Canadian biofuel company Power Wood Holdings has secured investment from London-based venture capital firm Chair Capital to develop two advanced black pellet production facilities in Northern Alberta.
The CA$84m (EUR 57m) funding will be deployed in tranches aligned with construction milestones. An initial CA$42m (EUR 28m) tranche will support completion of the Peace River facility near La Crête and construction of a rail spur for export transport. A further CA$42m (EUR 28m) is committed for the Hay Meadow plant near High Level, with disbursements tied to verifiable progress.
The two facilities will have combined annual capacity of 700,000 tonnes. Both will produce steam-treated black pellets from wildfire-damaged deadwood, diseased trees and forest floor debris sourced from Northwest Alberta ranges. Power Wood holds 10-year take-or-pay offtake agreements with multiple Japanese energy companies.
Black pellets function as a drop-in coal replacement in existing thermal power stations without requiring infrastructure modification. The feedstock-to-fuel conversion produces a negligible carbon footprint compared to conventional coal.
Click here to see more...