BlueFire Renewables, Inc. has received a Letter of Intent from the Export Import Bank of China (China EXIM) to provide up to US$270 million in debt financing for its bio-energy project in Fulton, Mississippi, USA.
The Fulton Bio-Energy project will allow BlueFire to utilize green and wood wastes available in the region as feedstock for the ethanol plant that is designed to produce approximately 19-million gallons (72 million liters) of ethanol per year.
Arnold Klann, CEO of BlueFire Renewables, Inc. stated:
“This is a significant feat, not just for BlueFire as it also provides a model for the U.S. small business community because it is a strong indication of China’s commitment to support and fund U.S. renewable energy technologies to improve the environment and build a strong foundation for cooperation between China and the U.S. in the field of renewable energy,”
Klann said that BlueFire has been working with China EXIM in response to the China Strategic and Economic Dialogue with the U.S. which encourages U.S./China cooperation in the renewable energy field. Due to the difficulty in obtaining financing for capital intensive energy projects, many renewable energy projects do not get past the pilot phase and into the full commercial development stage.
The companies will continue to work together to complete the standard due diligence procedures of the China EXIM bank and meet all credit criteria and condition precedent to reach definitive agreements in order to complete the financing as soon as possible. Once completed, China Three Gorges Corporation and its U.S. subcontractors will begin construction of the Fulton project.