Strategic Biofuels to bolster U.S. green fuels project through U.S. DOE loan guarantee
Accelerating an already impressive pace for the construction of its Louisiana Green Fuels (LGF) Project, Strategic Biofuels, the leader in developing negative carbon footprint renewable fuels plants, announced today that it has been invited by the U.S. Department of Energy’s (DOE) Loan Programs Office (LPO) to submit a Part II application for a proposed $1.6 billion loan guarantee under the Title XVII Innovative Clean Energy Loan Guarantee Program. The Part II application process entails completing and passing through a number of steps which could ultimately result in a conditional commitment and final U.S. Department of the Treasury, Federal Financing Bank loan guaranteed by the DOE.
“If our application proves successful it would be combined with the Tax Exempt Bond allocations from the State of Louisiana to form the debt portion of our project’s financing,” said Strategic Biofuels CEO Dr. Paul Schubert. “We believe the loan guarantee program is a shining example of the US government’s commitment to decarbonizing the transportation sector. We are proud that our LGF Project met the stringent Part I requirements and we look forward to working closely with the DOE to fulfill the requirements of Part II of the application process.”
Since the company announced its successful sequestration test well program completed in 2021 and confirmed the plant’s ability to achieve deep carbon negativity, Strategic Biofuels and its LGF Project team has made immense progress winning the support of local government, the broader Caldwell Parish community, the Louisiana Governor’s office and State Legislature, and national entities from the US Department of Homeland Security (DHS) to the US Forestry Service and more. Life Cycle Associates has scored LGF’s carbon intensity at -294 gCO2e/MJ, which is an approximate 400% reduction in the carbon footprint relative to fossil diesel. This is accomplished through carbon capture and sequestration (CCS) from the conversion of waste from sustainably managed plantation forests into cleaner burning renewable diesel, combined with CCS from green electricity production from sawmill wastes.
DOE’s invitation to submit a Part II application is not an assurance that DOE will invite an applicant into the due diligence and term sheet negotiation process, that DOE will offer a term sheet to an applicant, that DOE will issue a loan guarantee, or that the terms and conditions of a loan guarantee will be consistent with terms proposed by an applicant. The foregoing matters are wholly dependent on the results of DOE review and evaluation of a Part II Application, and DOE’s determination whether to proceed.
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