Financing an algae biofuels project requires a substantial amount of capital. The financing sources for an algae biofuels project broadly fall into two main categories: equity and debt. The availability of equity or debt for the project often depends on the stage of project development. In addition, making maximum use of available tax incentives and other government incentives may have a significant impact on the overall project financing package. Government grants, including those under the American Recovery and Reinvestment Act of 2009 (“ARRA”), also present potential funding opportunities for developers of algae biofuels projects.
Tax Incentives and Other Tax Considerations