A new route to financing landfill gas-to-energy projects
For the last several years, just over half of the nation`s new power capacity has been supplied by private, independent power project developers. Of this, virtually all the projects over 10 megawatts in size have been financed with non-recourse debt - that is, where the lender can look only to cash flows from the project for repayment, rather than to the financial resources of the project developer. This has allowed relatively small, entrepreneurial development companies to compete on an equal footing with much larger companies, including the utilities themselves. But developers of the 140 or so landfill gas projects operating in North America haven`t shared the advantages of these other independent projects. While equity financing for landfill gas projects has been available for some time, most LFG developers have found it extremely difficult to attract non-recourse debt due to the small size and perceived technology/environmental risk of LFG projects. Lenders` attitudes are changing however, and more are looking more favorably at providing non-recourse loans for LFG projects. Fulfilling certain requirements, project developers may be able to qualify for this financing technique.
- OSTI ID:
- 79383
- Journal Information:
- Solid Waste Technologies, Journal Name: Solid Waste Technologies Journal Issue: 2 Vol. 9; ISSN SWATE7
- Country of Publication:
- United States
- Language:
- English
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