Louisiana Green Fuels Fund Updates > LGF Pre-launch Project Preview
Ballast Rock has been awarded the exclusive mandate to raise Stage 2 development capital for the Louisiana Green Fuels (“LGF”) facility by the developer Strategic Biofuels. As we complete our due diligence and prepare all required information to formally launch the fund, we wanted to give you a preview of the project (Click Here for project presentation).
The upcoming BR Ventures LGF Fund offers attractive risk-adjusted returns and will deliver on the Ballast Rock Venture commitment to provide our investors democratized access to unique investments with a positive social impact.
The LGF project is a great fit for Ballast Rock Ventures
- Positive Ecological Impact: As well as producing biodiesel and naphtha from forestry waste, the plant will sequester CO2 through a Class VI sequestration well, which will make it one of the most negative Carbon Intensity diesel fuel projects in the United States (if not the world).
- Returns: The project currently expects a 23% unlevered internal rate of return (“IRR”) which when levered offers 40%+ IRR to investors (differing by stage of investment). Click Here for pro forma project financials. Because of its negative Carbon Intensity, LGF will generate a significant amount of both Federal and State carbon tax credits, which drives the attractive risk-adjusted returns of the project.
- Location and Unique Access: The project is in the Sunbelt (Caldwell Parish in Northeastern Louisiana), and therefore within Ballast Rock’s core geographic focus. My father’s family come from Caldwell Parish, so we are uniquely connected to the area and some of the LGF executive team. I am a Stage 1 investor in the project along with several of my Louisiana family.
- Positive Social Impact: The project will be formative for Northeastern Louisiana, creating hundreds of construction jobs, 70+ well paid permanent jobs running the facility, and up to an estimated 400 indirect full-time jobs in the community. This project exemplifies how the application of innovative technology and private investor capital can turn fossil fuel jobs into new green and sustainable jobs.