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.

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."

The project is being developed by New Rise Renewables Reno LLC.