Article

S&P Global Ratings assigned a preliminary 'BBB' rating to Carbon Cycle North Carolina LLC's proposed $110 million bond issuance for its anaerobic digestion facility in Duplin County. The facility, which converts organic waste into biomethane, is projected to reach 90% design capacity by May 2026, supported by contracts with investment-grade counterparties.

It processes 555,000 metric tonnes of feedstock annually, producing 4,860 MMBtu of renewable natural gas per day, sold to Duke Energy Carolinas and BP Energy. Approximately 80% of project revenue is secured under fixed-price contracts. S&P forecasts a minimum debt service coverage ratio of 1.78x, with potential negative rating action if production targets or minimum DSCR are not met.