ATLANTA, GA, April 2, 2007 -- EnerTech Environmental announced today that the first commercial SlurryCarbTM facility in Rialto, California has completed financing and will begin construction immediately. The transaction, valued at $150 million, was financed through equity and a combination of tax exempt and taxable bonds. Deutsche Bank has agreed to purchase 100% of the bonds.
The Rialto SlurryCarb facility will convert 675 wet tons per day of biosolids from five municipalities in the Los Angeles region into approximately 145 tons per day of renewable fuel. The renewable fuel, called E-FuelTM, will be used by a local cement kiln as an alternative to coal. The facility's customers include the Orange County Sanitation District, the Sanitation Districts of Los Angeles County, and the cities of Rialto, Riverside, and San Bernardino.
"We are excited to have reached this milestone," said Kevin Bolin, EnerTech president. "EnerTech is ready to break ground on the Rialto project and begin the process of constructing a facility that will expand the renewable energy market in Southern California. We owe our success to our municipal stakeholders who made this dream a reality. We have successfully brought together five municipalities with the same vision of long-term sustainability, beneficial reuse, and protecting the environment. We are pleased to be working with Deutsche Bank, HDR Design- Build, Paperboy Ventures, LLC, North American Energy Services, Justice & Associates, Filanc, Pacific Growth Equities, LLC, and Lehman Brothers on this important project. We believe, along with all of our stakeholders, that this is the first of many SlurryCarb facilities."
Paperboy Ventures provided the Series A round and working capital necessary to bring this project to financial close. Pacific Growth Equities acted as financial advisor to EnerTech.
"Companies like EnerTech, that find new, eco-friendly solutions to industry challenges, are paving the way for the future," said Jin Matsumoto, Senior Vice President of Paperboy Ventures. "EnerTech and its partners have taken a monumental step toward reshaping the biosolids management and renewable energy sectors in North America and we are thrilled to have supported them through this venture."
"With this financing, EnerTech has the backing of its investors, partners, and municipal customers to make the SlurryCarbTM process a success on a large, commercial scale, providing both cost and environmental bottom line advantages to municipalities," said Gary Vollen, Managing Director of Pacific Growth Equities. "EnerTech is a great example of the types of companies that are emerging in the clean technology sector and we are pleased to be associated with the company."
A formal groundbreaking ceremony is planned for May 2007.
Deutsche Bank (NYSE: DB) is a leading global investment bank with a strong and profitable private clients franchise. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With EUR 1,126 billion in assets and 68,849 employees in 73 countries, Deutsche Bank offers unparalleled financial services throughout the world. The bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.
Deutsche Bank Securities Inc., member NYSE, NASD and SIPC, is the investment banking and securities arm of Deutsche Bank AG in the United States.
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See also:
-- "System creates renewable energy from biosolids"
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