Ruidoso Advances $139M Waste-to-Fuel Facility Converting Wildfire Debris into Renewable Diesel

Project expected to create 100+ construction jobs and 86 permanent positions while reducing landfill waste

February 16, 2025 (Ruidoso, NM) — The Village of Ruidoso and Independent Power USA are advancing plans for a proposed $139 million waste-to-fuel facility that would convert wildfire debris and other non-hazardous biomass into renewable diesel and biochar. The project is designed to reduce landfill disposal, lower methane emissions, and support regional forest-thinning efforts while creating more than 100 construction jobs and approximately 86 permanent operating positions.

Project Summary

The Project will be a state-of-the-art waste-to-fuel facility designed to process organic waste streams, including wildfire and flood debris wood and other non-hazardous biomass, into renewable diesel and biochar using a controlled low-temperature thermal conversion process. The project will reduce landfill disposal, mitigate methane emissions, and produce drop-in renewable transportation fuels. This facility would support statewide wildfire mitigation efforts and aligns with New Mexico’s Clean Fuels Standards (HB-41, 2024). The project represents an estimated $139 million capital investment and is expected to create more than 100 construction jobs and approximately 86 permanent operating positions.

Signed Ruidoso Project Participation Agreement

The agreement outlines feedstock coordination, site collaboration, and long-term economic participation by the Village. In October 2025, the Federal Aviation Administration (FAA) issued a Determination of Categorical Exclusion related to the proposed non-aeronautical land use at Sierra Blanca Regional Airport. Ruidoso (SRR) Land Use Change clearing aviation and federal land-use considerations for the site. Local Planning and Zoning approvals have also been secured. With site and land-use approvals in place, the project is advancing through the standard industrial permitting sequence required under New Mexico law. As the project moves forward, IPUSA looks to enter into additional feedstock agreements with neighboring communities and municipalities.

“This is not just a Ruidoso problem,” said IPUSA President Steve Lambert. “This hazard exists throughout New Mexico, and we are pleased to bring this state-of-the-art facility to Lincoln County and the region.”

IPUSA has retained Hernandez Consulting, Inc. as the Owner’s Representative and Program Manager and has engaged Bentley Associates LP as exclusive financial advisor.

"We are encouraged by the steady progress being made in Ruidoso and the strong collaboration between IPUSA, the Village, and our project partners,” said Alex Hernandez, CEO of Hernandez Consulting, Inc. “Our role as Owner’s Representative and Program Manager is to ensure disciplined execution, coordination among stakeholders, and responsible advancement through engineering, permitting,and financing milestones. Through our affiliate, NORF Companies, we are also assisting the development team in evaluating and structuring available federal tax incentives to support a sound and financeable capital stack for the project.”

IPUSA is also currently in discussions with nationally recognized engineering, procurement, and construction (EPC) firms regarding project delivery, and is negotiating a long-term operations and maintenance (O&M) partnership with an established national plant operating partner. Commercial discussions are also underway with prospective offtake counterparties for renewable fuel and biochar production.

New Mexico State Representative Harlan Vincent, a staunch supporter of wildfire safety praised IPUSA: “This is a much-needed solution to a statewide problem. We must continue to pursue every possible option to thin the forests and keep our citizens safe by removing the hazardous conditions that plague our lands.”

We want to thank Mayor Lynn Crawford and the village of Ruidoso staff. They have been wonderful partners throughout this process, and we look forward to working with them to help rebuild Ruidoso.

IPUSA and its project partners are continuing engineering, commercial, and financing activities with the goal of reaching financial close upon completion of permitting and capital structuring milestones. Additional updates will be provided as financing and commercial milestones are completed.

Additional updates will be provided as financing and commercial milestones are completed.

For more information: slambert@ipusa.us