Arq closes $10 million funding from CTBI through USDA’s Business & Industry Initiative
Arq commits to further investment in local Kentucky projects
28th January 2021 – Today Arq announce that they have completed a $10 million expansion funding from Community Trust Bank, Inc. (CTBI) guaranteed by the USDA, for Arq’s Corbin, KY project. The loan has been awarded to Arq in support of their business plans and their vision to grow its global business by recovering valuable resources from waste.
This program improves the economic health of rural communities, like Corbin, by increasing Arq’s access to business capital. The USDA loan guarantees enabled Kentucky’s CTBI to provide affordable financing to Arq in support of local employment and development.
The proceeds include funding for the construction of a demonstration dryer and blending rig within the Corbin facility. This investment will help Arq to accelerate testing of marine fuels and the research and development of advanced carbon applications, as well as to recruit and retain a local employee base from rural Kentucky.
Arq’s plant in Corbin is mechanically complete and this expansion loan will also cover additional capital expenditure at the site allowing Arq’s facility to produce and ship finished products. Arq will process over three hundred thousand tonnes of mining waste per annum and transform it into a 99% pure, microfine hydrocarbon for the energy and industrial markets, as well as useful minerals for agricultural applications.
In October 2019, the US Department of Energy (DOE) and USDA announced an effort to cooperate to increase energy technology development and deployment in rural America.
Following a referral last year from the DOE, Arq started the funding process under the USDA’s Business and Industrial Loan Guarantee Program. This program is designed to increase access to business capital through loan guarantees by enabling commercial lenders to provide affordable financing for rural businesses.
Arq is an environmental energy technology company that recycles and transforms mining waste into an entirely new source of hydrocarbon. Through a combination of advanced chemistry and a tried-and-tested mechanical process, Arq separates pure hydrocarbon from mineral matter to create a microfine carbon powder. It has unique properties that make it valuable as an advanced carbon product in both the combustible and non-combustible markets. It can also be blended with oil products where it behaves in a similar way to oil, but without the associated costs typical of the oil industry.
Arq believes that its technology can change the way the world recovers natural resources and support the global energy transition towards a cleaner future by making more efficient use of waste materials.
Arq’s mission is to achieve Net Zero by growing a circular business model with low carbon processes and off-setting through carbon sequestration. An independent Life Cycle Analysis of Arq’s products and process concluded that, on a barrel for barrel basis and based on the key criteria of global warming potential, fine particulate matter, water consumption, and natural resource scarcity, Arq reduces over 40% of the environmental impact compared with traditional RFO.