Milbank LLP advised HSBC on its project-based credit arrangement with Roadrunner One, LLC related to the development of a first-of-a-kind electrofuel (eFuel) facility. Roadrunner is an affiliate of Infinium, a leading global producer of commercially available eFuels.
HSBC, one of the world's largest banking and financial services organizations, served as the financial partner on the deal, acting as sole lead arranger, LC issuing bank, collateral agent and sole lender. The transaction highlights HSBC's commitment to supporting emerging decarbonization technology.
“This innovative financing highlights the strength of our project finance team and our experience with sophisticated, market-setting transactions,” said Dan Bartfeld, chair of Milbank’s Global Project, Energy and Infrastructure Finance Group.
“We’re fortunate to work with clients who are at the forefront of supporting unique energy transition projects,” said Milbank Global Project, Energy and Infrastructure Finance partner Sean O’Neill. “The production of synthetic fuels using renewable energy is a growing and vital component of the global energy sector.”
The Roadrunner project, located in Reeves County, Texas, will produce approximately 23,000 tonnes per year (7.6 million gallons) of synthetic sustainable aviation fuel (eSAF) and other low-carbon eFuel products using renewable electricity and captured carbon dioxide. It is among the first large-scale synthetic fuel facilities in the United States to secure institutional financing.
The Milbank team was led by Mr. Bartfeld and Mr. O’Neill and included associate Olivia Scandura.
