Since the early 1980's project finance has been an important model for developing
infrastructure projects around the world. Project finance provides access to more and lower
cost, long-term debt financing, which allows the private sector to increase its involvement in
managing and operating long-term energy assets and public infrastructure.
The key to project finance lies in the future cash flows of a stand-alone project. By mitigating the
risk of an interruption to the project's cash flows, the borrower can achieve a higher level of
funding and better financing terms. Key fundamentals include redundant supply sources, long-
term off-take agreements, and qualified builders and operators.
Transactions can be customized according to an existing set of cash flows or structured to meet a
new client's contract specifications.  Depending upon the scope of work, terms up to 30 years may
be available.  Some transactions may qualify for tax-exempt financing, which could result in a
significantly lower interest rate.
Targeted projects:






What is “waste-to-energy?”

     Waste-to-energy facilities produce clean, renewable energy through the combustion of
municipal solid waste in specially designed power plants equipped with the most modern pollution
control equipment to clean emissions.

    Trash volume is reduced by 90% and the remaining residue is regularly tested and
consistently meets strict EPA standards allowing reuse or disposal in landfills. There are 89 waste-
to-energy plants operating in 27 states managing about 13 percent of America’s trash, or about
95,000 tons each day. Waste-to-energy generates about 2,500 megawatts of electricity to meet
the power needs of nearly 2 million homes, and the facilities serve the trash disposal needs of
more than 36 million people. The $10 billion waste-to-energy industry employs more than 6,000
American workers with annual wages in excess of $400 million.

Why is waste-to-energy clean?

     America’s waste-to-energy facilities meet some of the most stringent environmental standards
in the world and employ the most advanced emissions control equipment available. The EPA
announced that America’s waste-to-energy plants produce “dramatic decreases” in air emissions,
and produce electricity “with less environmental impact than almost any other source of
electricity.” The “outstanding performance” of pollution control equipment used by the waste-to-
energy industry has produced “dramatic decreases” in emissions. EPA data demonstrate that
dioxin emissions have decreased by more than 99% in the past ten years, and represent less
than one-half of one percent of the national dioxin inventory. Mercury emissions have declined by
more than 95% and now represent two percent of the national inventory of man-made mercury
emissions. Additionally, EPA estimates that waste-to-energy technology annually avoids 33 million
metric tons of carbondioxide, a greenhouse gas, that would otherwise be released into the
atmosphere.

    Communities served by these facilities recycle an average of 35% of their trash as compared
with the national recycling rate of 30%. Waste-to-energy annually removes for recycling more than
700,000 tons of ferrous metals and more than 3 million tons of glass, metal, plastics, batteries,
ash and yard waste at recycling centers located on site.

Why is waste-to-energy renewable?

     For more than twenty years, waste-to-energy has been recognized as a source of renewable
energy under existing law. Waste-to-energy is a “clean, reliable, renewable source of energy,”
according to the U.S. EPA. The Federal Power Act, the Public Utility Regulatory Policies Act, the
Federal Energy Regulatory Commission’s regulations, and the Biomass Research and
Development Act of 2000 all recognize waste-to-energy power as renewable biomass, as do
fifteen states that have enacted electric restructuring laws. EPA estimates 75% of trash contains
biomass on a Btu-output basis. Turning garbage into energy makes “important contributions to
the overall effort to achieve increased renewable energy use and the many associated positive
environmental benefits,” wrote Department of Energy Assistant Secretary for Energy Efficiency
and Renewable Energy, David Garman.

What makes waste-to-energy reliable?

     Waste-to-energy plants supply power 365-days-a-year, 24-hours a day. Facilities average
greater than 90% availability of installed capacity. Waste-to-energy plants generally operate in or
near an urban area, easing transmission to the customer. Waste-to-energy power is sold as “base
load” electricity. There is a constant need for trash disposal, and an equally constant, steady, and
reliable energy generation. Waste-to-energy promotes energy diversity while helping cities meet
the challenge of trash disposal.


How does waste-to-energy produce clean energy from dirty garbage?

     Waste-to-energy facilities achieved compliance in 2000 with new Clean Air Act pollution control
standards for municipal waste combustors. More than $1 billion was spent to upgrade waste-to-
energy facilities, leading EPA to write that the “upgrading of the emissions control systems of large
combustors to exceed the requirements of the Clean Air Act Section 129 standards is an
impressive accomplishment.” In addition to combustion controls, waste-to-energy facilities employ
sophisticated pollution control equipment.

A “bag house” works like a giant vacuum cleaner with hundreds of fabric filter bags that clean the
air of soot, smoke and metals.

A “scrubber” sprays a slurry of lime into the hot exhaust. The lime neutralizes acid gases, just as a
gardener uses lime to neutralize acidic soil. Scrubbing also can improve the capture of mercury in
the exhaust.

“Selective Non-Catalytic Reduction” or “SNCR” converts nitrogen oxides – a cause of urban smog
– to harmless nitrogen by spraying ammonia or urea into the hot furnace.

“Carbon Injection” systems blow charcoal into the exhaust gas to absorb mercury. Carbon
injection also controls organic emissions such as dioxins


Ash residue from waste-to-energy facilities represents about 10% by volume of the original trash.
The ash is tested in accordance with strict state and federal leaching tests and is consistently
shown to be safe for land disposal and reuse. Ash makes good cover in landfills because it
exhibits concrete-like properties causing it to harden once it is placed and compacted in a landfill,
reducing the potential for rainwater to leach contaminants from trash landfills into the ground.
Nearly 3 million tons of waste-to-energy ash is beneficially reused as landfill cover, roadbed or
building material.