Projects

Financial Structuring of a 55 Million Gallon Ethanol Facility

Service Category:   Biomass/Biofuels
Market Sector:  Energy Asset Developer
Region: United States/Canada

Key Objective
A project developer required financing and development assistance for a 55 million gallon ethanol facility.

Our role in project
Pace Global acted as lead financial advisor in the arrangement of financing for the development, construction, and operation of a 55 million gallon per year corn-to-ethanol manufacturing plant in California.  In this role, we successfully arranged for the private placement of $60 million in equity and $55 million in debt.  This effort included the complex structuring of multiple classes of equity and mezzanine equity capital to maximize returns for the developer.  In addition, Pace Global negotiated financing terms with the debt provider on behalf of the developer.  Our efforts further extended to project development advisory services on EPC, fuel, off-take, and hedging contracts to obtain the most attractive terms from the financial markets.

Results
The plant is projected to generate 55 million gallons of fuel grade ethanol, 400,000 tons of animal feed, and 1.5 million gallons of corn oil each year. The plant is powered by an ultra-low NOx gas turbine generator capable and maintains a carbon footprint much lower than typical plants.

For more information, please contact:
 Jim Diemer at 703.818.9100 or via email.