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RE: SEC funding for biomass-fueled energy production?



Rick
Municipalities occasionally issue revenue bonds in conjunction with
construction of waste to energy plants even though the contractor is someone
like ABB or BFI.  Detroit incinerator comes to mind as a past project (in
the 1980's) I know of.  Unless they are already publicly traded, raising
equity requires SEC registration for an IPO but not for a private placement
(I think it is less than 10 investors with the financial resources and
sophistication to make them eligible for a private placement).  Lots of
financing options usually involving stakeholders in the energy or the
disposal of the waste but I am not aware of an private LLP underwritten
solely by revenue bonds for a project like that.  Bondholders usually want
deeper pockets to underwrite the risk or provide guarantees like firm
contracts to provide the waste or buy the power at set rates.  PURPA made
the utilities buy the power in the 1980's and I remember permitting a number
of these type projects which were financed using these guarantees ( they
needed the air permits to reduce bondholder risk).  However many were never
built.  VA, NY, MA were particularly popular states for this kind of project
back then  I don't know the status of that statute today.
John

-----Original Message-----
From: Rick Yoder [mailto:ryoder@mail.unomaha.edu]
Sent: Friday, July 18, 2003 11:11 AM
To:
Cc: Michelle K Spetman
Subject: SEC funding for biomass-fueled energy production?


Hi, all -

This one's a little off the beaten path.  Here's a request for information
I received, and am having some trouble finding an answer.  It's outta my
realm of expertise.  Does your collective wisdom and experience of  have an
answer?

"The project I am working on is an electric generation plant that is in
operation.  For over a decade it used coal as its only fuel.  That became
unprofitable.  Now, the plant uses waste wood, tires, and coal.  Now the
plant is profitable.

The desire of the owners is to enter the market of SEC registered
securities, primarily for debt but also for some equity.

My question is, do you know of any firm that has used SEC registered
securities to fund a biomass electricity generation plant?

I am beginning to suspect that the answer is "zero", but that usually is an
incorrect answer.

If you can provide any hints on a firm that might fit this bill,  that
would be helpful. "

Thanks  in advance -

ry


********************************
Richard Yoder, PE
Director, P2ric.org
1313 Farnam St.   Ste. 230
Omaha, NE  68182

402-595-2381
fax: 402-595-2385
ryoder@unomaha.edu
http://www.p2ric.org
http://nbdc.unomaha.edu
*******************************




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