WALTHAM, Mass. -- New Energy Capital Corp. today announced its participation in the financing of the first large-scale biodiesel production plant in the Northeast/Mid Atlantic region. Mid Atlantic Biodiesel Company, LLC broke ground this month on a five million gallon per year facility in Clayton, Delaware that will produce biodiesel from virgin soy bean oil as well as waste vegetable oils and animal fats. Biodiesel is used in existing diesel engines and blended with home heating oil. It is distributed via current fueling infrastructure. By replacing petroleum-based diesel and home heating oil, biodiesel lowers air pollution and greenhouse gas emissions, reduces U.S. oil dependence, and stimulates the nation's farm economy.
New Energy Capital provided equity capital, along with other investors, for the $10 million project and worked closely with the developer, Rural Enterprise Management Company (REMCO), LLC, to secure financing. Greater Atlantic Bank of Reston, Virginia provided a loan for the facility. The U.S. Department of Agriculture provided a loan guarantee and grant; the State of Delaware also provided financial support.
Fagen Inc., of Granite Falls, Minnesota, a leading builder of biofuels plants, will construct the facility. Plant design and process technology will be supplied by De Smet Ballestra, a world leader in oil and fats technology that has built large biodiesel plants in Europe. The facility will be operated by REMCO. World Energy Alternatives, of Chelsea, MA, the nation's largest biodiesel marketer, will sell the biodiesel.
Dan W. Reicher, New Energy Capital President and former United States Assistant Secretary of Energy, said: "We are excited to participate in the financing of a path-breaking new biodiesel production facility. The plant will deploy state-of-the-art technology to produce biodiesel from multiple feedstocks. Biodiesel is an attractive fuel for the US market with the rapidly rising cost of petroleum-based diesel, tightening clean air standards, and concern about the nation's increasing reliance on imported oil. The strong engineering, operations and marketing firms associated with the plant - along with an attractive market environment - make this project a compelling investment opportunity as well as an economic and environmental plus for the region."
Dan Goldman, New Energy Capital's Chief Financial Officer, commented: "Mid Atlantic Biodiesel represents one of the first project financings for biodiesel. We are extremely pleased to have Greater Atlantic Bank validate the well-structured contractual arrangements for this project. It represents an attractive model for future biodiesel projects."
Marty Ross, President of Mid Atlantic Biodiesel Company, said: "The Mid Atlantic Biodiesel plant is strategically located in terms of both feedstocks and market and will be an attractive plant in the rapidly growing biodiesel industry. Locally, there is great excitement about the economic development the plant will spur in terms of jobs and outlets for Delaware agricultural products and wastes."
REMCO President Geoff Soares commented: "Our partnership with New Energy Capital, with its strong financial, technical and managerial resources, and with De Smet Ballestra, with its proven cost effective technology, will help us deliver on the strong project fundamentals as well as lead to the development of additional biodiesel projects utilizing a similar model."