Enquiry Form

Please fill in details below
Case Study

Biofuels

The Biofuels industry has seen a rapid rise as climate change initiatives are adopted by governments, the energy sector and several large greenhouse gas emitting sectors.

Biofuels are transportation fuels produced from renewable, biologically derived materials such as agricultural crops, crop residues, and organic wastes. They differ from traditional fuels such as petrol (gasoline) or diesel, which are produced from non-renewable, fossil-based crude oil. Biofuels are widely used around the world, with large-scale industries established in North and South America, Europe and across Asia.

Sites in Discovery
$m
Per site financing
Gallantree Biofuels

We see investment documents every day, but very few meet the standards and details set by the Gallantree team.

Deal Structure

For Biofuel Developments, initially sites are investigated that meet specific requirements including close proximity to key agriculture raw material supply, and operators that have a strong background in operating a biofuels facility.

Gallantree Biofuels Model

Circular Economy Modelling

Generally, a Biofuels facility can have multiple use cases, often complimenting each other or surrounding facilities.

With this in mind, developers can bring together a network of operators which, as part of the development cost can contribute to the design, execute lease arrangements and purchase the output of electricty of fuel once operating.

When structuring this investment type, a flow through funds model can unlock capital required to service the construction costs as these assets are in demand and have long term economic benefits to the investors and local community.

Gallantree Biofuel structuring

Typical Structuring

For structuring of the finances and construction costs, due to the size, only one Senior Lender is required and profit discovery funds were utilised upfront for the initial discovery and feasibility phase.

Once built, the asset is acquired for a fixed amount and the client begins the next development site.

Disclaimer

Nothing in this analysis is to be taken as specific financial advice. All pictures or images herein are for illustrative purposes only and in support of subject analysis and research. An effort has been taken to ensure accuracy, use of the information contained herein is at ones own risk. To the fullest extent permitted by Australian law, Gallantree disclaims all liability for any losses, costs or damages sustained or incurred as a result of the use or reliance upon this information contained herein, including, without limitation, liability stemming from reliance which may contain inadvertent errors or omissions. Any opinions expressed in this document are subject to change without notice.