Doonbeg, through the natural extension of its shipping and mining businesses, has developed a practice in niche project finance. Doonbeg has advised on projects that have included ports, terminals, and warehousing and logistics facilities. Most recently, Doonbeg has expanded its specialty project finance business into the alternative and renewable energy and renewable fuel industries. Below is an example of a project in the renewable fuels business in which Doonbeg has advised a client company in closing the financing of a facility that is part of a series of development projects that will follow.
Renewable Diesel Projects:
- Doonbeg is advising a California based project development company in structuring and financing the acquisition and conversion of two (2) pre-existing diesel plants in Nevada and one (1) in Mississippi.
- The 2 Nevada based facilities will produce, upon conversion, approximately 10,000 barrels a day while the Mississippi facility will produce 2,000 barrels a day. The renewable diesel will be produced using agricultural and used cooking oil(s) feedstock and will be sold into the California market.
- The 2 Nevada facilities will be funded by approximately $315 million in senior debt guaranteed by the US Department of Agriculture. The $115 million senior debt facility closed in December of 2017 and the other $200 million senior debt facility is expected to close by March 1, 2018.
- The Mississippi facility will likely close its senior debt commitment by June 30, 2018.
- A fourth facility, planned for Lake Charles, Louisiana, will produce 2,000 barrels a day utilizing a bio mass feedstock, pyrolization technology. The construction budget will be approximately $500 million of which $350 million in municipal debt issued by the Louisiana Public Facilities Authority has been approved and discussions have commenced with the principal underwriter.
Doonbeg is aligned with certain project development specialist firms wherein the structuring and financing of projects is the firm’s responsibility. This frees the development firms to focus on all development, engineering and operational matters.
Doonbeg’s expertise includes:
- Direct senior management experience within the partners group in development of major road, rail, terminal, storage, production and resort facilities.
- Managing projects in multiple geographies including developed, emerging, and frontier markets.
- Structuring, financing, acquisition, and disposition of projects.
- Dedicated focus to renewable fuels and renewable energy power and materials’ projects.