Turn uncapped feedstock risk into a defined, financeable structure.
FSI caps delivered feedstock costs for up to 10 years. It is a financing instrument embedded within the capital structure, converting non-investment-grade biomass supply chains into bankable structures that lenders can underwrite with confidence and get projects to financial close.
Two industry leaders. One groundbreaking product.
25+ years of biomass supply-chain intelligence. Calculates the risk of exceedance of feedstock cost above the insured feedstock cost cap across the policy term.
A-rated insurance capacity, a division of Paragon. The balance sheet that guarantees exposure above the insured feedstock cost cap.
Feedstock risk is the #1 barrier to bioenergy project finance.
It’s the largest variable cost in the model, it’s uncapped, and the suppliers behind it are almost never investment-grade. So lenders underwrite the downside, and the project pays for it.
“Feedstock Supply Insurance is not a cost. It is the structured price of getting to financial close on terms that work.”
The Red Line Cost. The cap that changes everything.
FSI establishes a defined Red Line Cost, the maximum delivered feedstock cost at which a project can sustain its debt service obligations. If actual costs exceed the Red Line, the policy responds. The insurer covers the excess. The project’s exposure is capped.
FSI should be understood not as traditional insurance, but as a financing instrument embedded within the capital structure to enable financial close.
The cost of FSI is typically far lower than the cost of higher debt margins, reduced leverage, additional equity dilution, or extended financing timelines. Even 25 basis points of margin improvement can translate to millions per year.
Bound when capital is raised. Active when it matters.
FSI supports every stakeholder in the bioenergy capital stack.
- Cap feedstock cost exposure before approaching lenders
- Improve leverage and reduce equity dilution
- Demonstrate a bankable feedstock risk profile
- Replace an open-ended variable with a capped, insured maximum
- Stabilize DSCR under stress, narrow downside cases
- A-rated third-party balance sheet, not self-insured risk
- Defined cost cap protects returns in adverse scenarios
- Improved leverage reduces equity required, enhances IRR
- Margin improvement — up to millions per year on large stacks
Early engagement allows flexibility. Late engagement can still resolve a gating financing issue.
Your project is a strong candidate for FSI if it meets any of these criteria:
FSI can still be evaluated and structured where it may improve lender terms or strengthen the overall financing case. Projects where feedstock risk is constraining leverage, increasing pricing, or creating hesitation at credit committee should engage immediately.
FSI does not require fully executed feedstock contracts. For projects without a supply assessment, one can be provided.
Initiate a conversation with Ecostrat or New Energy Risk to assess whether feedstock volatility could affect leverage, debt pricing, or timing of financial close. No commitment required.
Book a structured discussion →The complete guide for developers and investors: structure, coverage timing, cost, FAQ, and underwriting requirements.
Download the playbook →The questions every lender, developer and investor asks, answered directly.
FSI establishes a defined feedstock cost cap and transfers exposure above that cap to an A-rated insurer. It allows lenders to underwrite feedstock risk as a bounded exposure rather than an open-ended variable cost.
No. It is structured as insurance, but it functions as a financing instrument. Its purpose is to satisfy capital markets requirements and enable financial close.
By capping feedstock costs above a defined threshold, FSI narrows downside sensitivity cases and stabilizes DSCR under stress. This can improve leverage tolerance and reduce lender uncertainty.
Self-insuring does not change lender underwriting assumptions. FSI provides third-party balance-sheet risk transfer that lenders can actually rely upon in their credit analysis.
The base-case impact is the cost of the insurance premium. However, reduced volatility, improved leverage, and potential debt pricing improvements can materially offset or exceed that cost.
FSI may not be necessary where feedstock supply is vertically integrated, fully price-capped, and already investment-grade, and where financing terms are unaffected by feedstock volatility.
Timing depends on project readiness and data availability, but generally 2–4 months from engagement to binding.
Latest announcements and downloadable materials.
Ecostrat & New Energy Risk awarded InnSure's Insurance Innovation Prize
Read more →Ecostrat & New Energy Risk host Feedstock Supply Insurance webinar
Read more →Ecostrat & New Energy Risk announce partnership to develop Feedstock Supply Insurance
Read more →Feedstock Supply Insurance: unlocking the global bioeconomy
Read more →Is feedstock risk holding your project back from financial close?
Talk to Ecostrat or New Energy Risk. No commitment, just a structured discussion.