New Energy Risk provides performance insurance to allow for financing of plastics-to-fuel project

April 23, 2019 |

In California, New Energy Risk has provided RES Polyflow, a leading plastics-to-fuel technology company, with a performance insurance program for its ground-breaking Ashley, Indiana plant. The project will be the United States’ first commercial-scale plastics-to-fuel project. Once completed, the facility will convert 100,000 tons of plastic into 18 million gallons of fuel and six million gallons of wax annually. By working with New Energy Risk (NER), RES Polyflow has reduced the overall cost of project capital, increased the certainty of execution, and made the bond offering more attractive to investors.

To finance this deployment, RES Polyflow and its parent development company, Brightmark Energy, raised an aggregate amount of $260 million, including $185 million in Indiana green bonds, underwritten by Goldman Sachs & Co. To streamline the financing, the companies approached NER, an affiliate of the global reinsurance group AXA XL, a division of AXA, to design a custom performance insurance policy that would mitigate technology risk for financiers interested in investing in this revolutionary project. NER used a systematic, data-driven approach to extensively assess the company’s technology, then developed an insurance product that covers the overall waste conversion process of the plant.

RES Polyflow’s plastics-to-fuel pyrolysis process sustainably recycles waste that has reached the end of its useful life – including items that cannot readily be recycled, like plastic film, flexible packing, Styrofoam, and children’s toys. The Indiana plant superheats and then converts plastic into ultra-low sulfur diesel and naphtha blend stocks, as well as commercial grade wax. In the future, the output could be turned back into plastic, creating the world’s first circular technology for plastics.

Category: Fuels

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