Investors need upfront proof before sinking funds into recycled mills

The number of deinked or recycled mills developers that are turning to tax-exempt revenue bonds to finance their facilities has increased. These recovered paper mills, which are usually deinked market pulp mills using a variety of grades of office waste or linerboard mini-mills using mixed office waste, DLK and OCC, are becoming increasingly dependent on institutional financing. While such nonrecourse financing allows for low-cost option, it also forces the developer to show investment stability.
Why are developers of recovered paper mills talking to institutional investors regarding financing of their proposed facilities? In recent years, there has been an increased number of recycled or deinked [...]