HOBO Renewables, a developer of renewable diesel projects, is working with SMBC to raise project financing for a project in the Midwest, sources told ReSource.
The project financing capital raise amounts to $1.7bn of debt and equity for the facility, the sources said.
While the sources declined to give the location of the plant, HOBO has applied for permits for a 9,300 barrel per day (120 million gallons annually) production facility in Clinton, Iowa.
HOBO in 2021 received a commitment for $600m of equity financing to build the project from Evolve Transition Infrastructure, the successor firm to Sanchez Midstream. The agreement is detailed in SEC filings, but Evolve was subsequently de-listed and appears to have been wound down.
The Iowa facility will produce finished renewable diesel fuel, renewable hydrotreated naphtha, and renewable jet fuel from various feedstocks like animal fats, used cooking oil (UCO), distillers corn oil (DCO), and soybean oil, according to the permit filing.
Permits for the project were initially received by HOBO in 2021, but the firm re-applied last year to extend the deadline for commencing construction and to remove a biogas flare from the project.
Representatives of HOBO Renewables and SMBC did not respond to requests for comment.
