Zilkha Biomass Fuels I LLC Completes $59.8 M Refinancing of the Zilkha Biomass Selma LLC Pellet Mill Operation in Selma, Alabama

Zilkha Biomass Fuels I LLC is pleased to announce the completion of a $59.8 M refinancing of the Zilkha Biomass Selma LLC pellet mill operation located in Selma, Alabama. The refinancing was completed on September 14, 2018.

Zilkha Biomass Selma LLC will use the funds to recommission and place the mill back in operation to produce Zilkha BlackTM Pellets for the power industry worldwide. Zilkha BlackTM Pellets are a biomass-based fuel used as a direct substitute for coal to support power plant operations and production of renewable energy.

The mill will start commercial operation of Zilkha BlackTM Pellets in the first quarter of 2019. The mill will produce 60,000 MT in the first year of operation, 200,000 MT in the second year, and 240,000 MT in subsequent years.

New capital will be used for new CAPEX projects and to provide working capital for the mill to build inventory for sale into the primary markets worldwide (Europe, Asia, Africa, and the Caribbean).

Product will be available for purchase and delivery in 1st Quarter 2019. Zilkha BlackTM Pellets have been successfully co-fired at rates up to 50% substitution for coal without changes to the processing equipment.

Zilkha Biomass Selma LLC will be the only large volume commercial mill producing black pellets worldwide.

In addition, Zilkha Biomass Fuels I LLC, the parent company of the Selma mill, is seeking operators worldwide who will utilize the patented Zilkha BlackTM Pellet technology in the US and abroad to supply the growing renewable energy markets.

Zilkha Biomass Fuels I LLC is a subsidiary of NextGen Black Pellets LLC and is headquartered in Houston, TX.