Fulcrum BioEnergy Inc., a closely held company that produces ethanol from garbage, withdrew its registration for a planned initial public offering due to “challenging” market conditions, Chief Executive Office James Macias said.

The company has arranged $175 million in private financing to build its first commercial plant, Pleasanton, California- based Fulcrum said Friday in a statement. The project was awarded a $105 million U.S. loan guarantee in August and will process household garbage into 10 million gallons (38 million liters) of ethanol a year.