Merritt Green Energy Announces New B.C. Woody Biomass Power Plant

Merritt is to be the site of a new 40 megawatt, biomass-fired power plant for BC Hydro. Merritt Green Energy Limited Partnership announced Friday that it has closed on its financing for the Merritt Green Energy Project, a $235 million investment. An Environmental Appeal Board document indicates the plant will be built “on land at […]

Merritt is to be the site of a new 40 megawatt, biomass-fired power plant for BC Hydro. Merritt Green Energy Limited Partnership announced Friday that it has closed on its financing for the Merritt Green Energy Project, a $235 million investment.

An Environmental Appeal Board document indicates the plant will be built “on land at the intersection of Houston Street and Midday Valley Road in Merritt,” adjacent to the Tolko Industries yard. 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. BC Hydro put the project to tender several years ago and have since been upgrading the power grid in Merritt to be able to connect to the new facility.

Merritt Green Energy Project’s developers and equity investors are Fengate Capital Management Ltd.(Fengate) and Dalkia Canada Inc. Project debt financing of $180 million was sourced from five leading 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 will consume approximately 200,000 tons (dry) of biomass fuel – mostly sawmill waste – annually to generate more than 285,000 MWh of renewable electricity. That’s enough to power more than 40,000 homes for a year.

Fuel will be sourced mainly from local saw mill waste, but could also come from “roadside debris” which is defined as slash piles in logging areas. Vice president and head of western operations for Dalkia Canada Fadi Oubari said roadside debris would be a fuel source of last resort. The plant will use state-of-the-art emissions reduction equipment.

From Castanet.net: http://www.castanet.net/edition/news-story-119845-21-.htm

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