Canadian pellet plant to restart midyear
Vancouver, British Columbia-based Viridis Energy Inc. has announced the closing of the second, and final, installment of its $5 million non-brokered private placement. The second portion consisted of 20 million units priced at 10 cents per unit.
According to Viridis, the proceeds of the private placement will be primarily used for capital expenditures and operating expenses associated with its Scotia Atlantic Biomass Co. Ltd. pellet plant, which the company acquired last year. The Middle Musquodoboit, Nova Scootia-based facility is expected to become operational this summer, bringing Viridis’s total annual pellet production capacity to 180,000 metric tons. The company also owns the Okanagan Pellet Company pellet plant, located in Kelowna, British Columbia.
“As targets for green, renewable energy consumption set by major industrial countries become effective, we expect demand for wood pellets to far surpass supply,” said Christopher Robertson, chairman and CEO of Viridis. “To prepare for the projected growth in demand, we are also studying production expansion alternatives at the company’s Kelowna, B.C., plant.”