Creditworthiness Key to Biomass Project Success

Biomass Magazine March 2010
By John Eustermann

Most biomass projects require the developer to raise large amounts of finance well in advance of breaking ground, let alone commercial operation. Although the debt markets are expected to rebound and the implementation of multiple state and federal financial incentives and capital sources have some saying they already see things opening up, arranging finance for a renewable energy project is not easy, and the route adopted to raise finance has a major bearing on how the project will be developed. It is therefore important that, at an early stage, consideration is given to the available financing options.

The push for renewable energy and the green economy combined with the multiple grants, guarantees, bonds and other stimulus programs and facilities have resulted in many options for biomass facility developers to consider when layering up their financial model. Though the applications and requirements differ from option to option, they share one threshold requirement: creditworthiness.

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