New Energy Risk Develops Performance Insurance For TCG Global, Supporting Delivery and Installation of TCG's Revolutionary Gasifier
Jun 21, 2018, 11:00 ET
TCG to deploy first-of-its-kind gasification technology at Red Rock Biofuels LLC's waste wood-to-fuel project in Lakeview, Oregon
MENLO PARK, California, June 21, 2018 /PRNewswire/ -- Today, New Energy Risk, a provider of technology performance insurance solutions for renewable energy projects, is announcing the creation of an insurance product for TCG Global, LLC ("TCG Global"), a leader in gasification technology and design. This novel insurance product will cover TCG Global's high efficiency gasifier as it is field-tested and installed, beginning with the Red Rock Biofuels LLC's ("Red Rock Biofuels") Lakeview, Oregon plant. This waste wood-to-fuel facility is slated to produce 15 million gallons of renewable diesel, jet, and gasoline blendstock fuels per year for partners such as Southwest Airlines and FedEx.
In order to cover delivery and installation of its gasifiers and reduce uncertainty for new customers, TCG Global turned to New Energy Risk and its affiliates. New Energy Risk's custom insurance solution not only accelerates time to market but also provides support for TCG Global in terms of warranting and insuring performance through delivery and startup of the gasifier. This support greatly mitigates the gasifier technology risk to project financing partners and other stakeholders.
"New Energy Risk has been a tremendous partner for us," said Creg Hughes, CEO of TCG Global. "Insurance was the critical element in supporting the performance of our gasifier, and no other team had the ability and dedication to understand our technology and creatively structure insurance around it, thereby creating a financeable product we could provide to Red Rock Biofuels."
"TCG's gasifier presents the best gasification technology for producing fuels with this feedstock," said Jeff Manternach, CFO of Red Rock Biofuels, "However, at this first commercial scale, the financing partners wanted additional security around the performance of the technology. New Energy Risk's insurance solution completed the package, allowing us to move forward."
"Our team at New Energy Risk, with the support of our XL Catlin insurance affiliate, has developed extensive expertise in gasification technologies and is deeply dedicated to bringing TCG's best-in-class gasifiers to market, at scale, beginning with Red Rock Biofuels this year," said Tom Dickson, CEO of New Energy Risk. "TCG Global is one of the leaders in gasification technology and we look forward to supporting their roll-out and fostering increased customer adoption."
New Energy Risk is a leading specialty insurance technology company that enables efficient financing and risk management for emerging renewable technologies. For this project, New Energy Risk synthesized scientific understanding, engineering analysis, as well as actuarial and financial expertise to assess the output and efficiency of TCG Global gasifiers. After its extensive evaluation of TCG Global technology, New Energy Risk developed a custom insurance solution for its gasifiers, provided by a licensed insurance affiliate of XL Catlin Ltd., a leading global insurer. This innovative insurance program provides a significant technology risk mitigant for both TCG and Red Rock Biofuels, allowing the companies to commence construction of the Lakeview, Oregon project.
To learn more, please visit www.newenergyrisk.com.
About New Energy Risk
New Energy Risk is a provider of innovative data analytics and technology performance risk transfer solutions to the new and renewable energy industry worldwide, and pioneered the development of large-scale technology performance insurance. It was founded in 2010 to provide complex risk assessment and serve as an effective bridge between clean-energy innovators and insurers, and is part of XL Innovate, an insurance technology venture fund. Since then, New Energy Risk has helped its customers gain over $1 billion in financing for renewable energy and new technology deployments.
About XL Catlin
XL Catlin is the global brand used by XL Group Ltd's (NYSE: XL) insurance and reinsurance companies which provide property, casualty, professional and specialty products to industrial, commercial and professional firms, insurance companies and other enterprises throughout the world. Clients look to XL Catlin for answers to their most complex risks and to help move their world forward. To learn more, visit xlcatlin.com.
About TCG Global
TCG Global LLC (TCG) designs, builds, sells, owns, and operates gasification plants capable of converting any carbon-containing feedstock such as biomass, coal, petroleum coke, or municipal solid waste into synthesis gas. The Syngas produced by this gasification process is a clean, dry, flexible fuel which can be burned to create heat and electricity; passed through any of several different catalysts to produce fluids such as alcohols and transportation fuels, including clean burning diesel; or used to supply pure hydrogen gas for multiple applications.
About Red Rock Biofuels
Red Rock Biofuels ("RRB") was founded in 2011 and is positioned to be the leading producer of drop-in, renewable, low-carbon jet and diesel fuels. With broad international agreement in the aviation industry for carbon-free growth beyond 2020 under CORSIA, airlines are actively seeking low-carbon jet fuel to reduce their greenhouse gas emissions. To meet these high demands for low-carbon renewable fuels, RRB will build a global portfolio of biorefineries to convert waste woody biomass into renewable jet and diesel fuels. Through a proprietary integration of existing technologies, RRB makes the long-commercialized Fischer-Tropsch process economic at the biomass scale. And by using forest and sawmill residues, we will not only avoid competition for agricultural resources, but also reduce the risk of catastrophic wildfires by removing waste biomass from overgrown forests.
SOURCE XL Catlin