As U.S. early-stage funding sources become less abundant and more difficult to access, advanced biochemical and biofuels companies face increased financing difficulties when trying to develop first commercial facilities. Recently, however, companies started to employ new solutions to their funding challenges: turning abroad for their early stage financial assistance. Some facilities in the industry are employing financial tools like tying bonds to credit-enhancements, and constructing pilot and demonstration plants in countries that want to support these new technologies, like Australia, Canada and the United Kingdom.
Twelve new U.S. advanced bio-based chemical and biofuel facilities have already qualified for such funding through the use of innovative financing mechanisms invented and developed by a creative team of lawyers and investment bankers in the US. Additionally, nine of the twelve are headed toward closing and three projects already began operations.
Still, many advanced biochemical and biofuels technologies struggle with growing financings issues in the U.S. and, as such, are taking their early stage technologies abroad for available funding.