Algorhythm Holdings is considering a sale of its planned 100 MW biomass pyrolysis-to-power project in western North Carolina for up to $70 million, with its renewable energy subsidiary, Azure Energy, expecting to begin marketing the development and evaluating offers before the end of the fourth quarter of 2026.
The project is designed to convert regional woody biomass into dispatchable electricity and water. Algorhythm is developing the facility in two phases, initially targeting 50 MW of capacity before expanding to 100 MW, according to information provided by the company.
The proposed sale would take place after the project completes its final permitting requirements. No prospective buyer or offer has been identified in the supplied announcement, and the proposed valuation remains a company estimate rather than a confirmed transaction value.
Two-Phase Development Targets 100 MW of Capacity
Azure Energy is leading development of the biomass pyrolysis project, which is intended to supply electricity using woody biomass sourced from the surrounding region.
Under the company’s proposed schedule, the first phase would deliver 50 MW and reach full operation in approximately 24 months. A second phase would subsequently add another 50 MW, bringing the facility’s total planned capacity to 100 MW around 12 months after the first phase becomes operational.
The timetable is subject to project development and permitting progress. The supplied information does not specify the project’s current construction status, required capital investment, feedstock volumes or the detailed engineering configuration.
Biomass pyrolysis involves heating organic material under oxygen-limited or oxygen-free conditions to produce products such as gas, liquid fractions and solid char. The exact outputs depend on the process design and operating conditions. Further technical details would be needed to establish how the proposed facility would integrate pyrolysis with power generation and water production.
Algorhythm Outlines Two Potential Financial Outcomes
Algorhythm has identified two potential routes to monetising the project: retaining a minority ownership interest after commissioning or selling the development following final permitting. Azure Energy expects to generate approximately $3 million in fee income from the project in 2027, according to the company.
Under the first scenario, Azure would retain a minority equity interest once the facility becomes operational, which the announcement associates with late 2028. The company estimates that this stake could generate more than $4 million in annual earnings before interest, taxes, depreciation and amortisation (EBITDA).
The projection depends on the project reaching operation and achieving the financial performance assumed by the company. The supplied material does not provide the expected electricity sales price, operating costs, financing structure or ownership percentage needed to independently assess the EBITDA estimate.
The alternative is to sell the project after final permitting is completed. Algorhythm estimates that the development could command a value of up to $70 million, based on an assumed valuation of approximately $1 million per powered acre.
Under this scenario, Azure Energy estimates that its equity interest would generate approximately $7 million, alongside additional fee income for managing the transaction.
The proposed valuation is therefore tied to the company’s powered-acre assumption rather than a disclosed purchase offer. The supplied announcement does not detail the land area, the methodology supporting the valuation benchmark or the terms a potential buyer would be expected to accept.
Project Marketing Could Begin in Late 2026
Algorhythm expects to begin marketing the North Carolina development and reviewing potential offers before the end of the fourth quarter of 2026.
Chief executive Andrew Thompson described the project as the most advanced among the company’s developments and said its near-term value was important to the group’s financial plans. Thompson said:
“It is in the most advanced stage of all of the projects, and we view its near-term value as central to enhancing our balance sheet, clearing legacy financings, and positioning Azure to accelerate growth in 2027.”
The statement indicates that a potential transaction could help Algorhythm strengthen its balance sheet and support further development activity through Azure Energy. However, the company has not disclosed a buyer, a formal offer or a completed transaction.
Dispatchable Biomass Power for Industrial Demand
Algorhythm is positioning the proposed facility as a source of round-the-clock, dispatchable electricity for industrial and advanced manufacturing customers that require a consistent power supply.
Unlike generation that depends directly on sunshine or wind conditions, biomass-fired power generation can potentially be scheduled according to demand when feedstock supply, plant availability and operating conditions permit. This does not mean the facility would operate without interruptions or that its output would be guaranteed.
The company’s stated objective is to serve users for whom intermittent electricity supply or curtailment presents operational challenges. The announcement does not identify prospective electricity offtakers, disclose power purchase agreements or provide independent assessments of the facility’s expected availability.
The project’s commercial prospects will therefore depend not only on completing development and securing permits, but also on the reliability of its conversion technology, access to sustainable woody biomass and the economics of supplying electricity to industrial customers.
Bioenergy Business Analysis
Algorhythm’s proposed North Carolina project illustrates how biomass-to-power developments can be positioned as both energy infrastructure and assets for potential sale before construction or full operation. The company’s two proposed monetisation routes offer different financial profiles: a potential near-term exit following permitting, or longer-term participation in operating revenues through retained equity.
The $70 million valuation remains a target, not an established market value. The company’s powered-acre benchmark provides the stated basis for its estimate, but assessing whether a buyer would accept that valuation requires more information on land rights, permitting status, project design, grid access, offtake arrangements and remaining development expenditure.
For the wider biomass sector, the project highlights the importance of development-stage value creation alongside long-term plant ownership. Its eventual significance will depend on whether Algorhythm secures the required approvals, demonstrates a commercially credible technical configuration and converts its proposed valuation into a completed transaction or an operational asset.
