Fulcrum BioEnergy files for bankruptcy
Fulcrum BioEnergy Inc., a waste-to-energy company, has filed for Chapter 11 bankruptcy as of September 9, 2024. The company, initially focused on converting municipal solid waste (MSW) to ethanol, later shifted to producing sustainable aviation fuel (SAF). Despite securing significant investments and grants, Fulcrum faced operational challenges, leading to the shutdown of its Sierra Biofuels plant in early 2024. Fulcrum also had plans for a 30 MMgy SAF facility in the U.K.
Fulcrum BioEnergy Inc. and affiliated companies Fulcrum Seirra Holdings and Fulcrum Sierra Finance Co. on Sept. 9 filed voluntary petitions for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware. The Chapter 11 bankruptcy process provides reorganization while a company continues to operate.
Fulcrum BioEnergy, a waste-to-energy company, launched operations more than a decade ago. The company initially planned to convert municipal solid waste (MSW) into ethanol, but later pivoted to the production of sustainable aviation fuel (SAF).
The company in 2008 announced plans to build the Sierra Biofuels facility near Reno, Nevada. At that time, the proposed facility was expected to produce 10 MMgy of ethanol from MSW feedstock. Fulcrum Bioenergy in 2011 filed a registration statement with the U.S. Securities and Exchange Commission for a proposed initial public offering (IPO), but withdrew that registration in late 2012.
In 2012 Fulcrum Bioenergy was selected for a $105 million conditional loan guarantee from the USDA to support the Sierra Biofuels project. The following year, the company was awarded a $4.7 million grant by the U.S. Department of Defense to support engineering and development on a plant to produce renewable jet fuel. In conjunction with announcing the DOD award, Fulcrum announced it had successfully demonstrated the conversion of MSW into jet and diesel fuels
Several companies also invested in Fulcrum Bioenergy during various phases of the company’s development, including United Airlines, Waste Management, Cathay Pacific and bp.
Th company in May 2016 announced it had broken ground on the final phase of construction on the Sierra Biofuels plant. By that time, the project had shifted away from ethanol production, and was focused on the production of syncrude, which would be further processed into advanced biofuels, such as sustainable aviation fuel (SAF). Construction on the project was completed in mid-2021 and Fulcrum Bioenergy in May 2022 announced that the plant had begun operations. Capacity was estimated at 11 MMgy. Fulcrum in December 2022 announced the first fuel had been produced at the plant. The facility, plagued by operational challenges, shut down earlier this year.
Fulcrum Bioenergy has also been working to develop several other projects, including a 30 MMgy SAF plant in the U.K. That project, first announced in 2021, received a £16.8 million grant from the U.K. government in 2023.
Source Link : https://ethanolproducer.com/articles/fulcrum-bioenergy-files-for-bankruptcy
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