Securing Outside Financing for Biomass Power Projects

Biomass Magazine September 2009
By Trotter Hunt

The key to raising money for biomass power projects is developing a good solid business plan that lets investors and lenders know that the projects’ fundamentals are secure enough to ensure that financial returns are met.

Incentives included in the recently passed stimulus bill combined with pending renewable portfolio standards (RPS) at the federal level, have created a mass of new project developers hoping to bring biomass power projects to market. All of these developers face the same challenge: securing outside financing. To do this, developers must convince investors and lenders that the projects’ fundamentals are secure enough to ensure that financial returns are met. Having a good plan and knowing the requirements are key in today’s challenging economic environment.

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