Dive Brief:

• BlueFire Renewables, a biofuel firm that converts organic plant waste into fuel, announced that the Export-Import Bank of China has issued the company a letter of intent that extends a loan of $270 million to the firm.
• The Irvine, CA-based BlueFire was considering shutting its doors due to investors’ doubts about turning a profit, a loss of Department of Energy grants, and tightening credit from banking institutions in the U.S.
• The loan will be used toward the construction of the company’s first commercial plant, a $300 million facility slated to break ground in Fulton, MS.

Dive Insight:

BlueFire Renewables transforms wood waste, yard clippings, and agricultural residue into ethanol. The MA-based plant will be the first of five built across the U.S., with more facilities expected to be established in China as well. 

The Chinese initiative comes on the heels of an overall retreat from developing biofuels. Venture capitalists, energy companies, and the U.S. government have been steering clear of biofuels due to the high costs associated with research and development in the area.