Summary of Client & Challenge They Faced
A large oil refiner in Texas sought to initiate renewable diesel and possibly bio jet fuel production at an existing petroleum refinery. The refinery was currently supplying trucking and aviation markets with petroleum-based fuels in this range. To fund their expansion into renewables, the refiner applied for a USDA Section 9003 Loan Guarantee.
The level of full disclosure or due diligence set by the USDA requires a comprehensive view of the success or failure likelihood. As a result, the refiner required a detailed analysis of the technologies, feasibility, and related USDA 9003 Program metrics and requirements. In addition, an independent review of the refiner’s proposed investment in renewables was necessary to be eligible for the loan guarantee.
Our Approach to the Solution
The LEC team included former USDA leadership, skilled engineers, marketing analysts, and experts in feasibility. Having represented both sides of the table, the LEC team was well-positioned to help the oil refiner address any challenges in the due diligence process.
Our experts provided arm’s length leadership throughout the process for the oil refiner and all relevant parties supporting the expansion into renewables production. LEC coordinated with the technology provider, financial and accounting firms, management consultants, and local governments on the numerous requirements a USDA 9003 applicant must fulfill.
Client Results & Benefits
With the extensive USDA 9003 experience and industry knowledge of the LEC experts, the oil refiner satisfied the level of due diligence required for the 9003 Program and met all the USDA criteria for the loan guarantee. The independent leadership of the LEC expert team directly contributed to satisfying the requirements of the USDA 9003 Program and allowed the oil refiner to stay focused on their core business while evaluating their expansion into renewables.