The Sponsor

Infinium Holdings is a Texas-based gas-to-liquids energy technology company that is leading domestic commercial production of Efuels—ultra-low-carbon synthetic electrofuels that can replace conventional petroleum-based fuels. By developing lower-cost, accessible fuel for high-demand sectors like aviation, marine shipping, and heavy-duty trucking, Efuel products also help diversify the fuel supply chain and strengthen U.S. energy security.

The Project

Project Roadrunner is the development of a $288 million Efuel production facility on a 40-acre brownfield site in Pecos, Texas. In converting a decommissioned facility, the project will support a nearly 10-fold increase in Infinium’s energy production and significantly contribute to broad efforts to expand the availability of alternative fuels in North America and Europe.

The project is tapping a $24.5 million package of federal New Markets Tax Credits (NMTCs) to help finance hydrogen production equipment and a power substation. It includes Broadstreet’s commitment of $4.5 million in NMTCs from the Local Initiatives Support Corporation (LISC). Additionally, Broadstreet is investing nearly $7.5 million from the Morgan Stanley Rural NMTC Fund, which it manages, and providing more than $17 million in short-term bridge financing.

The Broadstreet commitments are specifically designed to expand quality jobs in an area where unemployment is more than double the national average and to grow the rural economy in and around Pecos. The project will have a strong ripple effect on local incomes in the region, as it draws on materials and services from other businesses—helping them increase their revenues and employment base as a result.

In addition to Broadstreet/LISC, other NMTC commitments to the project come from AMCREF Community Capital and Cadence Bank.

The Impact

Without NMTC financing, the scope, scale and timing of this project would have likely faltered. Though conventional equity was available for the project, traditional debt was not—in large part because this is an innovative “pre-revenue” business model with large, non-deferable up-front costs. It left a funding gap.

NMTCs brought affordable financing to the project, helping Infinium create 32-35 new full-time jobs, an estimated 301 construction jobs and a workforce development program operated with Odessa College to help train workers and fill positions—all in a community with high levels of poverty.

At the same time, by cleaning up a contaminated site and returning it to productive use, the project is broadening the tax base for Pecos and Reeves County—supporting a range of public services for residents that might not otherwise be possible.