2013-11-15

Fort St. James biomass project on track with financing

One of four wood-fired power plants approved in 2011 under a BC Hydro program to use mountainpine-beetle-killed timber in British Columbia's interior has lined up construction financing, aiming to deliver electricity onto the provincial grid by the summer of 2016.

Fort St. James Green Energy LP, a partnership between Dalkia Canada Inc., a subsidiary of a French power firm, and Fengate Capital Management Ltd. said Thursday that it had closed a $175-million debt financing to support construction of the 40-megawatt, $235-million biomass power plant outside of the interior town it is named for.

"I think overall we did well," said Dalkia senior vice-president Fadi Oubari. "We managed to put together experienced bankers, experienced lenders who liked the project, who liked the biomass (available to support it) and the benefits its going to bring to the area."