Bonanza Fuel wins big for fuel storage facility
Bonanza Fuel will receive a loan from the Alaska Industrial Development and Export Authority (AIDEA) to expand its petroleum storage facility in Nome.
The project will add three storage tanks to the existing six tanks at the facility and increase storage capacity by 2.3 million gallons to a total of 5.9 million gallons. According to a recent news release from AIDEA, the expansion will also increase competition among local fuel suppliers and enhance the development of Nome’s harbor where increasing marine traffic in the Bering Strait is increasing the demand for fuel.
The project will generate 15 construction jobs and create three permanent positions.
The loan is for $7,312,500, amounting to 90 percent of an $8,125,000 loan brought to AIDEA by Northrim Bank. Northrim originated the loan, participating with $812,500.
AIDEA’s Loan Participation Program provides permanent financing, both taxable and tax-exempt, to borrowers through a qualified originator for the purpose of developing, acquiring or enhancing Alaska business enterprises, or for a qualified energy development project.