$500 Million and No One to Dance with? Canada and Advanced Biofuels

by Jim Lane (Biofuels Digest) ?Canada?s $500 million NextGen Biofuels Fund, five years after formation, gets close to making its first investments just as Canada?s leaders consider pulling the plug

It was the most amazing sovereign commitment to biofuels of its time, the $500 million NextGen Biofuels Fund that Canada established in 2007. As a percentage of GDP, it was the equivalent of a $4.3 billion commitment by the United States.

To make matters sweeter, it was a companion fund to the $550 million SD Tech Fund. SDTF, in turn, had the broad responsibility to invest in early R&D, pilots and commercial demonstrations in technologies that could improve air, water, or soil quality, or bring forward new energy or energy-saving systems.

The NextGen Biofuels Fund was focused solely on providing up to 40 percent of the equity for first commercial projects ? novel, technologies that found trouble in getting conventional project financing. The Fund could allocate up to $200 million for a single investment. Another 20 percent of project equity could be cobbled together, in certain Canadian provinces, with a collection of provincial-level credits, grants and incentives. Leaving the project sponsor to come up with only the remaining 40 percent, presumably through equity provided by a parent, strategics, or its venture or private equity investors.

? All you had to do was build a commercially-feasible, commercial-scale project in Canada.

?Ultimately, the fund?s managers went on a year-long search for companies to fund, looking at more than 180 in all. Winnowed ultimately down to 24 that were project-ready, and suitable for Canada.

Now, after a round of applications and due diligence, they are reduced to a group of eight. Five in the process of finalizing their funding arrangements now, three that are expected to be finalized in a second wave. ?READ MORE

Related posts:

1. Next-Generation Renewable Fuels to Play Crucial Role in Canada?s Transition to a Bio-Based Economy: SDTC Canada Makes Annual Call for Applications to $500 million
2. Clean Tech R&D Funding for Small Business: NextGen Biofuels Fund Call for Proposals
3. ZeaChem Signs Contract to Develop ?Drop-In? Advanced Biofuels
4. Department of Energy Announces up to $12 Million in Investments to Support Development and Production of Drop-In Biofuels
5. The Biofuels Technology Square Dance

Source: http://advancedbiofuelsusa.info/500-million-and-no-one-to-dance-with-canada-and-advanced-biofuels

Hunter Hayes Movember USC shooting halloween camilla belle chipotle lsu football