US Global got its start in the development of 4 coal-based synthetic fuel projects that have since generated over 48 million tons of synfuel and $12 Billion of tax credits
U.S. Global, LLC (“USG”) acted as co-developer and monetization agent with respect to 4 SCRS Facilities (the “Facilities”) originally constructed by an Indianapolis based company called Earthco, which specializes in the recovery of under valued natural resources including coal fines.
In order to realize the potential value of the assetts, U.S. Global approached the utility industry to find potential partners with the ability to:
- Relocate the Facilities to appropriate sites
- Operate the facilities at reliable levels of production
- Either purchase the synfuel directly or re-market it to 3rd Parties
- Benefit from all or a portion of the tax credits generated by the facilities.
U.S. Global developed a flexible financial structure in order to approach major companies both inside and outside of the utility industry to act as active and passive partners.
U.S. Global succeeded in its objective of developing the structure necessary to realize the asset value of the Facilities. Florida Progress, a major Florida electric utility company, purchased the four Facilities through its Electric Fuels Corporation subsidiary (“EFC”).
U.S. Global, LLC (“USG”) acted as co-developer and monetization agent with respect to 4 SCRS Facilities.
In November, 2000, Carolina Power & Light merged with Florida Progress to form Progress Energy (NYSE:PGN).
The facilities have reached annual production and sales of 8.8-10.0 million tons per annum with annual tax credit production of approximately $228-260 million. Progress realized tax credits in excess of $1.4 billion by the end of the tax credits program.
EFC, became the largest producer of synfuel in the United States...
EFC, became the largest producer of synfuel in the United States and relocated the Facilities to its own coal mine and river terminal sites on the East coast.
EFC became responsible for feedstock supply, operations and maintenance and synfuel sales for each Facility.