Power Wood Holdings Secures CA$84M for Black Pellet Production Facilities
Power Wood Holdings Ltd will receive up to CA$84M from Chair Capital Ltd to develop two black pellet production plants in Alberta. This investment supports the growing demand for biofuels as a coal alternative in energy generation.
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Power Wood Holdings Ltd has finalized an investment agreement worth up to CA$84M with Chair Capital Ltd to develop two black pellet production facilities in Northern Alberta. The funding will be disbursed in multiple stages, starting with CA$42M for the 'Peace River' plant and rail spur, followed by additional amounts linked to project milestones.
Each facility aims for an annual production capacity of 700,000 tons, utilizing wildfire-damaged wood and other forest debris. Power Wood has secured ten-year offtake agreements with Japanese energy firms for its biofuel, which serves as a substitute for coal without requiring significant infrastructure changes.
The global market for black pellets is projected to grow significantly, reaching US$3.2B by 2040. The investment aligns with increasing global emphasis on energy security and clean energy solutions.
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