Algorhythm's North Carolina Biomass Project Targets $70M Exit as…

Event summary

Algorhythm's Azure Energy unit is developing a 100MW biomass-to-power plant in North Carolina, with Phase 1 (50MW) expected online by late 2028.
Project could generate $3M in fee income in 2027 and $4M annual EBITDA post-completion, or be sold for up to $70M with Azure receiving $7M.
Azure plans to begin marketing the project for potential sale by Q4 2026.
Project is one of three active developments for Azure, with aggregate NPV exceeding $220M across all projects.

The big picture

This project highlights Algorhythm's dual strategy of developing renewable energy assets while maintaining flexibility to monetize through either operational control or strategic sales. The $70M valuation target aligns with recent data center infrastructure valuations, suggesting strong investor appetite for dispatchable renewable power solutions. Azure's ability to balance development timelines with monetization opportunities will be key to unlocking value across its project portfolio.

What we're watching

Execution Risk: Whether Azure can complete permitting and construction on schedule to realize full valuation potential.
Market Timing: The pace at which Azure can secure optimal buyer interest for the project by Q4 2026.
Strategic Focus: How proceeds from this project will be deployed to accelerate Azure's other renewable energy developments.