Bioenergy: Fuelling a start-up

EnergyDigital.com
Andrea Marino Tue Jun 1, 2010

Bioenergy companies are increasing, yet securing funding may be challenging for this highly unproven and untested technology

Due to the economic downslide of recent years, finding funding for renewable energy projects is harder than ever. The current trend in the sustainable energy sector involves companies virtually waiting for the right kind of financing to come through for their projects. Whether they end up being funded by the federal government, state grants or bank-financed loans, a lot of environmental-development projects are being put on the back burner until the economy bounces back. For small businesses to get the right financing from banks, the banks also want to see evidence that these bioenergy companies will be successful. But it is hard to prove something like that when the bioenergy revolution is fairly new and hasn’t gained much exposure. In addition, these small businesses don’t have the funds to advertise or really make themselves known. While banks are interested in advanced environmental technologies to some degree, they are also hesitant to invest in a startup venture involving bioenergy—these projects are viewed as being a high risk in the eyes of most banks.

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