Sourcing Renewables  -  July 26, 2021

Zume Plans Biofuel-Powered Manufacturing Facility

Zume will soon be building the first sustainable packaging factory powered 100% by an onsite renewable energy generator in North America thanks to a $122 million bond that was finalized on July 22.

The bond financing was closed by Hilltop Securities and Jefferson Enterprise Energy in two tax-exempt transactions: the first for $22 million and the second for $100 million. The pair also plan to add a third transaction for an additional $100 million in 2022 to further develop the complex.

Jefferson recommissioned a 55 MW biomass power plant that will provide energy for a renewable fiber pulping facility and the Zume’s robotic machinery and advanced molded fiber operations.

“To fix the unsustainability in the food supply chain, it is important that we design not only for the sustainability of products, but also the way in which we build them,” Alex Garden, chairman and CEO of Zume, said in a statement. “This will be a blueprint for the making of an entirely sustainable packaging system and we’re proud to secure this funding to scale our vision.”

The facility will feature a 400 ton per day pulp mill that can produce high-strength renewable pulp from wood waste and agricultural waste materials. This pulp will go on to power Zume’s operations manufacturing renewable fiber products in Texas.