Sapphire Energy Pays Off Government Loan Guarantee
Tuesday, July 30, 2013
USDA and Sapphire Energy Partnership Demonstrates Effective Use of Taxpayer Money and U.S. Technology Leadership
(San Diego, CA) – Sapphire Energy, Inc. today announced it has paid off the entire loan guarantee awarded to the company by the U.S. Department of Agriculture. In Dec. 2009, the company was awarded a $54.5 million loan guarantee through the Biorefinery Assistance Program, administered by the USDA Rural Development-Cooperative Service, to build a fully integrated, algae-to-crude oil commercial demonstration facility in Columbus, N. M. In partnership with the USDA and the U.S. Department of Energy, Sapphire Energy developed and implemented its facility, known as the Green Crude Farm, on time and on budget. Today, the Farm is operational and producing renewable crude oil on a continuous basis.
As a result of the USDA’s loan guarantee and USDOE’s support, Sapphire Energy is now producing the world’s first renewable crude oil, and is in the process of scaling up the technology. The operational crude oil farm has led to additional investment in the company and commercial partnerships. The company repaid the remaining loan balance in full after receiving additional equity from private investors, making the loan no longer necessary to complete the next, planned phase of development. The early repayment of this loan and on-target development roadmap for Sapphire Energy’s algae crude oil technologies further solidifies the USDA’s role in catalyzing new energy technologies in rural communities, increasing domestic energy production, and creating new jobs. The USDA’s investment has advanced the use of algae as a feedstock to produce crude oil and as a viable new crop to produce homegrown energy while creating valuable rural economies.
“The investments being made in low-carbon biofuel production are paying off and moving technologies forward, which will produce savings at the pump for consumers, and spur sustainable, new-wealth creation here in the United States, and make our land more productive,” said Doug O’Brien, Acting Under Secretary for Rural Development.
“Sapphire Energy is very grateful to the USDA for supporting algae crude oil as an alternative source of energy as well as our vision to make this industry a reality,” said Cynthia ‘CJ’ Warner, CEO and chairman of Sapphire Energy. “With their backing, we did exactly what we set out to do. We grew our company, advanced our algae technologies, and built, on time and on budget, the first, fully operational, commercial demonstration, algae-to-energy facility that delivers a proven process for producing refinery-ready Green Crude oil. We could not have built this first of a kind facility without the support of the USDA. Moving forward, our focus is on commercializing our technology and expanding operations to bring crude oil production to commercial demonstration scale as planned.”
About Sapphire Energy
San Diego-based Sapphire Energy is pioneering an entirely new industry – Green Crude production – with the potential to profoundly change America’s energy and petrochemical landscape for the better. Sapphire’s products and processes in this category differ significantly from other forms of biofuel because they are made solely from photosynthetic microorganisms (algae and cyanobacteria), using sunlight and CO2 as their feedstock; are not dependent on food crops or valuable farmland; do not use potable water; do not result in biodiesel or ethanol; enhance and replace petroleum-based products; are compatible with existing infrastructure; and are low carbon, renewable and scalable. Sapphire has an R&D facility in Las Cruces, New Mexico, and is currently operating the first Integrated Algal BioRefinery in Columbus, New Mexico, continuously since May 1, 2012.