As part of the equity investment, the Houston-based Waste Management agreed to a secured loan facility that will provide up to $70 million for Fulcrum’s proposed Sierra BioFuels plant, if certain conditions are met. The two companies also formed a project development agreement to collaborate on various projects for the Pleasanton, Calif.-based Fulcrum, using municipal solid waste (MSW) supplied by Waste Management subsidiaries as feedstock, the companies said in a news release.
“This investment underpins our commitment to supporting innovative technologies that extract the value in waste and converts it into clean renewable energy,” said Joe Vailancourt, managing director for Waste Management’s Organic Growth Group.
Fulcrum recently began construction of its Sierra BioFuels plant near Reno, Nev. The facility is designed to process 147,000 tons of waste per year and produce approximately 10 million gallons of ethanol annually. Waste Management of Nevada had previously committed in a separate feedstock agreement to supply the Sierra plant with MSW.
“We’re excited to enter this strategic relationship with Waste Management that enhances our financial resources and provides access to additional feedstock,” said E. James Macias, president and chief executive officer of Fulcrum. “This allows us to expand our national development program that includes projects with the total capacity to produce more than one billion gallons of fuel annually.”