Algorhythm flags up to $70 million value in North Carolina biomass project

Algorhythm Holdings said its Azure Energy unit sees multiple monetization paths in a 100 MW biomass power project in western North Carolina, including near-term project sale proceeds and future operating cash flow. The company said the asset could help fund growth, strengthen the balance sheet and support a sale process targeted for late 2026.

Why it matters: - Algorhythm Holdings is pointing to the North Carolina project as a potential source of near-term cash and longer-term recurring earnings. - The project could produce either a sale event valued at up to $70 million or operational income tied to Azure Energy’s minority stake. - The company said the project could help pay down legacy financings and support growth at Azure Energy.

What happened: - Algorhythm Holdings said its Azure Energy unit is advancing a 100 MW pyrolysis-to-power project in western North Carolina. - The project is designed to convert regional woody biomass into dispatchable electricity and water. - Algorhythm said the first phase is expected to deliver 50 MW and become fully operational in about 24 months. - The second phase would expand output to 100 MW about 12 months later.

The details: - Based on existing contracts, Azure Energy is forecast to earn about $3 million in fee income in 2027. - If the project is completed as scheduled, Algorhythm expects more than $4 million in annual EBITDA from its minority equity stake once the facility is operating in late 2028. - If the project is sold after final permitting, Algorhythm estimates the asset could be worth up to $70 million. - That estimate is based on roughly $1 million per powered acre, consistent with Colliers' 2026 U.S. Data Center Marketplace Report. - A sale could generate about $7 million for Azure Energy’s equity stake, plus additional transaction-management fees. - Azure Energy expects to start marketing the project and review offers before the end of Q4 2026. - Algorhythm said the project is one of three active projects being advanced by its team. - The company said the North Carolina asset is the most advanced of the three.

Between the lines: - The release presents the project as both an infrastructure play and a financial asset, which gives Algorhythm multiple exit paths. - The sale valuation framework suggests the company is benchmarking the project against data-center-style land economics rather than only power-generation economics. - The timing implies management wants optionality now, before full buildout, if a buyer values the permitting and development work more highly than the future operating cash flow.

What's next: - Azure Energy plans to begin marketing the project before the end of Q4 2026. - The company expects to evaluate offers as it moves through final permitting. - Management said it is working to monetize the project’s value over the coming months.

The bottom line: - Algorhythm is trying to turn a single North Carolina biomass project into both a near-term sale candidate and a long-term power asset.