Ecostrat Announces Partnership to Offer Feedstock Supply Insurance

BAC Member Ecostrat has announced a partnership with New Energy Risk to develop Feedstock Supply Insurance (FSI). FSI will mitigate risk in biomass feedstock supply chains by effectively capping feedstock costs and securing long-term project debt repayment obligations.

Biomass supply chains, especially in the forest sector, are a significant barrier to the rapid scaling of the trillion-dollar global bioeconomy. Bankable, long-term supply contracts are rare, and balance sheet project finance is difficult. Ecostrat’s new FSI will convert non-investment grade supply chains into bankable, investment-grade ones by transferring risk from project developers and capital providers to A-rated insurance markets, which will lower project debt costs, provide greater access to larger pools of capital and enable a more rapid scale-up of the global bioeconomy.

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