Sourcing Renewables - March 24, 2021
New biofuel project from Delta Air Line partner receives $600 million investment
A new sustainable aviation fuel project that could provide fuel to Delta Air Lines will soon be underway in Washington State with a potential new investment of $600 million.
Stonepeak Infrastructure Partners executed a Memorandum of Understanding (MoU) with Northwest Advanced Bio-Fuels committing to the investment, which will be arranged by Morgan Stanley & Co. With this investment, the project could become the largest announced SAF/renewable biofuels project using cellulosic feedstock in the world.
NWABF has previously partnered with Delta Air Lines on developing sustainable aviation fuel, including a $2 million investment by the airline to study the financial feasibility of a biofuel production facility. Through this partnership, the project already has a long-term 60 million gallon per year off-take agreement.
This new investment in the project could partially fund its construction and repay prior development, design and engineering state costs.
“We are excited that a leading infrastructure investment firm sees the potential and the promise of the SAF Industry as well as future potential projects by our team, who have been vital to getting this Project to this point,” Dave Smoot, founder and manager of the Northwest Advanced Bio-Fuels Project, said in a statement. “We have strived to establish a workable platform to use for future opportunities, which the NWABF team will continue to lead.”