Greater Seattle Area Becoming Hotbed for Sustainable Aviation Fuel (SAF) Projects & Investments
Over the past year, executives at Northwest Advanced Bio-Fuels LLC, (NWABF), have spent a lot of our time educating potential investors about the NWABF SAF project in Grays Harbor, WA.
It’s time for interested SAF industry investors and the developers and builders of SAF Projects to work together more closely. All parties need to get more aligned in understanding the full scope of these projects.
Lower carbon footprints are being “mandated” by governments around the world. Investor Analysts need to look for the answers to the opportunity and solutions to “why they want to invest”. Don’t simply abandon the opportunity because of a few challenges. There is “Proof of Concept!”
We would like to share our findings to help continue the successful growth of this industry. We see that the SAF industry needs more success!
There are two vital entities – Lender/Investors from world-class companies and Developers from every part of the Renewable Fuel industries, both requiring each other’s cooperation. How do we work together to create more successful SAF projects?
Project investors in the industry need larger and more risk-mitigated transactions to fund, and the Developers need to incorporate this mindset in their presentation to the financial community, backed by the facts.
Greater Seattle is becoming the epicenter for SAF, but there are areas of needed knowledge for the investor market to further advance the growth of SAF projects in the Northwest. Here are a few areas for consideration:
- Outline the tremendous upside potential of the Project in the industry. Explosive growth is expected based on Governmental mandates in place. These mandates are increasing all over the world.
- Point out the many similarities that this project has to their typical investment projects in Oil & Gas, as similar technologies and companies are involved, with decades of proven performance.
- Focus with investors on risk mitigation that occurs during the initial developmental engineering phases. It’s this last part that we noticed hesitation with some investors. There is no more risk with SAF than there is with Oil & Gas. Focus on presenting these facts.
As a direct result of focusing on these priorities, NWABF has seen over a half-dozen Term Sheets from world-class investors and recently received an acceptable Term Sheet from one of the largest Infrastructure and Energy Investment firms in the world.
SAF vs. Oil & Gas (O&G)
To that end, it is important that investors start to see the SAF engineering process much in the same way as they would for any large O&G project.
There is an equal amount of risk involved with developing SAF projects vs. O&G. Our approach to the engineering and design phases has proven to be successful, but this was an education process to get here.
By following our own advice, NWABF has engaged world-class Technology Partners. The technology is commercially proven and mitigating perceived risks has resulted in multiple funding options. It validates our Team’s beliefs that supplying verifiable data and analysis on these risk issues, as well as providing enough data to validate our Financial Projections, gets the job done.
We want to contribute to the establishment of the SAF industry in the Grays Harbor, Washington area, eliminate the barriers to SAF funding, and move boldly ahead to facilitate broader production. NWABF is prepared and ready to develop projects to contribute to the growth of a carbon-free future. Our time is NOW!
Merry Christmas and Happy Holidays to you! Looking forward to exciting developments in 2021!
David P. Smoot
David Smoot has an extensive background in Project Development, including the Financing and Technology Integration for those Projects. Mr. Smoot also held positions of upper management with leading companies in the Computer Software and Hardware industries, including the Financing and Leasing industries specifically related to those industries prior to moving into the renewable energy industry which morphed into renewable fuels. Smoot has created a turnkey solution model not yet seen in the industry.