Fiberight LLC, Cantonsville, Maryland, has announced the completion of a $70 million project financing for its municipal solid waste (MSW) processing facility being constructed in Hampden, Maine. The project financing included a $45 million Finance Authority of Maine (FAME) tax-exempt bond issuance underwritten by Jefferies LLC, New York City, and $25 million in private equity. Phase I facility construction for the Hampden facility started in October 2017 with a focus on sitework and building construction.
“Our Phase I construction is largely complete,” Fiberight CEO Craig Stuart-Paul says. “Now that we have closed bond financing, we are able to maintain our pace of construction and plan to start accepting waste from our municipal customers in the second quarter of this year. We are working with the MRC (Municipal Review Committee) and our customers to manage a smooth transition as we begin bringing waste to our facility.”
The 180,0000-ton per year project converts MSW into biofuels. This process, technology and approach has been proven through testing at Fiberight’s demonstration plant and throughout Europe, the company says. The facility features a materials recovery facility (MRF) with additional processes for generating clean cellulose, engineered fuels and biogas from traditionally nonrecyclable materials.
“Fiberight’s disruptive waste processing technology enables a high degree of separation, recovery and monetization of commodity products as never before achieved,” Steven Davey, Fiberight’s chief operating officer, says. “We project that our platform will allow municipalities and private waste haulers a sustainable waste recovery solution that will reduce dependence on landfilling and other less sustainable disposal alternatives”.
The Hampden project will serve 83 municipalities and public entities represented by the MRC, a nonprofit organization that currently manages the waste disposal activities in Eastern and Northern Maine. Fiberight was selected by the MRC after an evaluation of Fiberight’s process, throughput design, public/private contract structure and potential to divert up to 80 percent of incoming waste from disposal. As a result, Fiberight was awarded a 15-year contract with participating MRC municipalities. The company plans to process MSW from other municipalities and commercial clients under separate contracts.
“This project represents the very best of what can be achieved through a public/private contract, and I wish to thank the MRC for its foresight, support and hard work along the way,” Stuart-Paul says. “Now its full speed ahead to deliver on the tremendous opportunities for next generation recycling made possible by this world-class facility”
In addition to the bond financing, Fiberight has secured project finance commitments that will enable it to build additional projects. The company is currently working with several municipalities and private waste haulers in the planning of future advanced waste recycling projects.