Operational, Scalable, Development Potential, Contributes to Green Energy Goals
Investment Summary: Fully operating Second Generation biofuel with scalable technology and development potential is available for acquisition. Plant was built as a demonstration plant and R&D hub by a US based agribusiness for purposes of producing biodiesel from non-edible waste generated during production of agriculture based products. Since commissioning this project, the owner has found an alternative method to address production waste, and as a result, this plant no longer has strategic value.
The plant was built at a cost of 15 million USD and is situated in Eastern Europe to take advantage of favorable economic conditions and Eurozone green energy incentives and initiatives. It is fully operational, but requires additional capital expenditure to operate 24/7. Diesel fuel meeting or exceeding EN590 standards is produced and can be delivered to tanker trucks on the premises.
The plant itself has further development potential. In addition, now that the technology has been proven and exceeds expectations, it may be employed elsewhere. Feedstocks are cheap and include straw and nut hulls, advanced feedstocks according to EU Renewable Energy Directive II. There is an abundant and cheap supply of straw from regional farmers.
Equity capital is sought. Financing contingent on equity raise is in place.
Investment Structure: 100% of the business
Investment Sought: 10€ million, specific terms negotiable
Projected Returns: Minimum 20% IRR forecast
Use of Capital: acquisition of the business and cap-ex.
Project Highlights:
Satisfies multiple EU green and renewable energy related goals
Operational.
3.5 million of cap-ex will more than triple pro forma revenue and allow continuous
operation.
Potential to receive additional EU funding.
Central, high traffic location facilitates distribution throughout the EU.
Highly automated minimizing employee headcount.
Experienced operational staff can be retained.
Plant manager has a degree in Chemical Engineering and an advanced degree in Fuel Technology. Professional staff has several years of experience in the fuel production industry.
Note: We have received verbal approval from a EU-based PE group indicating their interest in purchasing a minority stake alongside other investors for this deal.
