Case study · Renewables & Energy Transition
Essential Green
A greenfield biorefinery which will process re-esterified oil derived from industrial waste, animal fat and used cooking oil to produce Renewable Diesel and Sustainable Aviation Fuel to be exported into the European market.
Deal value
US$500m
Portland's role
Financial Advisor to US Exim
Year
Ongoing
Transaction background
- Total project cost c. US$800m
- Integrated project with interface risk managed through EPC arrangements and contingent equity support
- The revenue stream protected through innovative pricing formula built into long-term offtake agreement with creditworthy counterparty
Transaction structure
- Revenue stream underpinned through long-term offtake agreement with global commodities trader targeting the European market
- Requires feedstock to be certified as compliant with European Union Renewable Energy Directive (“RED III”)
- Project has flexibility to process alternative raw materials as direct feedstocks providing upside potential and risk mitigation in the event of feedstock supply shortfalls
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