Nola Capital’s bioenergy and waste-to-energy survey shows trends for biofuel investment appetite

In Washington state, Nola Capital Corporation announced results of its bioenergy and waste-to-energy survey. The survey received confidential responses from more than 100 public and private businesses in 23 states that included bioenergy companies, waste-to-energy companies, lenders, investors and industry consultants. The amount of financing being requested for projects ranged from a low of $12 million to a high of $140 million.

Among the results:

68 percent of the bioenergy and waste-to-energy companies in the survey said their financing needs were for expansion or acquisition and their current operations are profitable.

79 percent of all respondents said they were optimistic that the need for bioenergy waste-to-energy projects will continue to be strong in the future.

56 percent of all respondents predicted at least a modest slowing of the nation’s economy within the next 12 to months.

21 percent predicted a substantial slowing of the nation’s economy.

61 percent of the bioenergy and waste-to-energy companies surveyed said they had at least one failed funding attempt over the past two years.

46 percent of the lenders/investors surveyed said they had closed at least one bioenergy or waste-to-energy funding in the past year.

12 percent of bioenergy and waste-to-energy companies surveyed said they had received funding from more than one source over the past year.

71 percent of lenders/investors said their primary obstacle to funding projects was insufficient cash equity in the projects. Also mentioned were environmental permitting issues and projects’ engineering/intended technology.