Algorhythm Holdings said Friday it is weighing a sale after permitting or a full buildout of its proposed 1,500-megawatt Mississippi campus, a choice that would determine how its Azure Energy unit seeks returns.
The company’s plan pairs a biomass pyrolysis facility producing 500 MW of net generation with 1,000 MW of natural-gas generation. An absorption chilled-water plant rated at 150,000 tons would be part of the campus. Algorhythm says one tenant at the site would take the electricity behind the meter; data centers and advanced manufacturers are among the potential users. The company’s Oct. 23 announcement names no tenant and discloses no signed agreement.
The announcement gives two descriptions of the fuel mix. One refers to renewable natural gas, while the equipment list specifies natural gas without saying whether that gas would be renewable.
Algorhythm calls the development a $7.34 billion project and says a sale after final permitting, expected in early 2027, could value it at up to $1.66 billion, depending on market conditions. The company does not explain the basis for either amount or how they relate. It says Azure holds a 10% equity stake and estimates that a sale at the upper valuation could bring Azure about $166 million in gross proceeds, plus potential fees for managing the transaction.
If the project reaches full operation, Algorhythm projects about $40 million in annual earnings before interest, taxes, depreciation and amortization for Azure. It also forecasts about $5 million in Azure fee income during 2027 under its current engagement. Both figures are company projections. CEO Andrew Thompson said sites with power and water already in place are increasingly scarce, the company’s stated rationale for bundling those services at one campus. The announcement does not identify construction financing or who would bear those costs.
Algorhythm projects initial output of about 250 MW within 18 months after a notice to proceed, with full capacity within 54 months. The announcement does not give a notice-to-proceed date. An independent engineer’s report is due in December. The company expects to select capital-markets partners before the end of 2026 and begin full project marketing in early Q1 2027.
