Bioenergy and Waste-to-Energy companies face a challenging financing environment.
VANCOUVER, Wash., Jan. 30, 2024 /PRNewswire-PRWeb/ -- 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.
"Many of the respondents voiced concerns about their ability to source adequate funding for their projects. It is obvious people are struggling. But the other side of the coin is lenders and investors are also struggling to find good projects to fund. It's an interesting situation." said Art Housholder, a Managing Director of Nola Capital Corporation.
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.
"There is an incredible amount of money looking for a good place to be employed in the bioenergy and waste to energy industries", added Housholder. "If someone has adequate equity in their deal, a strong Power Purchase Agreement or Offtake Agreement and a sound management team they need to go ahead and make the effort to get funded but many people are making the mistake of looking for funding in places it was located in the past. Times have changed. They need to look at the alternatives that are available for high quality projects. Getting the right people talking to each other is more important now that it has ever been in the past. This nation needs healthy bioenergy and waste to energy companies."
About Nola Capital Corporation
Depending upon a particular project, the company may act as a funder, a table underwriter or a capital partner in a financing for U.S. private or public projects. For further information please visit the Company's website at www.nolacap.com
Media Contact
Ken Myers, Nola Capital Corporation, 1 888-711-6652 412, [email protected], www.nolacap.com
SOURCE Nola Capital Corporation
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