Export Finance Australia provides finance solutions to exporters, or businesses in an export-related supply chain. For Biogass Renewables – it was just the finance support they were looking for.
Biogass Renewables specialises in the construction and operation of bioenergy plants. Using a technology known as anaerobic digestion, the plants convert organic matter like food and agricultural waste into biogas. This can then be used for electricity generation, heating and even converted to natural gas.
Since constructing its showcase plant in Western Australia, Biogass Renewables has built a pipeline of construction projects throughout Australia. One of those key opportunities is to install an onsite bio-generator for a major Australian grain business, enabling them to generate their own electricity and expand their operations to increase their exports.
Biogass Renewables Director Hamish Jolly explained that while his business wasn’t a direct exporter in this project, their work was a critical part of their customer’s export supply chain.
Securing finance in a supply chain capacity
To secure the project, Biogass Renewables found it advantageous to secure finance to provide securities under the construction contract. After comparing options from the insurance markets and the major banks, the business decided to progress with our finance solutions.
“Export Finance Australia was the best of the three options in the context of this project as it was project-specific and they had a good understanding of our requirements,” said Jolly.
The right security at the right time
We provided Biogass Renewables with a Performance Bond and a Warranty bond totalling A$850,000. “They provided the key finance for our construction contract”, said Jolly.
Throughout the application process, Jolly worked closely with Cameron Hall, our Senior Business Development Manager.
“Cameron was very proactive in making the loan happen and taking us through the application process,” Jolly said. “The due diligence process on us was robust and at the right level for the scale of the project.”
After securing finance as a business in an export-related supply chain, with our support, Biogass Renewables is now expecting to be a direct exporter of their technology with construction contracts overseas.
“Export Finance Australia enabled us to get our domestic project underway, which underpinned our pipeline growth and provided us with a platform for our first export project,” Jolly said.