Fulcrum has secured the biorefinery site, completed initial engineering and has submitted the air permit for the project, which will have the capacity to produce approximately 33 million gallons of drop-in transportation fuel annually. Construction is currently targeted to begin in 2023.