Fengate and Dalkia close financing on Merritt Green Biomass Project in British Columbia

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
Fengate and Dalkia close financing on Merritt Green Biomass Project in British Columbia

Merritt Green Energy Limited Partnership has closed on its financing for the Merritt Green Energy Project, a CAD$235 million, 40 MW, state-of-the-art, biomass-fired electricity generation facility located in Merritt, British Columbia, Canada.

The project will sell power under a 30-year electricity purchase agreement to BC Hydro and, with financing in place, has now moved into its construction phase with commercial operation expected in October 2016.

Merritt Green Energy Project's developers and equity investors are Fengate Capital Management Ltd. and Dalkia Canada Inc.

Project debt financing of CAD$180 million was sourced from five project finance banks: Bank of Tokyo-Mitsubishi UFJ (Coordinating Bank), Canadian Imperial Bank of Commerce, National Bank of Canada (Administrative Agent), Natixis and Rabobank.

The Merritt Green Energy Project is the second biomass plant project being developed in British Columbia by Dalkia and Fengate. In November 2013, they announced the financial close on the CAD$235 million, 40 MW Fort St. James Green Energy Project, which is expected to begin operations in July 2016. Dalkia and Fengate have now invested CAD$470 million in the province on green energy projects.

The Merritt Green Energy Project will consume approximately 200,000 tonnes (dry) of biomass fuel, mostly sawmill waste, annually to generate more than 285,000 MWh of renewable electricity, enough to power more than 40,000 homes for a year. Fuel will be sourced from local saw mill waste. The plant will use state-of-the-art emissions reduction equipment.

The facility will be operated by Dalkia under a long-term operations and maintenance agreement. Fuel will be provided by local partners, including Tolko Industries, under a long-term fuel supply agreement.

 Fadi Oubari, Vice President and head of development and western operations for Dalkia Canada, staed:

B.C.'s economic future is bright and will require additional power, and we are excited to be part of the province's burgeoning green energy sector.We look forward to working with the community of Merritt, our supply partners and First Nations on building this plant and generating green energy for British Columbians.

George Theodoropoulos, Managing Director of Fengate Capital Management, commented:

The potential for generating green energy from wood waste is significant in British Columbia, which is why we are investing in this sector. Both the Merritt and Fort St. James Green Energy Projects will provide reliable green energy to BC Hydro and create employment opportunities in both regions.

List of country news

Country news

  • July 31, 2014

    McMorgan & Company and GrandFund Investment Group launch the McMorgan Infrastructure Fund I, L.P

    McMorgan & Company LLC and GrandFund Investment Group LLC announced that the McMorgan Infrastructure Fund I, L.P. has joined the Global Strategic Investment Alliance (GSIA) with US$1.325 billion in capital commitments. Read more
  • August 05, 2014

    Funding announced for Calgary CNG Transit Bus Garage P3

    The Government of Canada and the city of Calgary have announced that P3 Canada Fund will help fund the Stoney CNG Transit Bus Garage PPP project in Alberta, Canada. Read more
  • August 05, 2014

    British Columbia approves hospital expansion through DBFM

    A Request for Qualifications (RFQ) will now be prepared seeking qualified companies to design, build, finance and maintain the new tower. The RFQ is expected to be released later this summer. Following evaluation of responses to the RFQ, up to three companies will be shortlisted and invited to submit responses to a Request for Proposals. A successful proponent will be selected from that process. The entire procurement process will take approximately 18 months to complete. Read more
  • August 06, 2014

    Saskatchewan issues RFQ for school projects

    The Government of Saskatchewan is moving forward with a public-private partnership (P3) model to build 9 schools in the high growth communities of Martensville, Regina, Saskatoon and Warman.  . Read more
  • August 07, 2014

    SNC Lavalin to sell minority stake in 407 highway

    Bloomberg reported on July 31st that SNC-Lavalin Group (SNC) is poised to sell its stake in the most profitable toll road around the world, the highway 407 in Toronto. According to analysts, the sale could fetch as much as C$3 billion ($2.8 billion). Read more

Share this news

Join us

In order to get full access to News section, you must have a full subscription. You can check all the benefits of becoming a member and purchase a subscription on our membership page.