Twain closes $136 million ground lease for renewable diesel plant
April 5, 2022
BY Twain Financial Partners
A $300 million renewable diesel refining facility cleared one of its remaining hurdles when it secured funding for the final phase of construction.
Twain Financial Partners has closed a $136 million ground purchase and leaseback arrangement for the Reno facility, marking the largest investment in Twain's nine-year history. The latest phase of construction will include a feedstock pretreatment facility, wastewater treatment facility, and an energy recovery system.
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The facility, which is expected to be completed by November 2022, will be able to produce 3,000 barrels of renewable diesel per day. Renewable diesel is a biofuel produced from fats and oils that is chemically the same as petroleum diesel.
The deal continues Twain's run of recent significant ground lease capital investments, which includes a $38 million financing for a hotel project in Minneapolis and a $27 million financing for a hospital project in St. Louis. It is also another foray into the renewable energy sector after Twain closed on $42 million in financing earlier this month for a solar farm in Texas.
"Our ground lease product has been very attractive to developers because it operates like a flexible bridge loan," said Will Purdy, Twain's Director of Real Estate. "By providing the unique option to buy back the land after a few years, and at a fixed, predetermined price, sponsors get all the short-term benefits of ground lease financing without the long-term commitment."
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The project is being developed by New Rise Renewables Reno LLC.
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