Ecostrat, New Energy Risk and Yilkins Forge Alliance to De-Risk Biomass Project Financing
Ecostrat, New Energy Risk and Yilkins
Forge Alliance to De-Risk Biomass Project Financing
– Pairing feedstock supply insurance with technology performance coverage for developers –
September 30, 2026 – Ecostrat Inc., New Energy Risk (NER), a wholly-owned division of Paragon Insurance Group, and Yilkins are joining forces through a new strategic alliance aimed at tackling one of the biggest blockers to biomass project finance: feedstock supply risk. Lenders won’t fund what they can’t verify, and uncertainty around supply has quietly kept viable projects from ever reaching construction. Under the alliance, Feedstock Supply Insurance (FSI) will be made available to developers who license Yilkins’ drying, torrefaction, and carbonization technology, subject to underwriting and project-specific evaluation.
Lenders routinely decline to fund biomass-to-energy and biomass-to-syngas projects for one reason: without a guaranteed feedstock supply, developers are unable to close in on Final Investment Decision (FID). That holds true even when the underlying economics are sound, which is why so many facilities capable of converting wood and organic residues into fuels, chemicals, and biocoal never break ground.
Rather than leaving developers to address feedstock security independently, Yilkins will introduce technology licensees to Ecostrat and NER’s Feedstock Supply Insurance offering, which may help address lender concerns regarding feedstock availability. The alliance is intended to help qualified projects address feedstock supply concerns earlier in the development process and support financing discussions.
Biomass and biosyngas projects are financed against two questions: will the technology perform, and will the feedstock show up? Yilkins’ technology offering already answers the first, backed by New Energy Risk’s performance coverage. Integrating access to Ecostrat’s FSI offering helps address the feedstock component of project risk, complementing the technology-related protections available through New Energy Risk. For developers, that means one less financing gap to bridge on their own — and for Yilkins, a technology package that’s easier for lenders to say yes to.
“Yilkins has already solved the technology risk problem for its licensees. What we’re adding is the other piece lenders always ask about: is the feedstock actually there. Putting those two answers together in one package is what makes this alliance work, and it’s what makes these projects financeable,” said Jordan Solomon, President & CEO, Ecostrat Inc.
“Licensing our technology is only half the battle for a developer; the other half is convincing a lender the project will actually get built. This alliance brings together technology performance coverage from New Energy Risk and Feedstock Supply Insurance from the Ecostrat-New Energy Risk partnership, helping developers address two of the key risks capital providers evaluate during project financing,” said Guy Penard, Vice President, Yilkins.
“Lenders don’t underwrite technology risk and feedstock risk in isolation, they underwrite the whole project. Yet historically, that’s exactly how these risks got evaluated: separately, by different parties, on different timelines. Bringing our technology performance coverage together with Ecostrat’s feedstock supply insurance offering helps create a more comprehensive framework for evaluating project risk,” said George Schulz, CEO, New Energy Risk.
All insurance products referenced herein are subject to underwriting review, policy terms and conditions, and project-specific risk assessment.
To learn more about Feedstock Supply Insurance, visit: www.ecostrat.com/fsi.
About Yilkins
Yilkins is a Netherlands-based technology company dedicated to the valorization of biomass residues into renewable energy and high-value industrial and chemical products. Yilkins’ proprietary technology platform spans drying, torrefaction and carbonization, converting more than a hundred types of forestry, agricultural, and processing residues into biocoal, torrefied pellets, and feedstock for downstream fuels and chemicals. For more information, visit www.yilkins.com.
About New Energy Risk
New Energy Risk is a pioneer of large-scale, breakthrough technology performance insurance solutions. The company provides complex risk assessment and serves as a bridge between technology innovators, financiers, and insurers. Insurance policies are administered through New Energy Risk affiliate, Complex Risk and Insurance Associates, LLC, CA License #0I24307. New Energy Risk is a wholly owned subsidiary of Paragon Insurance Holdings. Learn more: www.newenergyrisk.com.
About Paragon
Paragon Insurance Holdings, LLC, formed in 2014, writes all commercial lines of insurance across more than 25 programs. Paragon’s industry-specific and general underwriting facilities offer insureds, retail agents, carriers, reinsurers and service providers unique product, service, capability, and results. Learn more: www.paragoninsgroup.com.
About Ecostrat
Ecostrat is the North American leader in biomass supply chain advisory and due diligence services for biofuels, renewable chemicals, biogas, and bio-product project development and finance. Founded on the belief that reliable feedstock data is the foundation of successful bio-project investment, Ecostrat works with developers, lenders, and investors to quantify and manage feedstock risk across the project lifecycle. Ecostrat is the originating organization behind the BSCR framework and a founding partner of the BDO Zone Initiative. For more information, visit www.ecostrat.com.