Power Wood Holdings Ltd secures up to CA$84M investment from Chair Capital Ltd for two black pellet production plants in Alberta
Type: Investment · Technology: Biomass · Country: Canada · Value: AUD 84M · Announced: 2026-08-04
Power Wood Holdings Ltd secured an investment of up to CA$84 million from Chair Capital Ltd to fund its black pellet production facilities. The funding is split into an initial CA$42 million for the Peace River plant and rail spur near La Crête, Mackenzie County, Alberta, and up to another CA$42 million for the Hay Meadow plant near High Level. Together the two steam‑explosion facilities will produce 700,000 tons of black biofuel pellets annually, with 10‑year take‑or‑pay offtake contracts signed with Japanese energy firms. The projects will use wildfire‑damaged timber and forest debris as feedstock, enabling a low‑carbon replacement for coal in existing power stations. Chair Capital’s financing is conditioned on milestone‑based tranches and will be complemented by third‑party construction financing, while Power Wood Canada Corp operates the plants as a subsidiary of Power Wood Holdings Ltd.
Counterparties
- Power Wood Holdings Ltd (Parent Company)
- Power Wood Canada Corp (Developer)
- Chair Capital Ltd (Investor)
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