Creative financing of landfill gas utilization projects
The landfill gas utilization industry has gone through profound change in the last ten years and is in for further changes in the coming years. The first change is the probable expiration of Section 29 tax credits for newly developed projects and the second is the upcoming NSPS mandate to capture fugitive LFG emission from our nations larger landfills. In order to provide for the capital needs of LFG utilization project developers, lenders and investors must adapt to the changing nature of the industry as well. Lyon Credit Corporation has provided senior and subordinated financing as well as lease financing for the LFG utilization industry for the last three years. During this time, LCC has had to adapt its product offerings to meet the continuing needs of the borrowers in this industry. This presentation will focus on the changing nature of the industry and its effect on the economics, capital and financing requirements of newly developed LFG utilization projects. The two fundamental changes which have drastically altered the way projects are structured and financed include the changing nature of the LFG project product end-user and various regulatory and legislative measures which have significantly impacted the responsibilities of the project owner/developer and the future profitability of all LFG utilization projects. The successful LFG utilization project developers will be those who recognize that these changes are permanent departures from past practices, and those who will seek to exploit opportunities created by these changes. The lenders and investors to this industry will likewise have to adapt with these changes in order to continue to provide needed capital to this growing industry.
- OSTI ID:
- 381454
- Report Number(s):
- CONF-9603165--
- Country of Publication:
- United States
- Language:
- English
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