Menlo Park, Calif.,
Dec. 12, 2017 /PRNewswire/ -- New Energy Risk, a
provider of customized insurance technology solutions for renewable
energy projects, has provided Fulcrum BioEnergy, Inc., a company
that turns municipal solid waste (MSW) into renewable
transportation fuels, with a technology performance insurance
solution for Fulcrum's Sierra BioFuels Plant. The project,
currently under construction outside of Reno, Nevada will have the capacity to process
175,000 tons of municipal solid waste into more than 10 million
gallons of low-carbon synthetic crude oil on an annual basis,
beginning in early 2020. The synthetic crude oil is then processed
into transportation fuels. By turning municipal waste into fuel,
Fulcrum is reducing greenhouse gas emissions by more than 80
percent, and providing a cleaner fuel alternative for airlines, the
military, and other customers.
Fulcrum recently raised $150
million in bond financing for the Sierra BioFuels project,
and turned to New Energy Risk, an affiliate of global insurance
giant XL Catlin, to provide a performance insurance product to
support the financing. The insurance complemented Fulcrum's
patented technology, industry-leading development team and process,
as well as feedstock and off-take strategies, in order to increase
project attractiveness to investors. Fulcrum's existing investors
include US Renewables Group, Rustic Canyon Partners, United
Airlines, Waste Management, BP, and Cathay Pacific.
New Energy Risk is a specialty insurance technology company that
acts as an effective bridge between new technology innovators,
insurers and lenders. The company used a proprietary
techno-economic model that synthesizes scientific understanding,
engineering analysis, as well as actuarial and financial expertise
to assess the performance of Fulcrum's technology and potential
output of the Sierra BioFuels Plant. After its extensive assessment
of the MSW-to-fuels technology and process, New Energy Risk
developed a custom solution, backed and provided by XL Catlin, to
insure the performance of Fulcrum's plant. The insurance program
provides a significant technology risk mitigant for Sierra BioFuels
Plant bondholders who have invested in this revolutionary
project.
"The New Energy Risk technology performance insurance solution
further strengthened our business model for the Sierra BioFuels
Plant, and was an important factor in financing this project," said
Eric Pryor, Vice President and Chief
Financial Officer of Fulcrum BioEnergy. "The New Energy Risk team
worked closely with our engineering and technology teams to assess
the technical aspects for our innovative project and were
successful in creating an impactful and customized insurance
product that provides significant risk mitigation for Fulcrum's
bondholders."
"We're proud to have supported Fulcrum in their capital raise
and are excited to see their leading-edge technology and process
grow in both scope and impact – taking a true waste product and
converting it into millions of gallons of clean transportation
fuels, and creating hundreds of jobs in the process," said
Tom Dickson, CEO of New Energy Risk.
"Fulcrum is showing what is possible in the waste-to-fuel space,
and doing it at unprecedented scale. We look forward to working
with them on more projects in the years to come."
About New Energy Risk
New Energy Risk is a provider of innovative data analytics and
technology performance risk transfer solutions to the new and
renewable energy industry worldwide, and pioneered the development
of large scale technology performance insurance. It was founded in
2010 to provide complex risk assessment and serve as an effective
bridge between clean-energy innovators and insurers, and is part of
XL Innovate, an insurance technology venture firm. Since then, New
Energy Risk has helped its customers gain over $1 billion in financing for renewable energy and
new technology deployments. To learn more, please visit
www.newenergyrisk.com.
About XL Catlin
XL Catlin is the global brand used by XL Group Ltd.'s
(NYSE:XL) insurance and reinsurance companies which provide
property, casualty, professional and specialty products to
industrial, commercial and professional firms, insurance companies
and other enterprises throughout the world. Clients look to
XL Catlin for answers to their most complex risks and to help move
their world forward. To learn more, visit xlcatlin.com.
About Fulcrum BioEnergy
Based in Pleasanton, California, Fulcrum is leading the development
of a reliable and efficient process for transforming municipal
solid waste – or household garbage – into transportation fuels,
including jet fuel and diesel. The company's plants will provide
customers with low-cost, low-carbon drop-in fuel that is
competitively priced with traditional petroleum fuel. Fulcrum, a
privately held company, has aligned itself with strategic
feedstock, technology and fuel offtake partners to further
strengthen and accelerate the company's innovative approach to
commercially producing large volumes of renewable fuel from
municipal solid waste. For more information, please
visit www.fulcrum-bioenergy.com.
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SOURCE XL Catlin