The article discusses challenges in financing biomass-to-energy projects due to uncertainties surrounding feedstock supply. Lenders typically hesitate to fund these projects because a guaranteed feedstock supply is essential for developers to finalize investment decisions.
To address this issue, Yilkins has partnered with Ecostrat and New Energy Risk to provide Feedstock Supply Insurance (FSI) to developers using their technology. This collaborative effort aims to reassure lenders about feedstock availability, thereby facilitating project financing.
Key points include:
– Yilkins’ technology reduces technology risk, supported by performance coverage from New Energy Risk.
– The integration of Ecostrat’s FSI helps tackle feedstock supply concerns, making projects more attractive to lenders.
– By combining technology performance and feedstock security into one package, the alliance creates a more comprehensive risk evaluation for potential investors.
Industry leaders emphasize the importance of addressing both technology and feedstock risks in project financing, showcasing this partnership as a meaningful step towards financing biomass projects more effectively. All insurance offerings mentioned require underwriting evaluations and are subject to specific conditions.
