Strategic Biofuels Project Drives $1M Grant from DHS and FEMA to the Port of Columbia

August 25, 2022

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(Strategic Biofuels/Business Wire) The Louisiana Green Fuels Project in Caldwell Parish Seen as Critical Infrastructure by the Federal Government ---Strategic Biofuels, the leader in developing negative carbon footprint renewable fuels plants, announced today that the Port of Columbia, home to the Louisiana Green Fuels project (LGF) has been awarded a $1 million grant from the Department of Homeland Security (DHS) and FEMA through its Port Security Grant Program (PSGP). The PSGP is part of a series of grant programs created by Congress and implemented by DHS to help strengthen defenses around the nation’s critical infrastructure. The PSGP specifically provides funds to state, local, territorial, and private sector partners to help protect port-wide risk management and transportation infrastructure in support of the National Preparedness Goal.

A total of $100 million was awarded under the Port Security Grant Program to 213 recipients across the country. The $1 million awarded to the Port of Columbia was the largest award to the 15 Louisiana recipients and was in the top 8% of all awards granted. Notably, it was greater than the grants to the Port of New Orleans, the Port of Baton Rouge, and the Port Authority of New York and New Jersey.

“This funding commitment from DHS and FEMA recognizes our deeply carbon negative footprint LGF project as a key contributor to our country’s energy transition and worthy of federal investment into its security,” said Dr. Paul Schubert, CEO of Strategic Biofuels. “The Columbia Port Commission’s leaders have been strong advocates for us from the beginning and have been exceptionally effective in securing state and federal funds that enhance the Port’s infrastructure and support our project.”

The LGF project will have a significant and positive impact on the entire northern Louisiana region, creating an estimated 151 direct jobs and about 750 indirect jobs in Louisiana’s 5^th Congressional District, the seventh poorest Congressional District in the nation. The district’s average annual household income is just $36,000 and Caldwell Parish’s is even lower at $32,000 for its 10,000 residents. The average salary for jobs at the plant is expected to be $69,000, not counting benefits. Construction in support of the project is scheduled to begin at the Port this autumn, funded by an earlier $15 million Louisiana Port Priority Program grant through the Louisiana Department of Transportation and Development. The Port of Columbia is managing this early work.

“We are excited to see the Columbia Port Commission’s continuing success in bringing infrastructure improvement funds into Caldwell Parish,” said Bob Meredith, COO of Strategic Biofuels. “The Port’s efforts accelerate the construction schedule and provide tangible evidence of economic revitalization and new job opportunities coming to the region as a result of the LGF project.”

The LGF project has continued to benefit from the State of Louisiana and federal governments’ desire to support Carbon Capture and Sequestration (CCS) innovation and development to meet climate goals. Strategic Biofuels has been a leader in Louisiana since successfully completing the first CCS test well last summer. Most recently, the federal Inflation Reduction Act enacted August 16, 2022 increased the IRS Section 45Q sequestration tax credits the project will receive on the approximately 1.4 million tons per year of CO₂ it will sequester from $50/ton to $85/ton. In addition, on August 1, 2022, Act 163 signed by Louisiana Governor John Bel Edwards went into effect, expanding the eminent domain acquisition of the pore rights necessary for underground CO₂storage in Caldwell Parish and directly supporting the LGF project.

For more information about Strategic Biofuels or the Louisiana Green Fuels project, visit: www.strategicbiofuels.com.

About Strategic Biofuels

Strategic Biofuels LLC is a team of energy, petrochemical and renewable technology experts focused on developing a series of deeply negative carbon footprint plants in northern Louisiana that convert waste materials from managed forests into renewable diesel fuel and renewable naphtha. The fuel qualifies for substantial Carbon Credits under the Federal Renewable Fuel Standard Program and under the California Low Carbon Fuels Standard.

About Louisiana Green Fuels

Louisiana Green Fuels is the first of a series of projects by Strategic Biofuels LLC in Caldwell Parish, Louisiana. Located at the Port of Columbia, the plant will produce renewable diesel fuel from Renewable Fuel Standard compliant forestry waste and will produce all its own green power from sawmill and forestry waste materials. The plant and its accompanying Class VI Carbon Capture and Sequestration (CCS) Wells will produce renewable diesel fuel with a carbon footprint that is nearly a 400% reduction compared to fossil diesel, making it the most deeply carbon-negative liquid fuel in the world. READ MORE

$1.1 Billion Tax-Exempt Bonds for Strategic Biofuels Project Approved by the Louisiana Community Development Authority (Strategic Biofuels/Business Wire)

Excerpt from Strategic Biofuels/Business Wire: Underwritten by Citigroup, the authorization to issue these bonds to help finance the Louisiana Green Fuels project reflects latest milestone for the world’s lowest carbon footprint liquid fuel plant --

Strategic Biofuels, the leader in developing negative carbon footprint renewable fuels plants, announced today that the Louisiana Community Development Authority’s (LCDA) Executive Committee voted unanimously to adopt a resolution granting final approval for the issuance of up to $1.1 billion of its Revenue Bonds to finance a portion of the Louisiana Green Fuels project (LGF). The utilization of waste materials to produce fuels enables the LGF project to utilize these tax-exempt municipal bonds. Citigroup Global Markets Inc., the investment bank and financial services company, has been engaged to serve as the underwriter of the bonds and will be responsible for marketing the bonds to investors.

“Over the course of 2022 we have aggressively advanced the LGF project across multiple dimensions. This latest bond cap approval substantially enhances the project financing structure by providing low interest rate project debt,” said Dr. Paul Schubert, CEO of Strategic Biofuels. “We greatly appreciate the confidence in the project tangibly expressed by the LCDA in their unanimous approval of this increase.”

The LCDA is a statewide Conduit Issuer of revenue bonds and is authorized to issue bonds to finance economic development, industrial and manufacturing facilities, and a variety of projects on behalf of local governmental entities throughout the State of Louisiana. Although the State of Louisiana authorizes the issuance of the bonds, they are not guaranteed by the State or the LCDA nor are taxpayer dollars involved. To date, Strategic Biofuels has received $450 million in total bond allocations, $200 million for 2020 and $250 million for 2021. The Company anticipates receiving substantial additional allocations over the next two years.

“We are happy to play a part in this important transaction for the economic impact it will have in Caldwell Parish and the entire Northeast portion of the State of Louisiana,” said Ty E. Carlos, Executive Director of the LCDA.

The increased bond cap approval complements the positive financial impact on the LGF project from the recent Inflation Reduction Act. In particular, the Act increased the 45Q Sequestration Tax Credit from $50 to $85 per metric ton of CO₂ for the approximately 1.4 million tons of CO₂ per year expected to be sequestered. This adds to project revenues from the sale of the 32 million gallons of renewable fuel, credits under the Federal Renewable Fuel Standard (RINs), credits under the California Low Carbon Fuels Standard (LCFS), and applicable Federal Blender’s Tax Credits (BTC) or Production Tax Credits (PTC). These revenue streams provide the deeply carbon negative project with exceptionally robust economics.

“The mission of the LCDA is to assist municipalities, 501c3, and private activity entities, like Louisiana Green Fuels, in issuing bonds for the construction of economic development projects, infrastructure and environmental facilities. This project fits in perfectly with our mission,” said David Rabalais, Chairman for the Executive Committee of the LCDA.

The State Bond Commission granted its approval for the $1.1 billion bond cap at its July 21 meeting and in August, the approval of the Louisiana Community Development Authority was the final approval necessary to allow issuance of the bonds up to that cap. The project expects to issue the bonds in late 2023. The news of this issuance comes quickly after the Strategic Biofuels team recently shared additional support coming from the Department of Homeland Security and FEMA through their Port Security Grant Program in the form of a $1 million grant. READ MORE