Fiberight LLC announced the completion of a $70 million project financing for its municipal solid waste (MSW) processing facility, being constructed in Hampden, Maine.
The project financing included a $45 million Finance Authority of Maine (FAME) tax-exempt bond issuance underwritten by Jefferies LLC, and $25 million in private equity. Phase one facility construction for the Hampden, Maine facility started in October 2017, with a focus on sitework and building construction.
“Our phase 1 construction is largely complete,” Fiberight CEO Craig Stuart-Paul said in a statement. “Now that we have closed bond financing, we are able to maintain our pace of construction and plan to start accepting waste from our municipal customers in the second quarter of this year. We are working with the MRC and our customers to manage a smooth transition as we begin bringing waste to our facility.”
The 180,0000-ton per year project will converts MSW into high-value commodities. The facility features an advanced materials recovery facility (MRF) with additional processes for generating clean cellulose, engineered fuels and biogas from traditionally non-recyclable materials. The MRF is being installed by CP Group, which is providing the front-end recovery equipment for the facility.
The Hampden project will serve 83 municipalities and public entities represented by the Municipal Review Committee, a non-profit organization that currently manages the waste disposal activities in Eastern and Northern Maine. Fiberight was selected by the MRC after a review process that evaluated the potential of Fiberight’s process, optimized throughput design, public/private contract structure, and potential to divert up to 80 percent of incoming waste from disposal. As a result, Fiberight was awarded a 15-year contract with participating MRC municipalities; the company plans to process MSW from other municipalities and commercial clients under separate contracts.
In addition to the bond financing, Fiberight has secured project finance commitments that will enable it to build additional projects. The company is currently working with several municipalities and private waste haulers in the planning of future advanced waste recycling projects.
In July 2016, the Maine Department of Environmental Protection issued permits to the state’s Municipal Review Committee and Fiberight to build a new waste management plant in Hampden. And despite Penobscot Energy Recovery Company’s appeal that challenged Fiberight’s permits, construction of the facility was allowed to proceed.
In April 2017, Fiberight was granted with a $45 million, tax-exempt bond from the Finance Authority of Maine to help construct and operate its new WTE facility, which will convert trash from more than 115 communities into biogas.