Northeast Biodiesel secures $1.3 million funding to start biodiesel production in Greenfield, MA facility
Organized as a worker-owned cooperative, Northeast Biodiesel demonstrates its commitment to economic, social and environmental justice by producing biodiesel from used cooking oil
Greenfield Mass., June 6, 2022 – Northeast Biodiesel Corporation LLC (Northeast Biodiesel), a Massachusetts-based worker-owned cooperative, completed the funding of the startup of its 1.75 million gallon per year biodiesel facility located in Greenfield, Massachusetts. This funding allows the company to commence the production of US biodiesel standard ASTM D6751 compliant biodiesel at the completed Greenfield facility by processing used cooking oil, and is expected to accelerate Northeast Biodiesel’s plans to expand its annual production capacity to 3.5 million gallons gallon per year to supply local and regional markets with a cleaner alternative to petroleum-based diesel fuel.
This funding also included the completion of the restructuring of Northeast Biodiesel balance sheet that resulted in reduced indebtedness and a streamlined capital structure. The plant in the Greenfield Industrial Park was fully operational in 2018 but did not have the funding to hire workers or purchase feedstock. The process of raising new funding required patience and understanding from the existing investors, who are primarily local individuals making small investments to improve the local economy. As board chair Sam Bartlett explained “Most conventional bottom-line oriented business would not have persevered this long, but our board and our investors and lenders are really determined to have more local control over our energy production, and to provide good local jobs. It is especially exciting to have a plant that is staffed by people who will have an ownership stake in the business."
The lenders in this round were The Life Initiative (TLI), Massachusetts Development Finance Agency (MassDev), Local Enterprise Assistance Fund (LEAF), Franklin County CDC (FCCDC), Cooperative Fund of the Northeast (CFNE), and other community members and stakeholders.
Dorian Gregory, Deputy Executive Director of CFNE said “Cooperative Fund of the Northeast is excited to collaborate in financing the launch of this multi-stakeholder cooperatively-owned clean energy project. This is a great example of solidarity among many people and organizations over many years to prioritize bringing solutions to the climate crisis through quality jobs and shared community ownership.”
Elevate Small Business, the technical assistance arm of LEAF, acted as the financial advisor to Northeast Biodiesel. Legal assistance was provided by Jason Wiener p.c., based in Cambridge, MA & Shoreham, VT, Moulton Law Group of Burlington VT and Flanders Law Offices in Shelburne Falls, MA.. Wellspring Cooperative of Springfield, MA provided cooperative development assistance.
More about Northeast Biodiesel:
Northeast Biodiesel, LLC, (www.northeastbiodiesel.com) is a biofuel manufacturing company with a plant in Greenfield, Massachusetts, committed to producing high quality, renewable fuel in the most sustainable way: with recycled cooking oil. The premium biodiesel that Northeast Biodiesel will be producing can be used in any oil heat system or diesel engine reducing carbon emissions, improving engine performance, and improving air quality. Northeast Biodiesel has contracted with NEB Workers Cooperative, a worker/owner cooperative, to provide services for the plant’s operation, with the intent that the of NEB Workers Cooperative will become owners of the plant, along with Northeast Biodiesel's majority owner, Co-op Power, (www.cooppower.coop). Coop Power is a renewable energy cooperative owned by consumers from around New England and New York.
More about our investors and advisors:
Local Enterprise Assistance Fund (LEAF) is a nonprofit community development financial institution (CDFI) that promotes human and economic development by supporting the growth of cooperatives and social enterprises. Based in Boston, LEAF's loan fund provides financing for co-ops nationally. LEAF's technical assistance program, Elevate Small Business, offers consulting and capital advisory services to women- and minority-owned enterprises and mission-aligned businesses, such as Northeast Biodiesel.
“Northeast Biodiesel demonstrates the power of community-based initiatives in tackling major challenges such as economic justice and climate change. LEAF is honored to have stood by and offered its support to the Northeast Biodiesel community.”
- Amine Benali, Managing Director
MassDevelopment, the state’s development finance agency and land bank, works with businesses, nonprofits, banks, and communities to stimulate economic growth across the Commonwealth. During FY2021, MassDevelopment financed or managed 416 projects generating investment of more than $1.86 billion in the Massachusetts economy. These projects are estimated to create or support 6,578 jobs and build or preserve 1,909 housing units.
“MassDevelopment is proud to join with lending partners and clients who recognize that the climate crisis demands our immediate attention,” said MassDevelopment President and CEO Dan Rivera. “Our affordable financing solutions can help innovative clean energy companies like Northeast Biodiesel purchase equipment, fund expansions, and create quality jobs in Massachusetts.”
The Life Initiative (TLI) was established in 1999 with $100 million from MA based life insurance companies. To date TLI has invested over $600 million in projects that benefit low and moderate income communities and households, and defines itself as a dual bottom line fund.
“The Life Initiative is excited to be playing a role in the Northeast Biodiesel operations by providing startup capital and working capital support. This project encapsulates our mission to provide new job opportunities in the Commonwealth. This project has the added benefits of supporting employee ownership, reducing the local reliance on fossil fuels and making strides towards energy independence. We are honored to partner with an organization like Northeast Biodiesel and look forward to future projects in Greenfield and beyond.”
Brandon E. Braxton, Vice President, The Life Initiative
The Cooperative Fund of the Northeast, Inc., is a non-profit loan fund dedicated to a vision of economic justice for all through thriving cooperative enterprises. We work for economic, social, and racial justice by advancing community based, cooperative, and democratically owned or managed enterprises with a preference to assisting cooperatives in low-income communities by providing financial products at reasonable rates, developing business skills, and offering an investment opportunity that promotes socially conscious enterprise.
Headquartered in Greenfield, Massachusetts, the Franklin County Community Development Corporation (FCCDC) is an economic development non-profit organization providing comprehensive business development education, access to capital, commercial office and manufacturing space plus home of the Western Massachusetts Food Processing Center.
The FCCDC was formed in 1979 to maximize community control and our economic destiny. At that time, a number of manufacturing companies in the area were closing and moving elsewhere. The FCCDC has changed over the years as the needs of the community have changed. Yet our programs and activities are still geared toward stimulating a robust economy that closely fits our sense of place – our hills and valleys, and our towns and villages while expanding opportunities for all residents, especially those who have experienced challenges with access to capital.