S&P Assigns 'BBB' Rating to Carbon Cycle North Carolina's $110 Million Biogas Bond Issuance
S&P Global Ratings has given a preliminary 'BBB' rating to a proposed $110 million bond issuance by Carbon Cycle North Carolina LLC, which operates an anaerobic digestion facility in Duplin County. The project is expected to achieve 90% of design capacity by May 2026, bolstered by strong contracts with Duke Energy and BP Energy. Approximately 80% of revenue is secured through 15-year contracts. The facility processes 555,000 metric tonnes of feedstock annually, producing 4,860 MMBtu of renewable natural gas per day.
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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.
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