Bluefire Renewables lands $500+ million offtake agreement; wraps pre-conditions for DOE loan guarantee
In California, sources close to the Bluefire Renewables deal with Tenaska confirmed that the offtake agreement is worth in excess of $500 million at current ethanol prices, and said that Bluefire project in Mississippi is expected to be the subject of at least one more major announcement in the next two weeks.
Bluefire CEO Arnie Klann declined to comment on the rumors, but said “in the last eight weeks, we have achieved the nearly impossible, in getting an offtake agreement that provides the financial stability that lenders can beg their arms around.”
Klann added that the 15 year term of the Tenaska deal reflected the 12-year term on project debt that the company is seeking, plus a 3-year tail. “Tenaska is getting unto biofuels, and really see the value of the RIN credits and the power of the Renewable Fuel Standard in creating a market for cellulosic ethanol. They see it as a win win for them.”
Category: Fuels
